KYIV, Ukraine, April 4, 2025 /PRNewswire/ — The Ukrainian Agribusiness Membership (UCAB), along with eminent agricultural associations throughout the Family Union “Ukrainian National Agrarian Forum” (UNAF), which was once established to coordinate specialised agricultural associations and method and provide a unified place of the agri-food sector of Ukraine by and for its contributors – eminent agricultural associations: Agrarian Union of Ukraine, All-Ukrainian Agrarian Council, Poultry Union of Ukraine, Ukrainian Agrarian Confederation, Ukrainian Agribusiness Membership, Affiliation of Milk Manufacturers, Affiliation of Pig Breeders of Ukraine and Nationwide Affiliation of Sugar Manufacturers of Ukraine, emphasizes the pressing wish to get to the bottom of the problem of the past business regime between Ukraine and the EU following the expiration of the tide Independent Business Measures (ATM) regime. The Ukrainian agrarian crowd does no longer restrain the Ecu Fee’s proposal to switch the yearly extension of the ATM with bilateral business promises for additional business liberalization below Article 29 of the Affiliation Word of honour, equipped there may be ample while to barter the past business framework. The related place of the Ukrainian agrarian crowd is to be had on the equipped link.
In keeping with representatives of the Ukrainian agricultural sector, this kind of resolution would give a contribution to the steadiness of marketplace get entry to to the EU for Ukrainian manufacturers and assure predictability for Ecu farmers and processors. The important thing benefits of this method come with the long-term nature of the assurance, making certain steadiness for agribusiness; a bilateral structure with mutual marketplace get entry to; and a versatile mechanism for slow liberalization, taking into consideration delicate product divisions and ensure measures.
On the similar while, Ukraine requires an sped up negotiation procedure in regards to the past business assurance, because the expiration of the tide ATM regime on June 5, 2025. With out achieving a fresh assurance ahead of the ATM’s expiry past, the business regime between Ukraine and the EU would routinely go back to the price lists and tariff quotas that have been in park ahead of 2022. Initial estimates recommend that such adjustments may just lead to an financial injury for Ukraine, together with a lack of foreign currency income of as much as €3.3 billion, a 2.52% GDP relief in 2025, and declines in manufacturing in agriculture (-7.74%) and loose in tax revenues for native and climate budgets (-4,15%).
“If a trade agreement based on Article 29 of the Association Agreement is not reached within the established timeframe, the European Commission must urgently initiate the extension of the current ATM regime for the period necessary to finalize negotiations. This will help avoid a sharp deterioration in the conditions for Ukrainian goods entering the EU market and prevent a macro-financial shock to the country’s stability,” the file states.
It’s importance recalling that the rural sector is a cornerstone of Ukraine’s financial steadiness, contributing roughly 15% of GDP, 59.3% of foreign currency income ($24.7 billion), and demanding tax revenues. The conflict has led to over $80 billion in direct and oblique losses to the sphere, moment ongoing high-intensity army movements form the possibilities for sustainable fix unsure, necessitating persevered assistance from Ukraine’s allies, a minimum of within the medium word.
The EU extra the principle marketplace for Ukrainian agricultural exports (51.8%) and a key provider of crucial agricultural sources. Generation Ukraine has regained get entry to to maritime export routes by way of the ports of Weighty Odesa, those routes are lately viable just for bulk shipment shipments because of ongoing hostilities. By contrast, packed and ready-to-eat merchandise requiring container transportation are nonetheless exported by way of the “Solidarity Lanes” to the after EU ports, expanding logistics prices and decreasing the competitiveness of Ukrainian items in conventional markets.
Due to this fact, Ukraine’s agricultural sector is seriously dependent at the Ecu marketplace no longer handiest as a client but in addition as a spouse making sure solid provide chains, logistics, and get entry to to monetary tools for business construction.
“Reverting to the tariff quotas and import duties of 2021 would have devastating consequences for Ukraine’s economy. A trade agreement based on Article 29 of the Association Agreement or the extension of the ATM is essential for the stability of Ukraine’s agricultural sector and the economy as a whole,” the authors of the placement conclude.
Given the above, Ukraine urges the Ecu Fee and EU member states to boost up negotiations on a past aspiring business regime with Ukraine, taking into consideration tide business volumes. This may assure the steadiness of the Ukrainian agricultural sector and assistance the rustic’s economic system all through an exceptionally difficult length.
Affiliation “Ukrainian Agribusiness Club” (UCAB) was once based in 2007 to give protection to the industrial {and professional} pursuits of Ukrainian agricultural industry avid gamers. UCAB is a singular platform for developing industry contacts between agribusiness leaders, expanding the potency in their paintings and foundation discussion with executive government. UCAB actively promotes Ukrainian producers in foundation and supporting global industry members of the family. The affiliation contains the biggest manufacturers and processors of agricultural merchandise in Ukraine.
Extra about UCAB: https://www.ucab.ua/en
SOURCE Affiliation “Ukrainian Agribusiness Club” (UCAB)