EU and Ukraine are negotiating to improve trade conditions after June 5

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The Ukrainian Government, together with the European Commission, is negotiating or updating the preferential trade regime with the EU to avoid returning to the regime that has been in force by 2022, which can reduce Ukrainian exports to the EU by $ 1.5 billion.

Source: “European Truth”

Details: If a new EU decision is not made by June 5, the “default” will resume the provisions of the Association Agreement – which, according to experts, threatens a significant reduction in Ukrainian exports to the European Union.

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The losses for the Ukrainian economy in this case are estimated at $ 1.5 billion or almost 4% of total exports, according to the study of Veronica Movchan (Institute for Economic Research) and Ricardo Juzhchi (Berlin Economics).

However, the European Commission firmly supports the preservation and improvement of trade regime.

In particular, the President of the European Commission Ursula von Der Lyen during negotiations with the Prime Minister of Ukraine Denis Shmigal on April 9 assured that new parameters of trade between Ukraine and the EU would be better than those that operated until 2022.

As it is noted, this is planned by reviewing the current free trade regime – in accordance with Article 29 of the Association Agreement.

The Ukrainian side emphasizes that the format of the future arrangement is not fundamental. The main thing is to keep and strengthen access of Ukrainian goods to the European market.

“For us, it is not much important to which the future trade regime between Ukraine and the EU will be spelled out. Whether it will be autonomous preferences, as it was so far, or the free trade regime, expanded in accordance with Article 29 – for us a fundamental result, not” cheeks “, – the government said.

Recall:

• On May 13, 2024, the EU Council, after a long and intense negotiation process, approved the continuation of preferential trade with Ukraine for another year – until June 5, 2025.
• With regard to the further format of Ukraine’s trade relations with the European Union, preliminary agreements were established that the conditions of duty -free trade would be integrated into the Association Agreement with the EU.
• In February 2025, the first Viceremierk Yulia Sviridenko at a joint meeting of the European Commission and the Cabinet of Ministers of Ukraine stated that the first task of Ukraine in 2025 was to complete consultations on liberalization of trade with the EU in accordance with Art. 29 Association Agreements.

Read more in the EU: a new era of trade with the EU: that will be replaced by “autonomous preferences”. The article was published in the special pro -prosekt “Trade Wars”, which is supported by the law firm “Ilyashev and partners”.