Consequences of the Suspension of the Customs Visa-Free Regime with the EU for the Ukrainian Agricultural Sector

Який сектор в Україні постраждає найбільше від зупинки "митного безвізу" з ЄС і чи є альтернатива?

Analysts emphasize that the European Union has no intention of extending the “trade visa-free regime” that allowed Ukraine to trade goods without paying customs duties. Poland and several other countries opposed the automatic extension of this agreement. However, it is worth noting that the EU will not cancel all autonomous trade measures and, in turn, offers Ukraine to update the terms of free trade under the association agreement.

This is reported by Business • Media

Impact on Ukrainian Exports

The share of the EU in total Ukrainian exports increased from 40% in 2021 to over 60% in 2024. This is especially noticeable in the agricultural sector, where the share reached 80% depending on the group of goods. This sector is expected to suffer the most due to the return of customs duties.

More than 90% of sunflower oil supplied to the EU comes from Ukraine, and Spain is among the top three largest importers of Ukrainian grain. Ukraine should consider the possibility of returning to markets in Africa or the Middle East to partially compensate for losses from the suspension of the “customs visa-free regime.” However, complicated logistics, danger, and competition with Russia may hinder this.

Protests by Polish Carriers

It should also be noted that Polish carriers have announced a protest action at the largest border crossing with Ukraine, “Dorohusk-Yagodyn.” The aim of the action is to demand the restoration of the permit system for Ukrainian trucks.