Duty-free quotas open doors to European market

On the outcomes of 2015, the share of the EU in the total structure of #agricultural_exports of Ukraine amounted to 28.2% or $4.2 billion. Out of this amount, domestic producers can export 36 product groups in the framework of duty-free quotas, Oleksii Pavlenko, the Minister of Agrarian Policy and Food of Ukraine announced.

The Minister noted that under the EU legislation, at the moment, the administration of tariff quotas was carried out according to two principles: the principle ‘first come – first served’ and through a system of import licenses.

“Ukraine sees the effect of the autonomous preferential trade regime with the EU, which provides for the quotas, as a virtual opening of the doors to the European market, the access to which is based on clear rules. In this case, the point is not in the restriction of the exports quantities, but in the fact that the export of goods exceeding the set amount will be taxed according to the same conditions that are currently valid for Ukraine”,Oleksii Pavlenko stressed.

The Minister also noted that some quotas had exhausted quite quickly, though. In particular, this applies to some items in grain and cereals, and meat exports, which were closed immediately.

“As of 2015, Ukraine exhausted 100% of quota for grape and apple juices, wheat, corn, barley cereals and flour, and mostly exhausted for chicken, oats, processed tomatoes and honey. The quota for sugar was used for 98.9%. In addition, we used quite rapidly the quotas for barley, barley flour and kibble (77.7%), malt and wheat gluten – 72.9 %, bran, wastes and residues – 22.7% and an additional annual quota for chicken – 22.5 %. Additionally, in 2015, Ukraine launched the exports of sugar and starch in the framework of the autonomous preferential trade regime and intensified the supplies of oats and malt,” the Minister writes.

However, there are product groups, where the quotas were not used at all last year. This applies, for example, to quotas for lamb and dairy products.

“It is not hard to see that there is nothing complicated in the export process and in the use of quotas. At the same time, to take advantage of a quota is necessary, among other things, to fulfill a number of requirements for product certification and to comply with technical, sanitary and phytosanitary regulations of the European Union. Domestic manufacturers should accept the challenge and showcase that our products are worthy of finding a place in the European market”, Minister Oleksii Pavlenko added.

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