Ukrainian agrarians are urging the government to repeal the new law that imposes a 10% duty on the export of soy and rapeseed. They believe this decision not only contradicts the Association Agreement with the EU but also restricts the rights of domestic producers.
This is reported by Business • Media
Impact of Duties on Export and Domestic Market
According to the All-Ukrainian Agrarian Council, this law violates the provisions of the agreement between Ukraine and the European Union, which prohibits the imposition of duties on export products. Although the document allows for duty-free export for producers and cooperatives, this provision is effectively non-functional due to the lack of necessary subordinate legislation. As a result, the export of oilseeds from Ukrainian ports has nearly come to a halt.
“The new law on the export of soy and rapeseed, which imposes a 10% duty, contradicts agreements with the EU and restricts the rights of Ukrainian producers”.
Losses for Producers and Appeals to the Government
The Ukrainian Grain Association, representing about 90% of grain exporters, has also opposed this decision. According to the association, around 500,000 tons of soy and rapeseed remain in warehouses, unable to be exported, causing producers losses of up to $50-60 per ton. Agrarians warn that losing access to the main sales market in the EU has sent a negative signal to European partners and may have long-term consequences for the Ukrainian agrarian sector.