Ukraine Seeks Alternative Wheat Export Route Amid EU Quota Woes
The European Union's quota for Ukrainian wheat imports is running out, but there may be another option for exporters.
The EU's separate quota for imports of Ukrainian wheat has been fully used up, leaving a €95/t duty as the main obstacle to further exports. Ukraine had asked the EC to raise the quota, but the Commission said trade terms between Ukraine and the EU were revised last year and are not currently planned to be changed.
However, Ukrainian exporters can use a separate EU quota for third countries totaling 2.3 mln t, which has been almost unused so far. This quota is open to countries that do not have separate trade quotas with the EU under WTO rules, and the duty on shipments within the quota is €12/t.
This alternative channel could provide a lifeline for Ukrainian wheat exports to the EU. According to Oleksandra Avramenko, head of the European integration committee at the Ukrainian Agribusiness Club (UCAB), the possibility of using this mechanism was discussed as early as August. However, UCAB currently has no updated information on whether Ukrainian wheat is already being exported under the third-country quota.