On Monday 30 June, the European Commissioner for Trade, Maroš Šefčovič, announced an agreement in principle between the EU and Ukraine on a framework for future trade, particularly regarding agri-food products. The two parties have found common ground to give favourable treatment to Ukraine’s exports to the EU, while at the same time protecting farmers in several countries who fear this could result in an excessive influx of Ukrainian products.
“Today’s agreement in principle is balanced, fair and realistic. It represents the best possible outcome under difficult geopolitical conditions”, insisted Maroš Šefčovič. Technical work still needs to be done to define the exact contours of the agreement, in particular the specific quotas.
Expanded quotas. In principle, at least, the compromise reached for agricultural products is as follows: the import tariff quotas for certain Ukrainian products have been increased compared to the trade agreement currently in force (DCFTA) that was signed in 2016, but are lower than the volumes recorded after the application of the autonomous trade measures (ATM) in 2022. This applies to Ukrainian eggs, sugar, wheat, poultry, maize and honey.
However, the bar can be set higher or lower for these quotas, since the DCFTA quotas have been progressive since 2016.
In a reciprocal manner, Kyiv should also increase tariff quotas on pork, poultry and sugar from the EU.
The agreement provides for greater or total liberalisation for a number of other products, including in the agri-food sector. This is the case for whole milk powder, grape juice and mushrooms, for example.
Safeguard clause. In the same way as for the ATMs, the two parties have also agreed a safeguard clause in the event of a negative impact from liberalised imports. This can be triggered if the situation worsens in one or more Member States only, as decided under the second version of the ATMs.
Alignment of standards. However, the increased quotas in comparison to the current situation will be granted on the condition that Ukraine gradually aligns its standards on animal welfare or pesticide use with those of the EU by 2028.
Accompanying measures. The EU is also committed to helping Ukrainian exporters get their products onto world markets, especially those countries where they have lost market share since the war. (Original version in French by Léa Marchal)