NewsEU greenlights trade boost for Ukraine: Extends duty-free deal

EU greenlights trade boost for Ukraine: Extends duty-free deal

Member countries in the European Union Council approved the extension of free trade for agricultural products with Ukraine and Moldova on Monday for another year. However, after June 6th, more stringent measures will be applied to protect EU markets.

The EU extends the free trade agreement with Ukraine. In the picture, the President of Ukraine, Wołodymyr Zełenski, and the President of the European Commission, Ursula von der Leyen.
The EU extends the free trade agreement with Ukraine. In the picture, the President of Ukraine, Wołodymyr Zełenski, and the President of the European Commission, Ursula von der Leyen.
Images source: © Getty Images | Future Publishing

5:18 PM EDT, May 13, 2024

The free trade agreement has been extended for a year. As a result, the suspension of import duties and quotas on Ukrainian agricultural products exported to the EU will remain in effect until June 5th, 2025.

EU extends trade agreement with Ukraine

This extension allows Ukraine to continue exporting food to the Union under more lenient conditions. Nevertheless, certain products—such as eggs, poultry, honey, sugar, oats, corn, and groats—will face quantity restrictions. Countries, including Poland and France, have advocated these restrictions. The restrictions will be based on average quantities from 2022-2023 and the first half of 2021.

Should significant market disruptions arise in the EU or in particular EU countries because of imports from Ukraine, like wheat, the European Commission has the authority to "implement any measures it deems necessary."

Compared to the previous regulation, this new provision allowed the European Commission to impose protective measures only if disturbances affected the entire single market.

Finalizing the Trade Negotiations with Ukraine

The EU Council's adoption of the regulation on Monday marks the end of the legislative process regarding the free trade agreement with Ukraine. Previously, on April 23rd, the European Parliament had approved the regulation at its last session for this term.

The suspension of duties and quotas on Ukrainian agricultural products started in June 2022. This measure aimed to support Ukrainian producers amid the challenges posed by the Russian invasion and the blockade of Black Sea ports and prevent a significant decrease in the volume of Ukrainian trade.

In 2023, EU imports from Ukraine reached 22.8 billion euros, slightly below the pre-war level of 24 billion euros in 2021.

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