Quotas on pork imports to Ukraine from the EU exhausted
During January-August, Ukrainian importers utilized quotas for duty-free pork imports from the EU in full. This was reported by the analytical department of the Association of Pigs Breeders of Ukraine (ASU) according to the web portal "Single Window for International Trade" of the State Customs Service of Ukraine.
"As of September 1, 20 thousand Mt of chilled and frozen pork from EU countries were imported into Ukraine. This corresponds to the quota for duty-free supply of pork from EU countries established under the economic part of the Free Trade Agreement. Since these limits were utilized this year, each subsequent kilogram of European chilled pork will cost importers 12% more due to custom duties, and frozen pork will rise in price by 10%, "the Association of Pigs Breeders of Ukraine notes.
"We think that one of the reasons for the revival of import activity at the end of the summer was insignificant remnants of the duty-free quota, which encouraged operators to stock cheaper raw pork materials. Note that this year quotas were utilized within the first eight months, while in previous years this happened closer to the end of the year - in November-December, "analysts say.
In addition to the EU, Ukraine has similar agreements on duty-free pork supplies from Canada and the UK. According to the free trade agreement, Ukraine can import up to 14.4 thousand Mt of Canadian pork, by-products or fat, but so far only 1.3 thousand Mt (9%) have been imported, and the latest deliveries were in May. According to international agreements, the supply of pork in volumes of up to 1.7 thousand Mt from the UK won’t be subject to import duties, but so far, such pork purchases from the UK have not been made.
"If raw pork imports from these countries become economically attractive to the importer, the supply of frozen pork is unlikely to have a significant impact on the domestic pork market. In addition, the expected changes in foreign exchange rates in the fall will also contribute to an increase in the input barrier for raw pork imports," the ASU said.