Ukraine used up all quotas for sale of flour and sugar to EU

Ukraine economy, agriculture: Ukraine quotas for sale of flour and sugar to EU

This article discusses #Ukrainian export of flour and sugar to #EU under the terms of #EU-Ukraine #Free Trade Zone Agreement, which is subject to some #limitations in the form of #quotas.

Visit our website if you are interested in the #Ukrainian economy or #doing business in Ukraine.

Under the terms of EU-Ukraine Free Trade Zone Agreement, which became effective on 1 January 2016, Ukraine may sell certain goods to EU without any import duties up to a certain amount. As of 10 March 2016, Ukraine has used up all quotas for sale of flour and sugar to EU (6.3 thousand tons and 20 thousand tons respectively). All further sales of these products will be subject to import duties imposed by the EU Member States.

In addition, the Ministry of Economic Development and Trade of Ukraine announced that Ukrainian entities have almost used up quotas for sale of processed tomatoes (86.9% out of 10 thousand tons), soft wheat, wheat flour and granules (74.5% out of 950 thousand tons) and oat (55% out of 4 thousand tons).

The Ministry of Economic Development and Trade of Ukraine also notes that quotas for sale of corn, grape and apple juice and honey were completely used up by 16 February 2016.

We note that a long-awaited EU-Ukraine free trade zone was launched on 1 January 2016. Under the terms of Free Trade Zone Agreement, certain goods are imported from Ukraine to EU on the basis of quotas established in the economic part of Free Trade Zone Agreement. The list of such goods includes poultry meat, cereals, flour, honey, dairy products and milk, mushrooms, etc. If the respective quotas for certain goods are filled up, any sale of such good to EU is subject to import duty.

We also note that in 2016 Ukraine seeks to ratify free trade zone agreement with Canada and conclude free trade zone agreements with Israel and Turkey.

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