Support for Ukraine plus protection of European farmers: visa-free trade with the EU has been extended

The EU has once again supported the economy of our country by approving duty-free and quota-free trade for another year. “This recovery confirms Ukraine’s steadfast political and economic support after two years of unprovoked and unjustified Russian military aggression,” – reported on the website of the Council of the EU.

As you know, autonomous trade measures (ATM) for Ukraine, introduced by the EU, are effective from June 2022. Currently, their effect will be extended for the period from June 6, 2024 to June 5, 2025.

Although the main purpose of these measures is to support our country, the EU also took care of farmers and other producers sensitive to imports. In view of the increase in the volume of agricultural products imported from Ukraine, the new ATZ will contain a strengthened protection mechanism. Emergency braking will involve the introduction of tariff restrictions, including the restoration of customs duties, in case of a significant increase in the volume of imports of such products as poultry, eggs, sugar, honey, cereals, over the average volumes of imports for previous years.

It is noted on the EU website, that autonomous trade measures for Ukraine had a positive effect on Ukraine’s trade relations with the EU.

They have ensured exceptionally stable trade flows from Ukraine to the EU – despite the disruptions caused by the war and despite the overall sharp downward trend in Ukraine’s trade.

Context

After the Deep and Comprehensive Free Trade Area (DCFTA) entered into force in 2016, trade between the EU and Ukraine doubled. Currently, the EU is Ukraine’s largest trading partner, accounting for 56% of goods in 2023. Ukraine, on the other hand, ranks 17th among the EU’s trading partners. What do our manufacturers export to EU countries?

According to the Bulletin of the current state of trade relations between Ukraine and the EU in 2023 are:

• grain crops – 19.6% (↓2.1%);
• fats and oils – 12.7% (↓2.5%);
• ferrous metals – 9.2% (↓22.3%);
• seeds and fruits of oil plants – 8.3% (↓33.2%);
• ores, slag – 7.1% (↓30.1%);
• electric machines – 6.4% (↓35.0%);
• wood and wood products – 5.3% (↓22.9%);
• food industry residues and waste – 3.4% (↑55.8%).

As early as 2022, Ukraine overtook the USA as the third largest source of imports of agri-food products to the EU and entered the top three along with Brazil and Great Britain.

In addition to Ukraine, the European Union extended the trade visa-free period for the Republic of Moldova. As you know, with the beginning of a full-scale war, its exports, which depend on transit through Ukraine, have significantly decreased. ATC supports Moldova in its efforts to reorient its trade through the EU.

“The EU has finally approved “trade visa-free” for Ukraine. This is duty-free and quota-free trade for another year. Important support for our producers, exports and economy. We continue integration into the EU at an accelerated pace,” – this is how the economic step of the EU was assessed Prime Minister Denys Shmyhal.