On Tuesday 4 July, the European Parliament gave its green light (566 votes in favour, 96 against and 28 abstentions) to granting temporary autonomous trade preferences for certain Ukrainian agricultural and industrial goods, in addition to what is already offered by the EU in the EU-Ukraine free trade agreement.
On 27 June, the Council of the EU approved the inter-institutional agreement that was concluded on 13 June (see EUROPE 11818) on the draft tabled by the Commission in autumn 2016 to support the Ukrainian economy, which was in a difficult economic situation and struggling with the costs of its reform efforts.
The proposed measures comprise further zero duty import quotas for certain agricultural products, and the partial or total removal of import duties on several industrial products for a period of three years.
During the negotiations, MEPs adopted most of the additional concessions proposed by the Commission, but they reduced the additional quota volume for certain agricultural products.
The future regulation thus provides for the opening of further annual zero duty import quotas for 3,000 tonnes of processed tomatoes (in addition to the existing 5,000 tonnes), 65,000 tonnes of wheat (in addition to the existing 100,000 tonnes), 625,000 tonnes of corn (in addition to the existing 650,000 tonnes) and 325,000 tonnes of barley (in addition to the existing 350,000 tonnes). Urea, a primary material used in fertiliser, does not benefit from preferences in terms of further quota other than those indicated in the EU-Ukraine free trade agreement.
The future regulation also provides for the full removal of import duties on several industrial products such as colourings, shoes, copper and aluminium, as well as television and sound recording equipment.
The package provides for the EU's application of safeguard measures, and it makes the granting of further preferences conditional on Ukraine's respect of the same principles as in the framework of the association agreement (democracy and the rule of law, human rights and fundamental freedoms) as well as on its continued and supported efforts on the fight against corruption and illegal activities.
The Council is now due to adopt the text formally before the end of July in order to enable its implementation by the end of September. (Original version in French by Emmanuel Hagry)