EU will stop import taxes on Ukraine for one year

EU will stop import taxes on Ukraine for one year.  

To aid Ukraine’s economy during the war with Russia, the European Commission suggested a one-year exemption of import taxes on any Ukrainian commodities not covered by an existing free trade agreement.

Fruit and vegetables will be subject to minimum price requirements, agricultural products will be subject to quotas, and certain industrial goods will be subject to tariffs that were only supposed to be phased out by 2022.

Fertilizers, aluminum goods, and automobiles are all subject to the phase-out, which was laid out in the EU-Ukraine free trade agreement of 2016.

The European Union would also exempt Ukraine from steel import protection measures and lift anti-dumping levies on Ukrainian steel tubes, hot-rolled flat steel products, and ironing boards that the EU presently applies.

On Wednesday, Ukrainian President Volodymyr Zelensky met with European Commission President Ursula von der Leyen to discuss the plan and expressed his gratitude.

“For the time being, this will enable us to preserve economic activity in Ukraine and our national production to the greatest extent feasible. However, this decision must be considered not only in the context of Ukraine,” In a late-night video message, he noted.

“Adequate export of our products to European and worldwide markets will be an important tool in the fight against crises.”

The plan must now be approved by the European Parliament and EU countries to become law.

The European Commission, which controls the trade policy of the EU’s 27 member states, stated that unprecedented measures were taken to help Ukrainian manufacturers and exporters cope with Russia’s invasion.

“Since the beginning of Russia’s aggression, the EU has prioritized keeping Ukraine’s economy running – which is critical to help it win this war and get back on its feet post-war,” said Valdis Dombrovskis Commission Vice President and Trade Commissioner.

Last year, bilateral trade between the EU and Ukraine was more than 52 billion euros ($55 billion), more than doubling before the 2016 free trade agreement.

With the Russian navy cutting off Ukrainian commerce via the Black Sea, the EU has taken steps to aid the land movement of Ukrainian goods, such as relaxing entry requirements for Ukrainian truck drivers.