EU Extends Duty-Free Trade with Ukraine for Another Year

by Roman Cheplyk
Monday, May 13, 2024
EU Extends Duty-Free Trade with Ukraine for Another Year

The European Union has approved the extension of duty-free trade with Ukraine for an additional year, enabling continued tariff-free and quota-free trading for Ukrainian goods until June 5, 2025

This decision was confirmed by Ukrainian Prime Minister Denys Shmyhal, who emphasized the significant support this provides for Ukrainian producers and the broader economy.

"This extension is crucial for our integration into the EU market at an accelerated pace," stated Shmyhal. The agreement includes safeguards designed to protect European farmers, allowing the European Commission to quickly intervene if imports from Ukraine disrupt the EU market. These safeguards are particularly focused on sensitive agricultural products like poultry, eggs, sugar, oats, cereals, corn, and honey.

Emergency measures can be enacted if imports of these products exceed average volumes from the latter half of 2021 through 2023. If necessary, tariffs could be reimposed to stabilize the market.

Despite these protections, the extension is expected to result in a reduction in Ukrainian export earnings to the EU by approximately €331 million compared to 2023, as noted by Reuters. This figure is a decrease from the initial €240 million projected by the European Commission.

This trade extension follows earlier EU measures that eliminated all tariffs and quotas for Ukrainian grain transit, which led to tensions with EU farmers from Poland, Romania, Hungary, Bulgaria, and Slovakia. In response to these challenges, the EU provided compensation to affected farmers and encouraged a resolution to trade disputes involving Ukrainian grain imports.

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