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Letter from The Federation of Employers of Ukraine (FEU) regarding the Extension of Autonomous Trade Measures (ATM) between Ukraine and the EU


News provided by

The Federation of Employers of Ukraine

26 Jan, 2024, 18:41 GMT

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KYIV, Ukraine, Jan. 26, 2024 /PRNewswire/ -- Open Letter from Ukraine Employers to Von der Leyen warns of catastrophic impact by potential EU imports restrictions.

Placing aggressive restrictions on Ukrainian agricultural products could have a "catastrophic impact" on the Ukrainian economy by undermining one of its few remaining supports as the country continues to fight a war of attrition, the Federation of Employers of Ukraine (FEU) told the President of the EU Commission, Ursula von der Leyen, in an open letter, attached.

The FEU, representing more than 8,000 Ukrainian companies and over 3 million Ukrainian workers, urged the Commission to avoid overly aggressive restrictions on Ukrainian products when considering adjustments to the Autonomous Trade Measures, introduced in 2022 to support Ukraine's economy during the conflict.

Dmytro Oliinyk, Chair of the Board of the FEU, expressed his gratitude for the Commission's constructive response to the political pressure blockage of border crossings at the Ukrainian-Polish border by truckers, but, supported by in-depth research, stressed that the actual impact of Ukrainian agricultural products entering the EU had not been substantive and its effects exaggerated beyond what facts can support.

Mr Oliinyk noted that trade barriers to Ukrainian exports could undermine the country's macroeconomic stability, given that the agri-food sector remains one of the few pillars of support for the Ukrainian economy, with its share of exports reaching a historic high of 61 percent in 2023

The letter notes that tougher restrictions would also lead to increased food inflation at a time when price rises are burdening EU consumers. Proposals by neighbouring states to impose regional bans or tracing mechanisms would legalize exiting restrictions that contravene EU law, while complicating the transit of Ukrainian goods within the EU.

Link to the full version of the letter: https://fru.ua/en/news/regarding-the-extension-of-autonomous-trade-measures-atm-between-ukraine-and-the-eu

Please contact ceeteam@fticonsulting.com to arrange an interview with the FEU or any of the parties involved.

About The Federation of Employers of Ukraine

The Federation of Employers of Ukraine (FEU) – is the most influential association of Ukrainian business. Founded in 2002, by now for 20 years the FEU successfully represents and protects the interests of business in Ukraine and internationally. At present, the FEU unites more than 140 sectoral and regional organizations of employers representing the most important sectors of the economy of Ukraine, such as machine building, metallurgy, automotive, aerospace and defense industries, agriculture, chemical industry, IT, media industry, energy, medical and microbiological industry, construction, transport and infrastructure, retail and logistics, light and food industries, tourism, utilities, services sector.

The Federation represents over 8 thousands enterprises, collectively employing near 3 million people and generating about 70 % of the national GDP. The FEU is a member of The Confederation of European Business, shortened as BusinessEurope.

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