Ukraine's agricultural move: Anti-dumping enforcement against Türkiye

This issue has recently become a significant topic in trade and agricultural policy, as Ukraine has imposed anti-dumping measures on Turkey for certain products. It's important to begin by understanding what anti-dumping actually is. Anti-dumping is essentially a tax imposed by a country to protect its domestic market from the negative impacts of low-priced products coming from foreign countries.

If a country detects that products from another country are being sold below market value, that is, dumped, it imposes additional taxes on these products, but Ukraine's practice is that agricultural products imported from Türkiye cause losses to its producers, which is why Ukraine has implemented anti-dumping duties.

For example, let's say Turkey sells a product in Ukraine for $200, while Ukrainian producers charge $300. At this point, Ukraine detects that Turkish companies are selling the product at a lower price and imposes this tax to protect its own producers. Anti-Dumping enforcement is technically a trade measure, but it's also a diplomatic message. Its implementation among allied countries constitutes an economic warning and demonstrates a desire for economic balance.

At this point, the Ukrainian Ministry of Economy has been conducting an investigation into tomatoes and cucumbers originating from Turkey, especially since 2024. As a result of the decision, it has decided to impose taxes of 25% and 26.9% on tomato imports from Türkiye and 20.1% and 22.8% on cucumber imports. In addition, Ukraine currently applies a 10% customs duty. After this decision, Turkish agricultural exporters, especially those in the Mediterranean region, have been put in strategic danger. I can say that Antalya, which plays a leading role in fresh fruit and vegetable exports, has been put in danger.

Antalya's leading role in fresh fruit and vegetable exports, coupled with its status as one of Ukraine's most important markets, is crucial. Looking back at past years, $57 million of the $80 million in tomato and cucumber exports to Ukraine in 2024 will originate from the Antalya region. Of the tomatoes and cucumbers exported from Türkiye to Ukraine, 68% and 84%, respectively, will go through Antalya. In essence, if measures aren't taken immediately and discussions aren't held with Ukrainian institutions on this issue, the Ukrainian market will be lost for Antalya and other exporters.

At this point, export losses could trigger job losses and, for the regional economy, employment losses in agriculture, logistics, packaging, and warehousing. This will not only impact producers and exporters in Antalya, but will also directly impact producers in Mersin, Adana , and Bursa. Overall, Ukraine's trade practices jeopardize $80 million in exports.

At this point, Turkish and Ukrainian institutions should first initiate negotiations regarding trade initiatives. This decision will cause significant damage to both countries' economies. Furthermore, violations of Free Trade Agreements should be investigated. Legal negotiations can also be initiated with the World Trade Organization. Should negotiations reach an impasse, incentives should be created to ensure our exporters have access to new markets.

On the other hand, Turkey largely prefers Ukraine for corn imports. I can say that Turkey recently accounted for a quarter of Ukraine's total corn exports. Soybeans also constitute a significant purchasing system. Russia's recent increase in corn supply and the start of a large corn harvest may shift purchasing to Russia. A joint meeting with Ukraine on this issue is also possible, as Ukraine will be looking to other countries to increase its corn exports. If anti-dumping duties are reversed, Ukraine could continue to supply its needs.

This issue between the two allied countries requires a swift resolution. Diplomatic steps must be taken to ensure Türkiye doesn't lose the Ukrainian market, which holds a significant place in fresh fruit and vegetable exports. While relations with Ukraine continue to grow in the business world, beyond agriculture, and Turkey will play a significant role in Ukraine's post-war reconstruction, the two countries should also find common ground on agriculture.

Mustafa Metin Kaşlılar \ Timeturk