News

On 24/05/2022, the Council adopted a regulation allowing for the temporary liberalization of trade and other trade concessions in respect of certain Ukrainian products. The approval was preceded by a proposal submitted on 27/04/2022 by the European Commission to suspend import duties and quotas on Ukrainian exports to the EU for one year. The EP plenary voted on the document on 19/05/2022. The Regulation will enter into force on the day following that of its publication in the Official Journal of the EU. According to the ECOFIN Council statement, the EU will significantly support the Ukrainian economy with this measure. The decision applies to industrial products subject to the phasing out of customs duties by the end of 2022, fruit and vegetables subject to the entry price system, agricultural products and processed agricultural products subject to tariff quotas.
More information is available here.

India announced a wheat export ban on 14/05/2022. Its prices on the domestic market are at a record high, due to extreme temperatures, which have led to a drop in production. According to world media, India now plans to reduce sugar exports to stabilize domestic prices. Exports should be limited to 8-10 million tons this season. World sugar prices have risen due to low production in Brazil and high fuel prices.
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Last week, the European Commission proposed an exceptional measure financed by the European Agricultural Fund for Rural Development (EAFRD) to help farmers and agri-food businesses affected by a significant increase in input costs through the payment of a lump sum from the fund. According to the European Commission, such price increases, especially for energy, fertilizers and feeds, distort the agricultural sector and rural communities and cause liquidity and cash flow problems for farmers and small rural businesses engaged in the processing, marketing or development of agricultural products. Once the Commission proposal has been approved by Parliament and the Council, Member States will be allowed to decide on the use of available funds of up to 5% of their EAFRD budget for 2021-2022 to directly support farmers and SMEs involved in processing, marketing, and development.
More information is available here.

On 18/05/2022, the European Commission presented a revised plan called REPowerEU, which aims to end the EU's dependence on fossil fuels from Russia. The total financial value of the plan is expected to be €300 billion, and dependence should end before 2030. According to the European Commission's plan, Member States should be allowed to transfer part of their agricultural subsidies to the Recovery and Resilience Instrument to finance the necessary investments, and a further €7.5 billion can be transferred from the CAP budget to rural development (12.5% of the national envelope) into the Recovery and Resilience Facility (RRF) to finance energy investment projects.
More information is available here, here, here and here.

On 19/05/2022, the European Parliament approved the European Commission's proposal to suspend annually all tariffs and quotas on imports of products from Ukraine into the European Union. The purpose of the suspension of import duties and quotas is to support the Ukrainian economy and to contribute to the country's gradual integration into the EU internal market.
More information is available here and here.