EU and Ukraine strike less ambitious but ‘realistic' trade deal
A revised version of the Deep and Comprehensive Free Trade Area (DCFTA) – the primary trade framework between the EU and Ukraine – was agreed in principle on Monday, following intensive weekend talks with Ukrainian counterparts, the European Commission announced.
"Ukraine's place is in the family. We remain committed to a path of mutual growth and stability, leading to its full integration in our Union,' European Commission president Ursula von der Leyen wrote in a note after the announcement of the deal.
Since 2022, trade between the two partners has been governed by Autonomous Trade Measures (ATMs), a temporary framework introduced after Russia's full-scale invasion.
The ATMs eliminated all tariffs and quotas on Ukrainian agricultural exports to the EU, offering crucial access to European markets during wartime, particularly for commodities such as grain, maize, eggs, and poultry.
Agriculture Commissioner Christophe Hansen described the ATMs as 'exceptional instruments offering a very high level of unilateral liberalisation on a yearly basis since 2022.'
The new agreement is less ambitious than the previous scheme which expired earlier this month, but aims to strike 'the right balance between supporting Ukraine's trade with the Union and addressing the sensitivities of a number of EU agriculture sectors and related concerns,' Hansen said.
The ATM arrangement had provoked backlash in several EU countries – notably France and Poland – where farmers protested over the surge in Ukrainian imports following the lifting of trade barriers.
'This agreement opens a new chapter in EU-Ukraine trade relations, setting out a long-term, predictable and reciprocal framework,' said EU Trade Commissioner Maroš Šefčovič, calling the deal 'balanced, fair, and realistic.'
Key provisions
While the full text of the agreement has not yet been published, some initial details have been disclosed.
Ukraine has committed to gradually aligning its agricultural production standards—including animal welfare and pesticide use—with those of the EU by 2028, in line with its EU accession aspirations.
Robust safeguard mechanisms will be introduced to protect EU markets, particularly in cases where imports could cause significant disruption at either the EU-wide or national level.
For sensitive products like eggs, sugar and wheat, quotas will be increased but kept below historical trade volumes to maintain market stability. Less sensitive items will see moderate quota increases.
The sensitivity of each product was determined based on past market disturbances and the EU's ability to absorb additional imports, according to the Commission.
Compared to the 2016 DCFTA, the new quotas mark an improvement, though they remain more restrained than the full liberalisation granted under the ATMs.
Some products will be fully liberalised, such as dairy goods like whole milk powder and fermented milk, as well as mushrooms and grape juice.
Ukraine has also agreed to significantly increase quotas for pork, poultry, and sugar imports from the EU, while reducing or eliminating duties on other products. The Commission believes this will enhance export opportunities for EU farmers, particularly in member states bordering Ukraine.
Next Steps
Both sides will now work to finalise the technical aspects of the agreement. The Commission will present the deal to EU member states and the European Parliament in the coming days.
On the EU side, the Commission will propose a Council decision to formally endorse the agreement. Final adoption will take place through the EU-Ukraine Association Committee.
Šefčovič expressed confidence that member states would support the deal, saying: 'Once we present the outcome of these negotiations, engage in detailed explanations, and show how this agreement is beneficial - not only for Ukraine but also for EU farmers - we believe we will have the necessary support.'
He emphasised that the deal brings 'much-needed stability and predictability to EU-Ukraine trade relations,' especially with a view toward Ukraine's future accession to the EU.
The two parties also agreed to revisit this agreement in the coming years, taking into account Ukraine's economic integration and progress on alignment with EU standards.
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