In addition to what is already offered as part of the trade plank of its association agreement with the EU (implemented since 1 January 2016), Ukraine is now to benefit from further autonomous trade preferences for some of its agricultural and industrial products. The additional preferences will come into effect on 1 October and continue for a period of three years.
After validation of the agreement concluded between the EU Council and European Parliament on 13 September, the regulation on further EU trade concessions for Ukraine will be published on Saturday 30 September and will enter into force on Sunday 1 October.
It will open additional annual zero-duty quotas for three years. These quotas are in addition to those set out in the association agreement for certain agricultural products. The regulation will also enable acceleration in the removal of EU-levied import duties on certain industrial products.
As regards agricultural products, Ukraine will be able to export large quantities of wheat, corn, barley and oats duty-free, as well as barley groats and pellets, processed tomatoes, natural honey and grape juice to the EU.
The liberalisation measures for barley, wheat and corn will be applied from 1 January 2018. EU implementing regulations still have to be adopted on this.
For industrial products, the full removal of import duties is provided for on fertilisers, colourings, pigments and other colouring matters, shoes, copper, aluminium, and television and sound recording equipment.
These additional EU autonomous trade concessions for Ukraine were proposed by the Commission and backed by the EU member states and European Parliament, given the difficult economic situation in Ukraine and the economic reform efforts it has undertaken.
On Friday 29 September, European Commissioner for Trade Cecilia Malmström and Ukraine's Deputy Minister for Economic Development and Trade Nataliya Mykolska hailed this "good news for Ukrainian exporters", which is "an important sign of the EU's continued, tangible economic and political support for the Ukrainian people, the country and its reform efforts".
According to Eurostat, trade in goods between the EU and Ukraine increased over the first six months of 2017. The EU has strengthened its position as Ukraine's top trading partner and now absorbs 40% of Ukraine's total exports.
"This additional trade opening will give a further boost in fostering strong trade ties between the EU and Ukraine, and support further expansion of Ukrainian exports to the EU, following the trade restrictions imposed by Russia", Malmström and Mykolska stated. (Original version in French by Emmanuel Hagry)