The European Union and Ukraine have reached a fundamental agreement on updating the Deep and Comprehensive Free Trade Area agreement. The new terms will regulate trade between the parties after the expiration of the so-called “trade visa-free regime,” which has been in effect since the beginning of the full-scale invasion of the Russian Federation into Ukraine and will end on June 5, 2025.
This is reported by Finway
Main Aspects of the New Trade Agreement
According to the agreements reached, Ukraine will have the opportunity to supply larger volumes of products to EU countries than it did before the onset of the full-scale aggression, but less than during the period of the “trade visa-free regime.” The European Commission presented the key details of the new agreement on June 30 in Brussels.
Under the agreements, it is stipulated that for a number of sensitive goods – in particular, eggs, sugar, and wheat – the export quotas from Ukraine to the EU will be increased, but will remain below historical maximum levels to maintain the stability of the European market. For less sensitive categories of products, quotas will gradually increase, and for certain goods, liberalization will be complete.
“For sensitive goods such as eggs, sugar, and wheat, quotas are increasing but remain below historical trade volumes to ensure the stability of the EU market. For less sensitive products, quotas are increasing moderately, and some goods will be fully liberalized,” explained the essence of the agreements by European Commissioner for Trade and Economic Security Maroš Šefčovič.
Protection of the EU Market and Standard Harmonization
The new agreement includes a mechanism to protect the European market in case the volumes of imported Ukrainian products pose a threat to individual member states or the EU as a whole. In addition, Ukraine commits to gradually adapt its agricultural production standards to EU norms by 2028, particularly in the areas of animal welfare and pesticide use.
European Commissioner for Agriculture Christoph Hansen emphasized that the expanded access of Ukrainian goods to the European market will only occur if the products meet EU standards. This is intended to ensure a level playing field for European and Ukrainian farmers, which is particularly relevant in light of complaints from farmers in Poland, Hungary, and Slovakia regarding non-compliance by Ukrainian producers with certain environmental requirements.
Trade volumes between the EU and Ukraine have more than doubled since the implementation of the trade part of the Association Agreement, rising from 26 billion euros in 2016 to 67 billion euros in 2024. Meanwhile, the EU imports 18 billion euros more in goods to Ukraine than Ukraine exports to the EU.
Maroš Šefčovič expressed hope that after clarifying the terms of the new agreement to the governments of EU member states, particularly Poland, Hungary, and Slovakia, these countries will lift unilateral embargoes on the import of certain categories of Ukrainian products.
At the same time, EU member states have already agreed on a transitional mechanism that allows Ukraine to export products at the volumes that were in place before the beginning of the full-scale invasion until the final completion of negotiations on the new trade agreement.