EU looks to modify cap on Ukraine farm imports

The EU has decided to modify calculations for caps imposed on certain imported Ukrainian farm products -- but did not place restrictions on wheat as several nations including France and Poland had wanted.

The changes apply to an extension, from June, of an EU arrangement that allows Ukrainian agricultural goods to enter the bloc duty-free.

That EU arrangement is in place to support Kyiv after Russia's all-out invasion severely limited Ukraine's access to its usual sea export routes.

Ambassadors from the 27 European Union countries decided to slightly adjust periods used to calculate cap volumes for Ukrainian poultry, eggs, sugar, maize, groats and honey, diplomatic sources said on Wednesday.

That would have the effect of reducing the duty-free threshold on those goods from those set out in an initial agreement announced on March 20.

Instead of basing the duty-free caps for those goods on average volumes from 2022 and 2023, now the "reference period... would be extended to the second semester of 2021," one diplomat said on condition of anonymity.

"This is a very, very delicate balance," the diplomat said.

France had been asking for 2021 to be included in the range to work out averages, arguing that volumes had been too big when looking at just 2022-2023.

France and Poland had unsuccessfully sought to have wheat included in the list of Ukrainian farm products subject to the caps.

Polish farmers have been blocking Ukrainian agricultural goods in protest at what they saw as unfair competition, while France has been making compromises to its own farmers to put down a revolt in the sector.

The modification agreed on Wednesday would reduce the value of Ukrainian agricultural imports into the EU by around 240 million euros (US$260 million) compared with 2023. The European Parliament now has to look at the agreement before voting on it next month, with a view to it coming into effect before the current exemption period runs out on June 5.