Bulgaria insisting EU introduce quotas for imported Ukrainian agricultural products

Bulgaria is insisting on introducing tariffs and quotas on the import of Ukrainian agricultural products into the European Union, explaining its demand by saying that the lifting of restrictions on trade in these products has harmed local farmers.

"The increase in exports from Ukraine is causing serious concern among producers [farmers], since they are not able to compete with the prices for Ukrainian products," Interfax reports citing the Bulgarian Ministry of Agriculture.

Bulgaria is convinced that the maximum volumes of Ukrainian agricultural products should "correspond to market logic and processing capacities, as well as provide greater clarity and confidence for both producers and processors."

The Ministry said that Bulgaria has significant capacity for the production of both refined and unrefined sunflower oil, as well as biodiesel fuel. Bulgarian producers in these sectors are among the largest in the EU. At the same time, Bulgaria does not produce enough sunflower for its production capacity and is heavily dependent on imports from Ukraine.

The introduction of duties on Ukrainian sunflower and rapeseed would complicate the sale of Bulgarian products on the world market. When a ban on the import of a number of Ukrainian agricultural crops came into force last year, some production facilities closed, the Bulgarian Ministry of Agriculture said.

As for the quality of Ukrainian raw materials, the ministry said that in 2023, Bulgarian health authorities inspected them and found them to be completely safe. In addition, sunflower from Ukraine has a higher average oil content than the crop grown in Bulgaria.

To satisfy Bulgarian farmers and oil producers, as well as livestock farmers who rely on cheap imports, the Bulgarian government has proposed that the European Commission set quotas for duty-free imports. If they were to be exceeded, the Bulgarian Agriculture Ministry would insist on paying customs duties on Ukrainian products.

The ministry warns that the current situation could lead to a decline in domestic production, which "could affect the country's food security in the long term."

"The increase in exports from Ukraine is a cause of serious concern for producers, since they cannot compete with prices for Ukrainian goods, which is a consequence of the application of different production standards," the Bulgarian Agriculture Ministry said in a letter.

The Bulgarian government is confident that the European Commission can take measures to protect the markets of EU member states neighboring Ukraine and allow them to use their export potential. One of these measures could be the introduction of tariff quotas on the most sensitive agricultural products as part of the negotiations on the extension of duty-free trade in agricultural products with Ukraine in the spring of 2024.

"For products on which the re-introduction of tariff quotas is not possible, another solution to the problem of increasing imports from Ukraine should be found," the Bulgarian Agriculture Ministry said.