“EU and Ukraine reach agreement on new trade terms: what’s expectedThe European Commission and Ukraine have reached a principal agreement on the revision of the free trade area, which will
facilitate Ukraine’s integration into the EU single market. The modernized agreement includes a level playing field, safeguard
clauses, and increased trade flows, taking into account the sensitivity of agricultural sectors.
”, — write: unn.ua
The European Commission has concluded negotiations with Ukraine on the revision of the Deep and Comprehensive Free Trade Area (DCFTA) between the EU and Ukraine. The agreement in principle on the revision of the trade liberalization provisions within the Association Agreement marks a new stage in establishing a long-term, predictable, and mutual system within the broader context of Ukraine’s accession process. It also fully takes into account the sensitivity of certain agricultural sectors, an issue raised by EU member states and farmers.
This revision, as indicated, “contributes to Ukraine’s gradual integration into the EU single market and illustrates that the EU’s commitment to supporting Ukraine is as strong as ever.” “Once adopted, the revised DCFTA will benefit both sides, providing a basis for long-term economic certainty and stable trade relations,” the European institution noted.
“Thanks to this modernized agreement, we are protecting trade flows from Ukraine to Europe and to global markets. And we are also building bridges of resilience and economic solidarity in the face of Russia’s unjustified aggressive war. At the same time, we continue to protect the interests of our farmers. Ukraine’s place is in the family. We remain committed to a path of mutual growth and stability, leading to its full integration into our Union,” commented European Commission President Ursula von der Leyen on the decision.
What is envisionedThe modernized agreement, as reported, is built around three key pillars:
- level playing field: new market access is conditional on Ukraine’s gradual alignment with relevant EU production standards, such as animal welfare, pesticide use, and veterinary drugs. Ukraine is expected to report annually on its progress in this regard. This approach aligns with the logic of Ukraine’s EU accession process and the adoption of the EU acquis;
- robust safeguard clause: both sides will have the ability to activate a protective mechanism, allowing for appropriate measures to be taken in situations where imports may cause adverse effects for either party. In the case of the EU, an assessment of possible disruptions can be carried out at the level of one or more Member States;
- expanded trade flows: the revised agreement balances support for Ukraine’s trade with the EU while fully considering the sensitivities of certain EU agricultural sectors and stakeholders. The agreed market access varies: for the most sensitive goods, such as sugar, poultry, eggs, wheat, corn, and honey, there is only a slight increase compared to the original Deep and Comprehensive Free Trade Agreement; for other goods, improvements have been made to benefit both sides based on our complementary markets; and finally, for some non-sensitive goods, full liberalization has been agreed upon.
Both sides, as indicated, also agreed to explore measures that will help Ukrainian exporters access their traditional markets in third countries. In addition, the EU and Ukraine also agreed to review the situation in the context of their progress in economic integration and accession prospects, the European Commission noted.
Next stepsBoth sides will now work on refining the technical elements of the agreement. EU member states and the European Parliament will be informed of the details of the agreement in the coming days.
Subject to final legal review of the agreement in principle, the EU and Ukraine will proceed with their respective procedures for official approval of the revised DCFTA.
From the EU side, the European Commission, as stated, will approve a proposal for a decision by the EU Council to adopt the agreement. After that, the agreement will be officially adopted by the EU-Ukraine Association Committee.
SupplementThe so-called autonomous trade measures (ATMs), which abolished customs duties on Ukrainian goods, have been in force since Russia’s full-scale invasion of Ukraine in 2022 to allow Ukraine to export its agricultural products by land.
But EU countries bordering Ukraine, including Poland, Hungary, Romania, and Slovakia, complained that Ukrainian imports undermined domestic prices and caused unrest among farmers.
The European Commission introduced an “emergency brake” limiting the import of food products such as eggs, poultry, sugar, oats, corn, cereals, and honey, which can be activated once the import level exceeds a certain threshold.
The measures ended on June 5 and were not extended this time. The EU and Ukraine returned to the pre-war trade quota regime on June 6.
“Something in between”: the EU spoke about new agricultural import quotas for Ukraine06.06.25, 14:49 • 2672 views