Will EU membership destroy Ukrainian farmers?

Tuesday, 26 March 2024

The chapter Agriculture and rural development is to be the first one to open in EU accession negotiations with Ukraine.

Given the significant size of the Ukrainian agricultural sector, this chapter may become one of the cornerstones of the negotiations between Ukraine and the European Commission.

Read more about whether the Ukrainian agricultural sector is ready to integrate into the EU internal market in the article by Iana Okhrimenko, Senior Economist at the Center for Economic Strategy -Will Brussels destroy Ukrainian farming? Key myths about EU agricultural policy.

According to the November report of the European Commission, Ukraine is now at an early stage of preparation for accession under the Agriculture and rural development chapter.

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At the same time, the Ukrainian government's screening identifies the implementation level of this chapter as average.

The actual situation, however, is closer to the assessment of the Ukrainian government than the European one.

Success in the EU accession process is not determined solely by the number of laws and regulations adopted in line with the European acquis.

The EU's Common Agricultural Policy (CAP) is regularly updated. So, EU agricultural legislation also requires constant amendments and revisions. Formal compliance of agricultural legislation of candidate countries to the European agricultural acquis plays a secondary role under such circumstances.

Instead, readiness to implement agricultural policy according to the EU's core principles is crucial: a sustainable agricultural model; ensuring a decent quality of life in rural areas; financing based on direct payments rather than production subsidies; adequate investment in rural development and agricultural competitiveness.

Will the EU's Common Agricultural Policy destroy Ukrainian farmers?

In short, no.

The European agricultural model provides enough flexibility to prioritise economic efficiency.

Even after Ukraine joins the EU, Ukrainian farmers will be able to continue focusing on efficient mass production and exports to countries outside the EU.

Moreover, small organic and ecological farmers will have the opportunity to receive additional CAP payments.

Perhaps this could become one of the main lines of Ukraine's negotiating position. Ukraine must ensure economic efficiency so that other EU members have enough resources to focus on so-called "non-economic goals."

In addition, we should be happy about the fact that Ukraine's EU accession negotiations are opening when the EU's CAP is much more focused on the free market than in the past.

For example, when Poland joined the EU in 2004, sugar and dairy quotas were still in force within the EU. Is it worth mentioning how painful EU membership became for those Polish farmers who worked in these sectors?

Despite significant expansion of the regulatory framework in recent years, Ukraine has the chance to integrate into the free market on more advantageous terms than Poland.

The new opportunities opening up for domestic farmers upon Ukraine's EU accession outweigh the discomfort caused by changes.

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