EU and Ukraine Forge New Agricultural Trade Path

The European Union and Ukraine have preliminarily revised their trade agreement, now limiting each other’s agricultural exports through restored tariffs and quotas. Changes will fully open EU markets for less sensitive Ukrainian products, while sensitive items face quota constraints. This deal awaits approval from EU member states.

The European Union and Ukraine have reached a preliminary agreement to update their existing free trade pact concerning agricultural exports. According to a statement by the European Commission, the EU had originally removed duties and quotas on Ukrainian farm goods in June 2022, following Russia's invasion. This temporary measure was meant to alleviate export complications after Russia targeted Ukraine's Black Sea shipping routes.

However, concerns arose earlier this month with reports of cheaper Ukrainian grain, poultry, and sugar flooding into EU markets, notably sparking protests in Poland. Consequently, the EU has reinstated its pre-war trade arrangements with Ukraine, reinstituting tariffs and quotas on agricultural trade.

Under the revised terms, the EU market will open to less sensitive Ukrainian products like fermented milk and grape juice. Meanwhile, for other goods like butter and skimmed milk powder, quotas are raised to match recent high levels. Sensitive items such as sugar, poultry, and wheat will have restricted quota increments. Additionally, Ukraine will reciprocate by opening its markets to EU poultry, pork, and sugar, while aligning with EU standards by 2028. The accord, subject to execution approval by EU members, includes a safeguard mechanism and periodic reviews.

(With inputs from agencies.)