Latest news with #DeepandComprehensiveFreeTradeArea
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!
Yahoo
23-05-2025
- Business
- Yahoo
EU to restore quotas on Ukrainian farm imports in June, Bloomberg reports
The European Union has agreed to reintroduce import quotas on several Ukrainian agricultural products starting June 6, Bloomberg reported on May 23. The move marks a significant shift in EU trade policy toward Kyiv, as bloc members seek to balance wartime support for Ukraine with growing domestic unrest from European farmers. The quotas were eliminated at the beginning of Russia's full-scale invasion in 2022. Their reintroduction was approved by the European Commission on May 22. While no EU member voted against the new measure, several — including Sweden, the Czech Republic, Denmark, Estonia, Finland, Germany, Ireland, and Lithuania — abstained. The decision comes after protests across Central and Eastern Europe, where farmers argued that the influx of lower-cost Ukrainian goods has depressed local prices and undermined their livelihoods. Polish farmers and truckers in particular have staged repeated blockades at the Ukrainian border since 2023 to protest duty-free imports. Agricultural exports are critical to Ukraine's wartime economy, and EU market access has served as a lifeline following Russia's 2022 invasion, which severely disrupted Black Sea shipping lanes. In response, the EU introduced a duty- and quota-free regime in June 2022 to ease the flow of Ukrainian goods to global markets. The agreement has been extended twice, most recently until June 5. The European Commission said the quotas are temporary and that talks are underway to revise the EU-Ukraine Deep and Comprehensive Free Trade Area (DCFTA), the broader legal framework governing bilateral trade. Read also: Editorial: Russia just said it doesn't want peace in Ukraine. This is what you need to do We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
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.
Yahoo
28-01-2025
- Business
- Yahoo
EU considering new trade regime with Ukraine, media reports
The European Union does not plan to extend the preferential trade agreement framework in its current form past its June 5 expiration date and is considering a new set of rules instead, the Polish news portal RMF24 reported on Jan. 28. While the European Commission allegedly does not plan to reinstate pre-invasion trade rules, it is considering alternatives within the 2016 Deep and Comprehensive Free Trade Area (DCFTA) framework, including quotas for agricultural products and additional safeguards. The EU lifted customs duties on Ukrainian agricultural products in 2022 to alleviate the country's economy amid Russia's full-scale invasion. This led to large-scale protests among European farmers, namely in Poland, who claimed the influx of cheaper Ukrainian products was threatening their businesses. The newly proposed framework would establish specific export and import volumes, potentially aiding Ukraine's integration into the EU single market while addressing concerns from member states about agricultural imports. European Agriculture Commissioner Christophe Hansen reportedly noted widespread support among agriculture ministers for transitioning to a "more stable DCFTA agreement" instead of extending the current regime. Preliminary technical negotiations between the EU and Ukraine have reportedly begun, with formal discussions expected soon. The EU's current free-trade scheme has already been updated with an automatic safeguard mechanism for sensitive sectors, such as eggs, poultry, sugar, oats, maize, hulled grains, and honey. Poland has implemented import bans on certain Ukrainian products, such as grain, citing negative impacts on Polish agriculture. Read also: Germany ramps up Russian LNG imports via EU ports, report says We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
Yahoo
28-01-2025
- Business
- Yahoo
EU considering changes to preferential trade terms with Ukraine
The European Commission is reportedly considering not extending Ukraine's current preferential trade regime, which expires in June, and has already started technical discussions on new trade terms. Source: European Pravda, citing the Polish news portal RMF24 Details: The European Commission is reportedly not planning to extend the special preferential trade regime with Ukraine after 5 June. This regime, introduced in 2022 to support Ukraine's economy, is set to expire. However, there are no plans to return to the pre-war trade arrangements, as that would deal a significant blow to Ukraine, whose exports to the EU have increased in recent years. One alternative under consideration is a new agreement within the framework of the Deep and Comprehensive Free Trade Area (DCFTA). This could include setting quotas for certain agricultural products from Ukraine and implementing additional safeguards. This approach could support Ukraine's gradual integration into the EU single market and prepare it for future membership. Quote: "Most agriculture ministers prefer a more stable DCFTA agreement to extending the current regime. They want to move forward with the DCFTA, where new export and import volumes will be defined," said Christophe Hansen, European Commissioner for Agriculture and Food, adding that this would be "the best solution". RMF FM reports that the European Commission has already started technical-level negotiations with Kyiv on a new trade agreement, with formal talks set to begin soon. An unnamed source in the European Commission anticipates that future trade support measures for Ukraine will be more limited, and agricultural imports from Ukraine to the EU may decrease. This shift is partly due to changes in the European Commission's leadership, including the appointment of Slovak Maroš Šefčovič as the new EU trade commissioner, replacing Latvia's Valdis Dombrovskis. Slovakia's stance on trade with Ukraine is more aligned with Poland's position. Sources in the European Commission say the issue is highly sensitive, as the EU seeks to balance maintaining favourable conditions for Ukraine's economy amid the war with concerns about European farmers' reactions. Background: Poland recently announced its intention to link negotiations on extending the liberalised trade of agricultural products with Ukraine to discussions on the EU's trade agreement with South American countries (Mercosur). On 13 May 2024, the EU Council, after lengthy and intense negotiations, approved an extension of preferential trade with Ukraine for another year until 5 June 2025. Unlike the previous two years, the extension includes restrictions, following protests from farmers. Support UP or become our patron!
