Latest news with #DCFTA
Yahoo
4 days ago
- Business
- Yahoo
EU explains what comes next for Ukraine as trade liberalisation nears expiry
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. Support Ukrainska Pravda on Patreon!
Spectator
21-05-2025
- Business
- Spectator
The EU is being timid with Ukraine
Donald Trump may have pulled the world in a decidedly protectionist direction, but the European Union is not doing its part to lead by example and uphold the ideals of free trade – not even with Ukraine, where the strategic case for free and frictionless trade is overwhelming. On 6 June, the EU is expected to end the existing tariff-free regime introduced after the Russian invasion, subjecting Ukrainian imports of agricultural commodities to very tight caps, as stipulated by the earlier Deep and Comprehensive Free Trade Agreement (DCFTA) between the EU and Ukraine. The DCFTA was supposed to be revised by the June deadline, ideally increasing the quotas for tariff-free imports of agricultural products, but the negotiations have stalled for political reasons, for fear that they would disturb Poland's politics ahead of its presidential election. Ukrainian agricultural exports to the EU – wheat, corn, and poultry, among others – skyrocketed after the invasion. The share of Ukrainian wheat exported to the EU, for example, went up from around 2 per cent before the war to over 50 per cent in 2023, in part because of the disruption of exports from Odesa to countries of the Middle East and Africa.
Reuters
14-05-2025
- Business
- Reuters
Pre-war EU-Ukraine trade deal may temporarily return when tariff suspension expires
BRUSSELS, May 14 (Reuters) - The EU is weighing a temporary return to its pre-war trade agreement with Ukraine if a renegotiated deal is not ready to take effect when war-related tariff suspensions expire on June 5, EU diplomats said on Wednesday. The Commission proposed this transitional period would last seven months or until a new deal can come into effect. The EU temporarily waved duties and quotas on agri-food products in June 2022 after Russia's full-scale invasion to help Ukraine compensate for the higher costs of its exports via the EU, after Russia threatened its traditional Black Sea shipping lanes. Ukraine's finance minister said on Wednesday he was in talks with the EU to renew the emergency measures but the Commission said no extension was planned. "The Commission is not planning to propose an extension of the ATMs (tariff suspension)... because we are currently working on the review of the EU-Ukraine Deep and Comprehensive Trade Area (DCFTA)," the spokesperson said. "In this review process, our priority will be the gradual compliance of Ukraine with EU production standards, and a safeguard clause that could be triggered to prevent any disturbance to the EU and Ukrainian markets." EU farmers have repeatedly protested against a sudden influx of cheaper products from Ukraine and the Commission introduced "emergency brakes" on imports of poultry, sugar, oats, maize, groats, and honey if these exceed the yearly average in 2021-2023. The Commission has been eying a sharp cut to Ukrainian sugar imports complaints that large shipments have fuelled a collapse in prices. The EU is Ukraine's largest trade partner and Ukraine is the third largest supplier of agri-food products to the EU, according to EU data.
Yahoo
14-05-2025
- Business
- Yahoo
Pre-war EU-Ukraine trade deal may temporarily return when tariff suspension expires
By Julia Payne and Philip Blenkinsop BRUSSELS (Reuters) -The EU is weighing a temporary return to its pre-war trade agreement with Ukraine if a renegotiated deal is not ready to take effect when war-related tariff suspensions expire on June 5, EU diplomats said on Wednesday. The Commission proposed this transitional period would last seven months or until a new deal can come into effect. The EU temporarily waved duties and quotas on agri-food products in June 2022 after Russia's full-scale invasion to help Ukraine compensate for the higher costs of its exports via the EU, after Russia threatened its traditional Black Sea shipping lanes. Ukraine's finance minister said on Wednesday he was in talks with the EU to renew the emergency measures but the Commission said no extension was planned. "The Commission is not planning to propose an extension of the ATMs (tariff suspension)... because we are currently working on the review of the EU-Ukraine Deep and Comprehensive Trade Area (DCFTA)," the spokesperson said. "In this review process, our priority will be the gradual compliance of Ukraine with EU production standards, and a safeguard clause that could be triggered to prevent any disturbance to the EU and Ukrainian markets." EU farmers have repeatedly protested against a sudden influx of cheaper products from Ukraine and the Commission introduced "emergency brakes" on imports of poultry, sugar, oats, maize, groats, and honey if these exceed the yearly average in 2021-2023. The Commission has been eying a sharp cut to Ukrainian sugar imports complaints that large shipments have fuelled a collapse in prices. The EU is Ukraine's largest trade partner and Ukraine is the third largest supplier of agri-food products to the EU, according to EU data.
Euronews
07-05-2025
- Business
- Euronews
EU Commission prepares for no-deal scenario on Ukraine trade scheme
ADVERTISEMENT The European Commission is preparing for a possible no-deal scenario in negotiations over a future free trade agreement with Ukraine as time is slipping away with the existing scheme set to expire on 5 June. 'There are time constraints, therefore we are also exploring potential transitional measures in case the negotiations for reviewing the Deep and Comprehensive Free Trade Area (DCFTA) are not finalised and applied by 6 June,' a Commission spokesperson said on Wednesday. The spokesperson added that these potential measures are now also being discussed with Ukrainian counterparts. 'I'm not saying transitional measures will definitely be needed,' he continued. 'What I am saying is that we are preparing for that possibility, which I believe everyone agrees is what a responsible European Commission should do.' Currently, trade between the EU and Ukraine operates under the Autonomous Trade Measures (ATMs), which temporarily suspend all tariffs and quotas on Ukrainian agricultural exports. This system was introduced in response to Russia's full-scale invasion of Ukraine in 2022. The ATM scheme, which has already been extended once, is due to expire in June and cannot be renewed again. The Commission has repeatedly stated that it has no intention of extending the ATMs beyond that date anyway. Related EU-Ukraine trade talks enter crucial phase on agriculture The existing arrangement has faced pushback in some EU member states, particularly France and Poland, where farmers have protested against the influx of Ukrainian agricultural imports since trade barriers were lifted. A formal free trade agreement is therefore needed to replace the current system. 'Our priority is to work on the review of the EU-Ukraine DCFTA,' the spokesperson said. However, agriculture remains the most sensitive issue. The EU Agriculture Commissioner Christophe Hansen, recently emphasised that future trade arrangements will not include the same level of quotas and imports allowed under the ATMs. By contrast, Ukraine hopes to maintain the current level of access. 'We would like to begin negotiations with our partners in the European Commission to preserve the existing level of cooperation and enshrine it in the new agreement,' Ukrainian Prime Minister Denys Shmyhal said during a visit to Brussels last month. The EU's goal is to provide long-term predictability and stability for operators in both the EU and Ukraine, the Commission spokesperson said. 'This will strengthen the perspective for Ukraine's gradual movement towards EU accession, as well as addressing sensitivities on our side, notably on the agri-food sector,' he said. Still, the EU is in no rush. 'Things are ready when they're ready,' the spokesperson said, highlighting that the Commission must consult with member states and pointing out that a change in leadership at the Commission has also affected the timeline. 'These things can't always move as quickly as we might like,' he concluded.
