REUTERS
Interinstitutional talks between the European Parliament, the European Council and the country presiding in the EU (Malta) on granting trade preferences to Ukraine have ended with reaching a compromise, according to which quotas for processed tomatoes, wheat, corn, and honey will be reduced, while urea will be excluded, according to an UNIAN correspondent.
"A strong compromise backed by three institutions (the European Parliament, the European Commission and the Maltese presidency) was reached after heated discussions. It foresees granting Ukraine preferences for all agricultural products proposed by the European Commission, five of them were partially restored, and urea was removed from the industrial complex," an EP source told UNIAN after the talks, which took place in Strasbourg late on Tuesday evening.
Read alsoEU's Council agrees its stance on trade measures for UkraineIn particular, the following annual quotas were set: 2,500 tonnes for honey, 3,000 tonnes for processed tomatoes, 65,000 tonnes for wheat, 625,000 tonnes for maize, and 325,000 tonnes for barley.
"These reductions are a response to the sensitivity of some member states in the agricultural sector," the source said.
In addition, the agreed conclusions stress that combating corruption by Ukraine is one of the prerequisites for granting the trade preferences.
In addition, goods that will originate from areas seized by Russian-backed separatists in Ukraine's east will be subject to additional checks.
Also, the European Commission is obliged to report on the implementation of these preferences in more detail.
"The decision taken yesterday provides support for trade with Ukraine while protecting the EU's vulnerable interests of farmers and industry," EP rapporteur Jarosław Wałęsa said, commenting on the outcome of the talks.
The tariffs will be in effect for up to three years as a supplement to the Deep and Comprehensive Free Trade Area Agreement.
As UNIAN reported earlier, the European Commission in September 2016 proposed an increase in quotas for exports of some goods from Ukraine. In particular, corn quotas would grow by 650,000 tonnes, those of wheat by 100,000 tonnes, barley by 350,000 tonnes, cereals and processed grain by 7,800 tonnes, oats by 4,000 tonnes, honey by 3,000 tonnes, grape juice by 500 tonnes, and processed tomatoes by 5,000 tonnes. At the same time, the Committee of the European Parliament removed tomatoes, barley, and urea from the tariffs list.
The then Minister of Agrarian Policy and Food Taras Kutovyi claimed earlier that the economic effect of the European Parliament's decision to increase the annual quotas for duty-free shipments of Ukrainian farm produce to the EU would be estimated at US$196.95 million.