Turkey imposed a 130% duty on grain: how it will affect Ukraine
As of May 1, 2023, Turkey imposed a duty on imported grain - wheat, barley and corn. It is these crops that the country actively receives from Ukraine, being their largest importer. Nevertheless, the Ukrainian Ministry of Agriculture assures that our country will not suffer from Turkey's actions.
The rate of the barrier duty was 130% instead of zero. This is reported in the official Turkish newspaper T.C. Resmi Gazete.
In this way Turkey plans to protect local agricultural producers. Imported products due to the application of the duty will become noticeably more expensive than Turkish products.
At first glance, the decision concerns Ukrainian products. After all, according to customs data, from January to March 2023, 17.7% of all wheat from Ukraine and 42.1% of barley was exported to Turkey.
Nevertheless, as explained in the Ministry of Agrarian Policy of Ukraine, the Turkish duty will not affect the sales of Ukrainian agricultural products, as the Ukrainian grain is mainly used for processing and subsequent sale to third countries. In this case, the duty is not imposed on it.
The ministry explained that Turkey has two customs regimes for imports at once. These are:
- regime for products that are used for domestic consumption - it is for them the duty rate was raised from 0% to 130% (affects only about 5% of Ukrainian imports into this country);
- for products that go on sale to third countries before or after processing (the remaining 95% of Ukrainian products in Turkey).
However, Turkey is not the first country that restricts the supply of agricultural products from Ukraine. For example, the European Commission plans to temporarily ban food imports from Ukraine to five EU countries from May 2. This decision should replace the unilateral ban imposed by Poland, Bulgaria, Slovakia, Romania and Hungary.
has already come up with a new reason for not extending the "grain agreement" and blamed Ukraine.
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