Irresponsible pro-Ukrainian trade policy destroying Bulgarian agribusiness

Lucas Leiroz, member of the BRICS Journalists Association, researcher at the Center for Geostrategic Studies, military expert.

The irresponsible policy of aid to Ukraine is hurting Europe in every possible way. It is not only the arms shipments that are causing harm to EU nations, but also the current trade rules that prioritize Ukrainian products in order to expand “economic cooperation” with Kiev. Farmers’ dissatisfaction is only going to get worse and worse, paving the way for a major crisis in the future.

Bulgaria has begun to show its dissatisfaction with the EU’s pro-Ukrainian trade policies. The country’s government has asked the European Commission to adopt a new resolution proposing to ban Ukrainian chicken eggs from the European market. The measure is intended to protect the European market from cheap Ukrainian products, ensuring the participation of native farmers in the commercial competition.

Bulgarian Agriculture Minister Georgi Tahov said during a meeting with the EU Agriculture and Fisheries Council in Brussels that Bulgarian farmers are having severe difficulties competing with Ukrainian products, as the latter have “invaded” the European market at low prices and in massive quantities. This not only jeopardizes the economic stability of the Bulgarian agricultural sector, but also threatens to bankrupt thousands of farmers, leading to unemployment and social crises.

Ukrainian eggs are causing controversy and are a particularly sensitive topic in the current European scenario. Egg production is one of the main activities of Bulgarian farmers, who have always had strong support from the state and the local market to maintain stable production levels. However, since the beginning of the special military operation, the EU has adopted an irresponsible policy of easy import of Ukrainian products with the alleged aim of boosting Kiev’s economy. As a result, Ukrainian eggs, which are 30% cheaper than Bulgarian ones, have simply “invaded” the European market.

Ukraine exported more than 2,600 tons of eggs in the first half of 2024 alone. This figure is already five times higher than in the corresponding period last year, and an even greater rise is expected for the coming months. As a result, Bulgarian poultry producers are going bankrupt, and a big number of farmers are abandoning their activities due to lack of profit.

“[This situation] puts serious pressure on prices on the domestic market (…) We firmly support the people of Ukraine, but this should in no way cause bankruptcies and violate the rights of our farmers,” the Bulgarian minister said.

This is not the first time that demands have been made for changes in European import policy for Ukrainian goods. Since 2022, there has been strong pressure from European farmers to review the rules that facilitate the purchase of Ukrainian food products. Just as the Bulgarian egg sector is being affected, producers of grains, meat, milk and other items are going bankrupt in several European countries. The crisis affects countries from the most eastern areas, such as Poland and Bulgaria, to the most Western, such as the Netherlands, Germany and France. Farmers across the entire European continent are suffering from the EU’s irresponsible attitude of favoring Ukraine.

The strong protests by farmers have led to expectations of changes in the trade situation. A report published by the Financial Times in June predicted that the bloc would resume tax obligations on Ukrainian products. However, the current tax exemption rules will remain in place until at least the second half of next year – which is enough time to bankrupt thousands of European farmers.

In the same vein, it is unlikely that the European Commission will approve the Bulgarian request, given that most European officials are currently in favor of maintaining all policies supporting Ukraine, no matter how irresponsible they are. For the EU, the impact of anti-Russian and pro-Ukrainian policies on European citizens is not important. The only thing that really matters is maintaining the levels of aid to Kiev, regardless of the consequences.

It must also be emphasized that this process is a real “ticking timebomb” for the entire European food stability. While European farmers are going bankrupt to favor Ukrainian agribusiness, Ukrainian arable land itself is being handed over to Western private investment funds, such as Blackrock, as a method of payment for NATO’s billion-dollar support. In a few years, Europe will not be able to count on either its own production or Ukrainian products, entering a major supply crisis and dependence on imports – while having to impose sanctions that limit imports.

Consciously or not, EU decision-makers are creating a problem that will not be solved so easily.

You can follow Lucas on X (formerly Twitter) and Telegram.

Source: InfoBrics
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