On March 18, the European Parliament held hearings for the first time since the start of Russia's full-scale invasion on the benefits of the EU-Ukraine agricultural trade for Europe. The event, organized under the auspices of MEP Karin Karlsbro, brought together European agro-food industry associations, MEPs, representatives of the European Commission, and EU member states to discuss the benefits of importing Ukrainian agricultural products.

"If the EU and Ukraine fail to reach a new trade agreement before the expiration of EU autonomous trade measures (ATMs) on June 5, preserving the current terms and volumes of trade, it will be an economic shock for Ukraine. The cost of such a shock is estimated at 3-3.5 billion euros, or up to 2.5% of the country's GDP," emphasized UCAB President Alex Lissitsa in his opening speech.

Since the introduction of autonomous trade preferences (ATP), EU support has been crucial for Ukraine's agricultural sector and national economy. By temporarily suspending tariffs and tariff quotas under the DCFTA, the EU compensated for the loss of Ukraine's most traditional markets in the Global South, particularly in North Africa, China, and South Asia.

Last year, the agricultural sector accounted for about 60% (~$25 billion) of all foreign exchange earnings from exports, allowing the agro-food sector to generate nearly 16% of Ukraine's GDP. In 2024, the EU's share of Ukrainian agricultural exports reached about 52%, or $12.83 billion. Therefore, maintaining open agricultural trade with the EU is now essential for ensuring Ukraine's economic resilience.

“The dramatic events of the past weeks have shown that the security of Ukraine and Europe have become inseparable. Ukraine is grateful for the EU's support and clear stance, where Ukraine is part of the European Union's security program. But security means not only military aspects and defense but also food and economic security. Therefore, we hope for balanced decisions that will demonstrate that the future prosperity of the EU and Ukraine is also indivisible," noted Alex Lissitsa.

For her part, MEP Karin Karlsbro pointed out that the European Parliament is concerned about the lack of clarity regarding trade between Ukraine and the EU after the expiration of autonomous trade preferences on June 5. The European Parliament clearly expressed this in its resolution of March 12 in support of Ukraine. “MEPs urge the European Commission to immediately begin negotiations with Ukraine on a bilateral trade agreement based on Article 29 of the Association Agreement, which would allow the preservation and gradual liberalization of agricultural trade flows,” emphasized Karin Karlsbro during her speech.

Throughout the event, numerous expressions of support for Ukraine were voiced, along with recognition of the strategic importance of maintaining open trade in agricultural products between Ukraine and the EU. Here are the key messages from the participants:

1. Sandra Kalniete, Member of the European Parliament (Latvia, European People’s Party): "Both Ukraine and the EU need to seek solutions based on analysis rather than emotions, as discussions about Ukraine’s agricultural sector too often involve manipulations bordering on propaganda. Given the concerns of EU farmers about the situation in the agricultural market, it is crucial to foster a constructive and forward-looking dialogue that is mutually acceptable for both sides—not only from a business perspective but also politically."

2. Yuriy Sharanov, President of the European Association of Industrial Sugar Consumers (CIUS): “Europe faces a chronic sugar deficit and requires imports of 2–3 million tons annually. Ukrainian sugar plays a crucial role in stabilizing supply chains and maintaining a positive balance in EU agri-food exports. From 2022 to 2024 alone, the EU imported nearly 1 million tons of Ukrainian sugar, helping to sustain over 400,000 jobs in 15,000 companies represented by our association.

Sugar is a strategically important raw material, not a sensitive commodity. Uninterrupted access—whether through free trade or quotas starting from 500,000 tons – is critical for ensuring the competitiveness of European industry and supporting Ukraine’s recovery.”

3. Prof. Stephan von Cramon-Taubadel (University of Göttingen) presented findings demonstrating that Ukrainian sugar imports in 2022–2024 did not lead to a decline in EU sugar production. On the contrary, they helped mitigate the worst effects of the sugar shortage in the European market. The full study is available at https://bit.ly/4ispdyO.

4. Vasile Varvaroi, President of the Romanian Grain Association, Regional Director for Eastern Europe at Cargill: “It is essential to dispel the myths suggesting that Ukrainian farmers have significant competitive advantages over their European counterparts. The numbers tell a different story. Before the war, Ukraine produced up to 100 million tons of grain; today, the maximum is 60 million tons. This is hardly a sign of high profitability or an ability to expand production while reducing sown areas and yields. Instead, it signals a crisis, where producers are struggling to grow crops and export them at any cost.

Moreover, since 2024, Ukrainian grain has been virtually absent from the markets of Romania, Poland, and other EU countries—it is instead being redirected via the Black Sea corridor to markets in the Global South. Therefore, calls to restrict trade with Ukraine lack any rational basis.”

5. Kalle Ramvall, Vice President of the European Association for Meat Trade and Meat Processing Industry (UECBV): “European consumers have diverse tastes and preferences for different cuts and categories of meat, requiring flexibility from both importers and exporters. Often, local production is insufficient to meet demand for specific types of meat, such as chicken fillet.

This is why Europe heavily relies on imports. Maintaining open trade is essential for price stability and ensuring supply security. Ukrainian poultry plays a crucial role in this balance. Preserving current trade volumes between Ukraine and the EU is not just a matter of economic benefit but also of food market stability.”