EU countries seeking compromise on extending duty halt on Ukrainian food products

Brussels – Support Ukraine “as long as it takes”, but not at the cost of undermining the stability of the internal market. With these two stakes, Brussels is seeking final approval to extend the stop to duties on food imports from Ukraine (ATM regulation). EU ambassadors are scheduled to vote tomorrow on the provisional understanding found on March 20 with the EU Parliament. However, member states are working on a new compromise. On March 25, the Belgian rotating presidency of the EU Council was forced to postpone the confirmation vote of the permanent representatives of the 27 countries because of the risk of a blocking minority. France, Poland, and Hungary had raised objections on several issues related to the conditions for triggering the “emergency brakes” provided for in the event of market disruptions in the Union (or just one of its members) and to the inclusion of wheat in the list of products. In addition to Paris, Warsaw, and Budapest, a large front of the undecided convinced the EU presidency to take more time.

First and foremost is Italy. Although diplomatic sources had suggested that Rome, two days ago, would have been ready to vote in favour of the deal, only asking for a change in the reference year on import volumes of Ukrainian products to trigger the “emergency brakes” (from 2022-2023 to pre-war 2021). Today, the EU agriculture ministers reopened the issue to try to polish their positions. And Francesco Lollobrigida said the Italian government “has taken the lead with a proposal and a contribution that we expect to be taken up by the Belgian presidency.” Together with “France, Cyprus, Greece, Slovenia, and Spain,” Italy would be the promoter of a “common position,” a “compromise to give a response to the demands for a balance of prices in the European internal market without, however, unduly damaging Ukraine.”

The proposal on which the Belgian presidency is working will end up on the table of member states and representatives of the parliament, who, as co-legislators, could get in the way of any changes to the agreement found only a week ago. An agreement that would extend the suspension of duties on Ukrainian exports to the Union and, at the same time, allow the Commission to take action within 14 days (no longer 21) to trigger automatic safeguards in the event of market disruptions.

The “emergency brake” has already been strengthened in the provisional understanding for “particularly sensitive” agricultural products (namely poultry, eggs, and sugar) and takes into consideration “any negative impact on the market of one or more member states” and not just on the EU market as a whole. In addition, the list was extended to four additional products (oats, corn, semolina, and honey) with only the commission’s commitment to strengthen the monitoring of imports of wheat and other cereals.