EU extends Ukraine's agricultural trade deal amid new limits
Member countries in the European Union Council have finally approved on Monday the extension of free trade of agricultural products with Ukraine, as well as with Moldova, for another year. However, after June 6th, there will be greater restrictions in place to protect EU markets.
The free trade agreement will be extended by a year. Consequently, the suspension of import duties and quotas on Ukrainian agricultural products exports to the EU will be in effect until June 5th, 2025.
Trade agreement with Ukraine extended by the EU
Therefore, Ukraine can continue exporting food to the Union under more liberal rules. However, certain goods – eggs, poultry, honey, sugar, oats, corn, and groats – will be subject to quantity restrictions, as advocated by Poland and France, among others. These restrictions will be based on the average from 2022-2023 and the first half of 2021.
If significant market disturbances occur in the EU, in the markets of one or several EU countries due to imports from Ukraine, for example, wheat, the European Commission may take swift action and "implement any measures it deems necessary."
This provision is new compared to the current regulation. Until now, the EC could impose protective measures if disturbances occurred across the entire single market.
Conclusion of negotiations on trade with Ukraine
The EU Council's adoption of the regulation on Monday concludes the legislative process regarding the free trade agreement with Ukraine. Previously, on April 23rd, the European Parliament approved the regulation at its last session for this term.
Duties and quotas on Ukrainian agricultural products have been suspended since June 2022. This aimed to alleviate the challenging situation faced by Ukrainian producers due to the Russian invasion and the blockade of ports on the Black Sea, and to prevent drastic decreases in the volume of Ukrainian trade.
EU imports from Ukraine in 2023 amounted to £19.5 billion compared to the pre-war level of £20.6 billion in 2021.
