The European Union (EU) and Ukraine have agreed on initial conditions that will allow for a review of a free trade agreement with Ukraine and to arrange further agricultural exports from Ukraine, Reuters reports.
Following Russia’s full-scale invasion of Ukraine, the EU temporarily lifted customs duties and quotas on Ukrainian agricultural products in June 2022. This was done to reduce the increase in costs when Russia threatened traditional transport routes in the Black Sea.
However, free trade was suspended in early June this year, as significantly cheaper Ukrainian grain, sugar and poultry meat began to flow into Europe, which in turn sparked protests in EU countries, especially in Poland. Currently, the bloc has returned to limited trade with Ukraine, and trade is restricted by tariffs and quotas.
The amendments adopted on June 30 provide for the full opening of the EU market to less sensitive products,
such as fermented milk products and grape juice, while quotas for butter, skimmed milk powder, wheat, oat and rye groats will reach their highest levels in recent years. For sensitive products, such as sugar, poultry meat, eggs, wheat, maize and honey, quotas will be raised minimally.
Ukraine will fully open its market to EU poultry meat, pork and sugar, and will bring agricultural production legislation, such as pesticide use rules and farm animal welfare rules, into line with EU standards by 2028.
Both sides have the right to introduce restrictions if a threat to the domestic market is identified. The terms of the agreement will also be subject to review.
The agreement still needs to be ratified by EU member states. The bloc is Ukraine’s largest trading partner and Europe’s third-largest supplier of agricultural products.
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