EBA once again urges authorities to refrain from introducing export duties on oilseeds

08/ 07/ 2025

Listen to online Stop   Member companies of the European Business Association’s Grain and Oilseed Committee express concern over renewed legislative initiatives proposing the introduction of export duties on certain oilseed crops. Specifically, these proposals suggest imposing duties on: Soybeans – at a rate of 10%; Rapeseed (canola) seeds – also at a rate of 10%. According to member companies, the relevant provisions were included in the Comparative Table for Draft Law No. 13157 “On Amendments to the Tax Code of Ukraine in Connection with the Adoption of the Law of Ukraine ‘On Integrated Prevention and Control of Industrial Pollution’” during the preparation of the document for its second reading. The business community urges government authorities to refrain from imposing export duties on agricultural products, as uninterrupted export is critically important to sustaining the agricultural sector during wartime and in the post-war recovery period. Moreover, such measures send a clear signal to international producers and consumers that Ukraine remains a reliable and responsible partner. In addition, experts believe that the proposed export duties contradict the EU-Ukraine Association Agreement. According to Article 31 of the Agreement, both Parties are explicitly prohibited from introducing or maintaining any duties, taxes or measures having equivalent effect applied to the export of goods. Furthermore, paragraph 4 of the Resolution of the Verkhovna Rada of Ukraine “On Certain Measures Regarding the Fulfilment of Ukraine’s Obligations in the Field of European Integration” stipulates that all draft laws containing provisions related to the approximation of Ukrainian legislation to EU law and the fulfilment of Ukraine’s international legal obligations must undergo additional review by the relevant parliamentary committee and the Cabinet of Ministers. However, in the case of Draft Law No. 13157, these requirements appear to have been disregarded. There is also a discrepancy between the title and content of the draft law. While its stated purpose is to amend the Tax Code in connection with the introduction of industrial pollution control legislation, it in fact includes provisions unrelated to that goal – namely, the imposition of duties on agricultural exports. In the context of full-scale war, economic instability, and the urgent need for national recovery, the introduction of export duties on oilseeds is a risky step that contradicts Ukraine’s strategic interests. Such initiatives could seriously undermine the export potential of the agricultural sector, place additional pressure on businesses, and reduce the global competitiveness of Ukrainian products. It is worth noting that the ЕВА has previously called on the Government to avoid any restrictive measures on oilseed exports. On 18 June 2025, the Verkhovna Rada of Ukraine rejected the proposed amendments to Draft Law No. 13134, which also aimed to introduce a 10% export duty on soybeans and rapeseed.

Member companies of the European Business Association’s Grain and Oilseed Committee express concern over renewed legislative initiatives proposing the introduction of export duties on certain oilseed crops. Specifically, these proposals suggest imposing duties on:

• Soybeans – at a rate of 10%;

• Rapeseed (canola) seeds – also at a rate of 10%.

According to member companies, the relevant provisions were included in the Comparative Table for Draft Law No. 13157 “On Amendments to the Tax Code of Ukraine in Connection with the Adoption of the Law of Ukraine ‘On Integrated Prevention and Control of Industrial Pollution’” during the preparation of the document for its second reading.

The business community urges government authorities to refrain from imposing export duties on agricultural products, as uninterrupted export is critically important to sustaining the agricultural sector during wartime and in the post-war recovery period. Moreover, such measures send a clear signal to international producers and consumers that Ukraine remains a reliable and responsible partner.

In addition, experts believe that the proposed export duties contradict the EU-Ukraine Association Agreement. According to Article 31 of the Agreement, both Parties are explicitly prohibited from introducing or maintaining any duties, taxes or measures having equivalent effect applied to the export of goods.

Furthermore, paragraph 4 of the Resolution of the Verkhovna Rada of Ukraine “On Certain Measures Regarding the Fulfilment of Ukraine’s Obligations in the Field of European Integration” stipulates that all draft laws containing provisions related to the approximation of Ukrainian legislation to EU law and the fulfilment of Ukraine’s international legal obligations must undergo additional review by the relevant parliamentary committee and the Cabinet of Ministers. However, in the case of Draft Law No. 13157, these requirements appear to have been disregarded.

There is also a discrepancy between the title and content of the draft law. While its stated purpose is to amend the Tax Code in connection with the introduction of industrial pollution control legislation, it in fact includes provisions unrelated to that goal – namely, the imposition of duties on agricultural exports.

In the context of full-scale war, economic instability, and the urgent need for national recovery, the introduction of export duties on oilseeds is a risky step that contradicts Ukraine’s strategic interests. Such initiatives could seriously undermine the export potential of the agricultural sector, place additional pressure on businesses, and reduce the global competitiveness of Ukrainian products.

It is worth noting that the ЕВА has previously called on the Government to avoid any restrictive measures on oilseed exports. On 18 June 2025, the Verkhovna Rada of Ukraine rejected the proposed amendments to Draft Law No. 13134, which also aimed to introduce a 10% export duty on soybeans and rapeseed.