News
27.02.2024
Ukrainian farmers appeal to Members of European Parliament: Your vote will be decisive for the economic fate of Ukraine
Your vote can be decisive for the economic fate of Ukraine in this crucial year, - this is the message the Ukrainian farmers and agricultural producers associations, UCAB, sent yesterday to the members of the European Parliament trade committee. The message comes ahead of the committee’s vote on March 7 on the Commission’s proposal to extend autonomous trade preferences to Ukraine for another year, but with a set of safeguard measures on products deemed sensitive for European agricultural associations, such as poultry, eggs and sugar.
UCAB believes that, if adopted, the Commission’s proposed safeguards would cost the Ukrainian economy around 250 million USD of lost export revenues. However, if MEPs choose to accept more than 100 amendments identical to those which COPA COGECA and other European agricultural associations demand, the shortfall in Ukraine’s export revenues will be deepened to 5 billion USD.
According to UCAB’s letter to MEPs, the year 2024 will be difficult for Ukraine not only in terms of withstanding Russia's ongoing military onslaught. The country runs an exceptionally high current account deficit, beyond the one experienced in the wake of 2008-2009 financial crisis, and significant budget deficit, increasing the risk of currency devaluation by 50%. Last year, Ukraine’s agricultural exports generated 61% of the country’s currency revenues, out of which the EU accounts more than half. Hence any proposals to limit Ukrainian agricultural imports to the European market may spell disaster for the Ukrainian economy.
“Ahead of a truly crucial vote on the Commission proposal on March 7, we ask you to remember the importance of the agricultural sector of Ukraine for the country’s economic resilience” says the UCAB letter.
