Ukrainian agriculture to see huge losses if free trade zone with EU were created on EU terms, say experts
Kyiv, June 30 (Interfax-Ukraine) – The creation of a free trade zone with the European Union on the terms proposed by the EU would lead to large losses of the Ukrainian agrarian sector, according to the Ukrainian Club of Agrarian Business (UCAB).
"The country's agrarian sector could see huge losses if Ukraine agrees to accept the terms proposed by the European Union," UCAB President Alex Lissitsa said at a press conference at Interfax-Ukraine in Kyiv on Tuesday.
He called on the country's leadership to protect the positions of the Ukrainian agro-industrial sector in talks on the creation of the free trade zone with the European Union in part of tariff protection on the domestic market, the size of state support of the agricultural sector, cancellation of the export duty on sunflower seeds and geographic names of some foodstuff.
UCAB Director General Volodymyr Lapa said that the European Union proposed fewer quotas on foodstuff than the country now supplies to the European market, or initiated the withdrawal of products, which are interesting for Ukraine in the terms of exports, from free trade. He said that the country should protect the quota on meat imported by the European Union at 50,000 tonnes per year, that for dairy products – at 20,000-30,000 tonnes, sugar – at 25,000 tonnes and free exports of grain to the European Union.
In addition, the experts said that Ukraine should not agree to cancel export duty on sunflower seeds proposed by the EU. Lissitsa said that the cancellation of the duty would lead to the fact that the country would become a sunflower oil importer instead of being the world's leader on sunflower oil exports market, as sunflower seeds would be exported from Ukraine. The experts said that this would cause a jump in the prices of sunflower oil on the domestic market.
The experts also said that the European Union is also discussing the ban on the use of names of some wines like sherry, Madeira, port and some types of cheese and even bread.