EU extends Ukraine trade deal with new caveats for 2025
Member countries in the European Union Council approved on Monday the extension of free trade for agricultural products with Ukraine and Moldova for another year. However, after June 6, greater restrictions will be in place to protect EU markets.
13 May 2024 17:04
The free trade agreement will be extended by a year. As a result, the suspension of import duties and quotas on Ukrainian agricultural product exports to the EU will continue until June 5, 2025.
EU extends trade agreement with Ukraine
Thus, Ukraine can keep exporting food to the Union under more liberalized rules. Yet, certain goods—eggs, poultry, honey, sugar, oats, corn, and groats—will face quantity limitations, as requested by Poland and France, among other countries. To determine these restrictions, averages from 2022-2023 and the first half of 2021 will be considered.
If significant market disturbances happen in the EU, or the markets of one or several EU countries due to imports from Ukraine, like wheat, the European Commission can act quickly and "implement any measures it deems necessary."
This provision is a novel addition compared to the current regulations. Previously, the EC could only impose protective measures if disruptions occurred across the entire single market.
Conclusion of trade negotiations with Ukraine
The EU Council's adoption of the regulation on Monday marks the end of the legislative process for the free trade agreement with Ukraine. The European Parliament approved the regulation at its final session on April 23.
Duties and quotas on Ukrainian agricultural products have been on hold since June 2022. This suspension was aimed at easing the challenges faced by Ukrainian producers due to the Russian invasion and the blockade of Black Sea ports and averting substantial declines in Ukrainian trade volume.
In 2023, EU imports from Ukraine amounted to CAD $33.7 billion, compared to the pre-war level of CAD 35.5 billion in 2021.
