HomeEconomyEU reportedly prepares to apply higher tariffs on Ukrainian imports

EU reportedly prepares to apply higher tariffs on Ukrainian imports

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The European Union is getting ready to use a lot larger tariffs on imports from Ukraine inside weeks, hitting Kyiv’s economic system at a vital time in its struggle towards Russia, the Financial Times (FT) reported on Wednesday, citing diplomats.

The proposal, just lately despatched to EU member states, would drastically minimize tariff-free quotas for agricultural merchandise – a lifeline for Ukraine’s farmers and finances, the report by FT mentioned.

The transfer got here after Poland led a push to guard the bloc’s farmers, in keeping with diplomats.

The EU has an present free commerce take care of Ukraine, however went additional within the wake of Moscow’s 2022 invasion and briefly suspended remaining duties. According to the report, these preparations lapse on June 6, and the EU is planning to interchange them with “transitional measures” whereas the 2 sides replace their general commerce settlement.

When first established in 2022, the tariff-free association utilized to Ukraine’s poultry, wheat and sugar, a lot of which was passing by EU nations en path to Africa and Asia. But farmers and politicians in Poland, France and elsewhere quickly blamed Ukrainian exports for driving down home costs.

A fee spokesperson confirmed to the FT that the postwar preparations wouldn’t be renewed “because we are currently working on the review” of the EU-Ukraine free commerce settlement. “The commission is also looking into possible transitional measures in case the negotiations are not finalised and applied by June 6,” the spokesperson added.

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