Deal on trade support for Ukraine with more protection for EU farmers
MEPs and the Council presidency agreed on suspending import duties and quotas on Ukrainian agricultural exports to the EU for another year, until 5 June 2025, to support Ukraine amidst Russia’s continuing brutal war of aggression. These unilateral trade liberalisation measures will help stabilise the Ukrainian economy and facilitate the country’s gradual integration into the EU’s internal market.
Should there be significant disruption to the EU market or the markets of one or more EU countries due to Ukrainian imports, for instance wheat, the regulation ensures that the Commission can take swift action and impose any measures it deems necessary.
As part of reinforced safeguard measures to protect EU farmers, an emergency brake can be triggered for particularly sensitive agricultural products, namely poultry, eggs, sugar, oats, groats, maize, and honey. Negotiators agreed to extend the reference period used as a base for triggering this automatic safeguard, meaning that if imports of these products surpass the average of import volumes recorded in the second half of 2021, and all of 2022 and 2023, tariffs would be re-imposed. In addition, the Commission commits to step up its monitoring of imports of grain, in particular wheat.
The co-legislators also endorsed a commitment by the Commission to discuss permanent tariff liberalisation with Ukraine under the review process of the Association Agreement as soon as the legislative procedure on the temporary liberalisation is completed, and to keep the Parliament closely involved in the process.
Quote
Rapporteur Sandra Kalniete (EPP, LV) said: "The ripple effects of Russia's relentless targeting of Ukraine and its economy are being felt by EU farmers. Under this new agreement with the Council, we have fortified safeguards to protect EU farmers in case of market turbulence sparked by Ukrainian imports. By extending the trade support measures for another year, this agreement is also a testament to the EU's continued solidarity and unwavering support for Ukraine in the face of Russia's brutal war of aggression until Ukraine's victory.”
Next steps
Parliament and Council will now both have to give their final green light to the provisional agreement. Parliament’s plenary is likely to vote on the regulation during the second part-session in April. The current trade measures expire on 5 June 2024, and new regulations should enter into force immediately following this date.
Background
The EU-Ukraine Association Agreement, including the Deep and Comprehensive Free Trade Area, has ensured that Ukrainian firms have preferential access to the EU market since 2016. After Russia launched its war of aggression, the EU put in place autonomous trade measures (ATMs) in June 2022, which allow duty-free access for all Ukrainian products to the EU. These measures were extended by one year in 2023, and in January, the EU Commission proposed to renew the suspension for another year with additional safeguards to protect the EU market. Last month, Council and Parliament reached an agreement on the regulation, but later member states decided to amend the text, creating the need for new negotiations, which ended with the new provisional deal. For Moldova, Parliament recently decided to extend similar measures for another year.
