CIUS sugar group expresses concern over vote potentially limiting Ukrainian EU exports
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A decision by the EU parliament to amend an existing agreement with Ukraine that suspended the country’s export tariffs on its sugar supplies in light of the ongoing war with Russia, has sparked considerable industry concern, writes Neill Barston.
The move comes as the conflict between the two neighbouring countries passed the two-year mark recently, with no clear end to the hostilities in sight, and prospects for peace negotiations being limited.
As previously reported by Confectionery Production, the key export of sugar from Ukraine had been given exempt status on import taxes to the EU in light of the invasion on the country is now seemingly under threat.
CIUS, the European sugar users organisation has expressed its concern at an EU parliament verdict this week that saw 347 votes in favour, 117 against and 99 abstentions to amend the EU Commission’s proposal to suspend import duties and quotas on Ukrainian agricultural exports to the EU for another year, from 6 June 2024 to 5 June 2025. MPs referred the report back to the Committee on International Trade to start negotiations with the Council
Significantly, Cius’s president Yuriy Sharanov was said to be ‘shocked’ by last minute European Parliament amendment that would slash sugar imports from Ukraine and damage both Ukrainian and European interest.
He said: “The amendment would not just limit imports, it would result in a drastic cut of imports and undermine prospects for Ukraine’s economic future, given the importance of agriculture in its economy. For sugar, we see no justification for drastically reducing imports from Ukraine. The EU has a chronic sugar deficit and needs to import between 2 and 3 million tonnes annually to meet demand.”
However, according tot he EU, the revised legislation gives the Commission the power to take swift action and impose any necessary measures should there be significant disruptions to its European market, or to the markets of one or more EU countries due to Ukrainian imports, including an emergency brake for particularly sensitive agricultural products MEPs voted to amend the Commission’s proposal to include more sensitive products and a wider reference date for calculating average volumes.
As the EU noted, its latest measure were considered conditional on Ukraine’s respect for democratic principles, human rights, the rule of law, and its sustained efforts to fight corruption and organised crime.