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EU explains what comes next for Ukraine as trade liberalisation nears expiry

EU explains what comes next for Ukraine as trade liberalisation nears expiry

Yahoo3 days ago

Transitional measures approved by the European Commission on 22 May will take effect from 6 June 2025 following the end of the autonomous trade measures (ATM), which provide a preferential trade regime for Ukrainian exporters. These measures will grant access to tariff quotas within the existing Deep and Comprehensive Free Trade Area (DCFTA) between Ukraine and the EU.
Source: European Commission spokesperson Balazs Ujvari, as reported by a correspondent of European Pravda
Details: Ujvari said the transitional measures will take effect on 6 June to replace the trade visa-free regime with Ukraine, returning Ukrainian exporters to tariff quotas within the framework of the existing free trade area between Ukraine and the EU.
"The Commission is currently working on the review of the EU-Ukraine Deep and Comprehensive Trade Area (DCFTA), with a view to offering longer-term predictability and stability to EU and Ukrainian operators, including in the perspective of the accession of Ukraine to the EU," he said.
Ujvari notes that transitional measures will remain in place until Ukraine and the EU complete negotiations on amendments to the existing DCFTA. The revised agreement will include long-term conditions for Ukrainian exporters to the EU, incorporating elements of trade liberalisation.
"In order to avoid a possible cliff-edge scenario on 5 June when the ATMs expire, the Commission has prepared transitional measures that will be in place until the DCFTA review negotiations are finalised. These measures take the form of an Implementing Act, which Member States voted on today [22 May] at a meeting of the Committee for the Common Organisation of Agricultural Markets," the spokesperson said.
This act, the text of which is available to European Pravda, will provide access to tariff quotas for products originating from Ukraine under the current DCFTA.
"The volumes of the quotas available until the end of 2025 will amount to 7/12 of the normal yearly volumes, given that they will be open as of 6 June only and therefore be open for 7 months only this year," Ujvari said.
"Additionally, the management of certain quotas normally managed with licences will temporarily switch to a lighter management mode ('first come first served') to ensure that imports from Ukraine benefit from the preferential trade regime under the DCFTA as of the first day the ATM ceases to apply (6 June)," he added.
In simple terms, Ukrainian products that required export licences to the EU before 2022 are temporarily exempt from this requirement.
Quotas will be allocated on a first-come, first-served basis and will be exhausted as Ukrainian exporters conduct foreign economic operations.
Background:
European Pravda previously reported that the European Commission adopted a list of transitional measures on Ukrainian exports to the EU on 22 May, which will take effect on 6 June 2025 following the expiry of autonomous trade measures for Ukraine.
Back in late April, European Pravda reported that the European Commission did not plan to extend the ATM regime for Ukraine, which remains in effect until 5 June, but would ensure a smooth transition to a new scheme in which all trade liberalisation conditions will be embedded in the EU-Ukraine Free Trade Agreement.
The European Parliament voted in favour of introducing a preferential regime for the export of Ukrainian steel and iron from 6 June 2025.
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