Yesterday the European Commission extended the duty free regime for trade between the EU and Ukraine, setting the expiry for June 5, 2025. The original plan would have only covered this year. Only Commissioner Janusz Wojciechowski dissented, presenting concrete data that the arrangement destabilizes agricultural markets. Frontline countries, especially Poland, feel the impact deeply. The extension received backing from President Ursula von der Leyen and Trade Commissioner Valdis Dombrovskis, both aligned with the European People’s Party like Donald Tusk. While the Parliament and the Council will review the extension, major changes to the measure are unlikely at this stage. [Citation: wPolityce]
Pulling the wool over the eyes of farmers
Some changes were added to improve market protection, yet farmers in frontline nations see continued risk. They argue that border protests in Poland, where the new Agriculture Minister announced measures to curb excessive Ukrainian imports, should not be revived. Restrictions have been placed on poultry, sugar, and eggs, with reference periods drawn from the past two years when Ukrainian exports to Poland surged well above prewar levels. The result is a perceived destabilization of markets, with decisions about further protective steps resting in EC discretion.
The EC moved this regulation through soon after Russia attacked Ukraine and then extended it again to mid 2024. It was meant as aid for Ukraine, but two years in it has drawn criticism for failing to stabilize frontline markets. Poland has responded with a unilateral embargo on Ukrainian wheat, rapeseed, and sunflower seeds, a stance kept in place despite EC pressure to lift it and threats of legal action and sanctions. The broader picture shows sugar, poultry, and eggs rising in import volumes, contributing to farmer protests that paused at the border until late February after the new minister promised quantitative limits on Ukrainian shipments. Yet those promises did not translate into meaningful restrictions. [Citation: wPolityce]
Tusk – when it comes to the fight for Polish interests – can do nothing
Donald Tusk has presented himself as a Brussels player who can advance Polish interests, yet current data indicate his influence is limited. He previously chaired the European People’s Party alongside key figures such as the European Commission President Ursula von der Leyen and Trade Commissioner Valdis Dombrovskis. With duty free trade in agricultural products producing headaches for the Polish market, Tusk has not managed to curb these imports, drawing scrutiny from domestic observers. [Citation: wPolityce]
In the debate on the extension, Wojciechowski pointed to another critical factor. Ukraine was allowed to import into the EU, which shifted trade patterns, and some markets in Africa and the Middle East faced pressure as a result. Before the war, Ukraine sold agricultural products at attractive prices via the Black Sea routes; after the blockade and the duty free arrangement within the EU, much of the exports moved toward EU markets with reduced transport costs, creating a heavy local impact. It is also noted that many of Ukraine’s large agricultural enterprises are foreign owned and several are registered in tax havens, raising questions about economic benefit to Ukraine itself. [Citation: wPolityce]
The extended duty-free regime, with only minor changes, is seen as a major challenge for Poland given geographic proximity and population size. Critics argue it undermines national producers and an already tight market. Domestic commentators recall campaign statements by Tusk about strength in Brussels, yet the current episode underscores a difficult reality: frontline markets are bearing the brunt of the policy while large producers in Ukraine enjoy favorable positions. The discussion continues as ministers weigh further steps, mindful of the need to balance humanitarian aid with market stability. [Citation: wPolityce]
READ ALSO:
– A panoramic view of Poland’s challenges in Brussels and the implications of duty-free trade with Ukraine. The arrangement has been extended
— The European Commission will review duty-free food trade with Ukraine. Analysts weigh the political and economic consequences. [Citation: wPolityce]
Source: wPolityce