Latest news with #EUTrade
Russia Today
23-05-2025
- Business
- Russia Today
EU to roll back Ukraine trade perks
EU member states have approved the reimposition of import quotas on Ukrainian agricultural goods, European Commission spokesperson Balazs Ujvari has said, as cited by Euroactiv. The current duty-free trade regime is set to expire on June 5. Brussels abolished tariffs and quotas on Ukrainian agricultural produce following the escalation of the Ukraine conflict in February 2022. The bloc adopted special regulations, known as Autonomous Trade Measures (ATMs), aimed at enabling grain and other farm products from Ukraine to reach global markets. However, the influx of cheap Ukrainian produce into Eastern European countries sparked widespread protests among local farmers, particularly in Poland. The latest move, endorsed by a majority of EU nations at a meeting on Thursday morning, introduces a set of 'transitional measures' that will phase out the ATMs and reimpose certain trade controls. Some restrictions have already been reintroduced over the past year, targeting commodities such as oats, sugar, and eggs. The selective reinstatements came in response to months of protests in Poland, Hungary, Slovakia, and other countries neighboring Ukraine, where farmers said they could no longer compete with tariff-exempt goods. Politico previously reported, citing a draft act, that the EU was considering replacing ATMs with revised limits under Ukraine's existing trade framework with the bloc, known as the Deep and Comprehensive Free Trade Area (DCFTA), rather than extending the measures on a yearly basis. Commenting on the latest news, the chair of the Ukrainian Parliament's economic affairs committee, Dmitry Natalukha, told Euractiv that halting the ATMs could cost Kiev more than €3 billion ($3.4 billion), which he said is equal to around 70% of the country's projected total economic growth for the current year.
Russia Today
14-05-2025
- Business
- Russia Today
EU to slap tariffs on Ukrainian imports
The EU is preparing tariffs on Ukrainian agricultural imports when the current duty-free trade regime expires next month, Financial Times reported on Wednesday, citing diplomatic sources. Brussels suspended import duties and quotas on Ukrainian exports to the EU in 2022 following the escalation of the Ukraine conflict. The Autonomous Trade Measures (ATMs) were extended last year and are set to expire on June 6. The EU previously said it would not prolong the tariff-free regime further, after cheap imports flooded Eastern European countries, sparking waves of farmer protests, most notably in Poland. Following the unrest, Brussels introduced an emergency mechanism which allowed tariffs to be reimposed on specific products such as eggs, poultry, sugar, oats, maize, and honey, if imports of these products exceeded average annual volumes. Being part of the ATMs, it is also set to expire in three weeks. The EU is currently working to review and update its overall free trade agreement with Ukraine, the Deep and Comprehensive Free Trade Area (DCFTA). The bloc's officials have suggested that if the talks are not finalized by June 5, 'transitional measures' will be applied, to allow more time for negotiation. According to FT, Warsaw has asked Brussels to 'delay highly unpopular trade talks' with Kiev so as not to stir the sensitive issue ahead of a presidential election on Sunday to 'minimize the chances' that nationalist opposition candidate Karol Nawrocki will prevail. Nawrocki, who is backed by Poland's conservative Law and Justice (PiS) party, has capitalized on domestic discontent over Ukrainian agricultural imports and has been critical of the idea of Ukraine's integration into the EU and NATO. He is currently polling in second place ahead of the May 18 vote. The transitional proposal, recently sent to EU member states, 'would drastically cut the tariff-free quotas,' specifically on maize, poultry, wheat and sugar, FT cited unnamed diplomats as saying. The maize quota will drop on an annual basis from 4.7 million tonnes to 650,000 tonnes, with poultry falling from 57,110 to 40,000 and sugar from 109,000 to 40,700, according to the outlet. Ukraine's government estimates that the cancellation of free-trade quotas would reduce its revenues by about €3.5 billion ($3.9 billion) a year.
Yahoo
14-05-2025
- Business
- Yahoo
FT: EU wants to introduce higher tariffs on Ukrainian imports
The Financial Times, citing informed sources, has reported that the European Union may impose significantly higher tariffs on Ukrainian imports in a matter of weeks. Source: Financial Times Details: The sources indicated that the decision to impose higher tariffs on Ukrainian imports was linked to plans to end the special duty-free regime introduced in 2022 after Russia's full-scale invasion of Ukraine. According to the sources, this decision was made after Poland initiated the protection of EU farmers. The EU has a free trade agreement with Ukraine, but after Russia launched its invasion in 2022, it temporarily suspended the remaining duties. These agreements expire on 6 June 2025, and the EU plans to replace them with what are known as transitional measures while the parties update their overall trade agreement. However, informed diplomats said that the transitional measures proposal recently presented to EU member states would be significantly reduced, including quotas for duty-free imports of agricultural products that are critical for Ukrainian farmers and the budget. When duty-free trade was introduced in 2022, it applied to Ukrainian products – poultry, wheat and sugar, most of which were transported via EU countries to Africa and Asia. However, farmers and politicians in Poland, France and other EU countries soon blamed Ukrainian exports for driving down domestic prices, and the issue has become dominant in Polish politics. The diplomats said that on the eve of the presidential elections, Warsaw asked the European Commission to postpone trade negotiations with Kyiv in order to reduce the chances of victory for the nationalist opposition candidate Karol Nawrocki. A European Commission representative confirmed to the Financial Times that the agreements would not be resumed, as they were currently working on a review of the free trade agreement between the EU and Ukraine. "The Commission is also looking into possible transitional measures in case the negotiations are not finalised and applied by 6 June," the representative added. Two EU diplomats reported that the European Commission's transitional measures include the division of the annual duty-free quota into 12 monthly parts in order to reduce imports during the negotiation period. They said maize, sugar, honey and poultry would be the most affected. The annual maize quota will be cut from 4.7 million tonnes to 650,000 tonnes. The poultry quota will be reduced from 57,100 tonnes to 40,000 tonnes, and sugar from 109,000 tonnes to 40,700 tonnes. Bernd Lange, chair of the European Parliament's Trade Committee, believes that this is "a really bad signal for Ukraine". Background: Back in late April, European Pravda reported that the European Commission did not plan to extend the autonomous trade measures for Ukraine (trade visa-free regime), which are in effect until 5 June. However, it is planned to ensure a smooth transition to the new scheme, where all trade liberalisation conditions will be enshrined in a free trade agreement between Ukraine and the EU. On 8 May, the European Parliament voted in favour of introducing a preferential export regime for steel and iron from Ukraine after the general autonomous trade preferences for Ukrainian exports to the EU expire on 6 June 2025. Support Ukrainska Pravda on Patreon!
CNA
08-05-2025
- Business
- CNA
EU seeking new alliances as it braces for potential US trade fallout, says its trade chief
SINGAPORE: The European Union has been looking to forge new alliances, even as its economic partnership with the United States is in jeopardy, said European Trade Commissioner Maros Sefcovic on Wednesday (May 7). He told CNA that his phone has been ringing off the hook from countries seeking to make deals with the bloc after US President Donald Trump announced sweeping tariffs on imports on Apr 2. 'Our phones are ringing permanently and we very much welcome that, because we want to make sure that we will forge new partnerships, new cooperation, and accelerate all our free trade agreements which are currently being negotiated with our partners,' Sefcovic said. SHIFT IN GLOBAL TRADE Global trade 'has significantly changed' since Trump began his second presidential term in January, he noted. 'I think we just have to accept that there is a new global paradigm shift. With trade, I'm afraid it will not be as it was last year, and therefore, I think we should all kind of push ourselves harder to find mutually advantageous solutions,' he added. However, Sefcovic said he sees the EU having more talks with other countries as a 'silver lining' of the Trump tariffs. 'We are talking to each other with such an openness, and I would say, with such a renewed energy for giving global trade the political backing it needs, to create the frame it needs, and it kind of pushes us into close cooperation with other countries, despite the geographical distance.' He was speaking to CNA in Singapore, where the EU inked a digital trade pact with the Southeast Asian nation. The deal aims to provide greater clarity and legal certainty for consumers and businesses by implementing rules for digital trade and cross-border data flows. Noting that Singapore is a pathfinder for many new areas of cooperation, Sefcovic said the EU views Singapore as a 'very important partner' that can advise the bloc on certain matters. The EU also wants a 'much closer relationship' with members of the Association of Southeast Asian Nations, he added. WORLD'S LARGEST TRADE RELATION But diversifying away from the US is not an easy task. In 2023, transatlantic trade in goods and services between the EU and the US reached €1.6 trillion. This represents approximately 30 per cent of global trade. 'It's a massive trade,' said Sefcovic of the world's largest trade relation. 'So I am absolutely convinced that we should be able - as allies, strategic partners - to find the solution to this problem, and this is what we are doing.' The EU will announce on Thursday more details of its proposed countermeasures to US tariffs, should negotiations with Washington fail. The 27-nation bloc faces 25 per cent US import levies on its steel, aluminium and cars. It also faces reciprocal tariffs of 10 per cent for almost all other goods, which could rise to 20 per cent. The duties have been paused until Jul 8, after Trump announced a 90-day suspension of reciprocal tariffs. Sefcovic previously said US tariffs now cover 70 per cent of EU goods trade to the US. The EU has offered its willingness to negotiate a "zero-for-zero" tariff agreement on industrial goods with the US, and is ready to work together on common standards such as 'the real level of deficits'. Sefcovic said the EU has been holding talks with his US counterparts to understand the aim of the new American trade policy. He expressed belief that goodwill and well-established structures are needed to tackle the underlying issues. 'I think that the whole world was surprised by these high tariffs, which, of course, we do not welcome. We've been very clear,' he added. 'These tariffs are unjust, they're unfair. We cannot accept them as they are.' However, he noted that both the EU and the US share the same interests in wanting to reindustrialise their economy. 'We are both fighting huge dependencies, be it on critical raw materials, be it on precursors for the pharmaceutical production, or be it on some specific technologies if it comes to the semiconductors,' he added.
Bloomberg
06-05-2025
- Business
- Bloomberg
EU Eyes €100 Billion of US Goods With Tariffs If Talks Fail
Supply Lines is a daily newsletter that tracks global trade. Sign up here. The European Union plans to hit about €100 billion ($113 billion) in US goods with additional tariffs in the event ongoing trade talks fail to yield a satisfactory result for the bloc, according to people familiar with the matter.
