EU to end special trade measures for Ukraine food imports amid threats to European farmers

The European Commission (EC) is not planning to extend its special trade measures with Ukraine, which suspended import duties and quotas on Ukrainian exports amid the Russian invasion. Tariffs will be reinstated on a wide range of agricultural commodities, and are set for enforcement on June 6.

The Autonomous Trade Measures (ATMs) or trade concessions were originally introduced as emergency support immediately after the outbreak of war in 2022.

Olof Gill, an EC spokesperson, confirmed in a statement shared with Food Ingredients First that the Commission is considering “transitional measures” if negotiations are not finalized by the time the measures expire.

“The Commission is not planning to propose an extension of the ATMs beyond that date, because we are currently working on the review of the EU-Ukraine Deep and Comprehensive Trade Area (DCFTA).”

“The objective is to offer longer-term predictability and stability to EU and Ukrainian operators, thus assisting Ukraine’s gradual journey toward EU accession, while also addressing EU sensitivities, particularly in the agri-food sector.”

Key commodities hit

The EC’s decision means that the EU could reintroduce pre-war import duties on key commodities such as eggs, poultry, maize, beef, and wheat for the rest of the year.

“In this review process, our priority will be the gradual compliance of Ukraine with EU production standards, and a safeguard clause that could be triggered to prevent any disturbance to the EU and Ukrainian markets,” Gill tells us.

“In view of the timing constraints, the Commission is also looking into possible transitional measures in case the negotiations are not finalized and applied by June 6.”

Food Ingredients First understands that member states have already received a proposal for a short-term transitional import system, which will apply between June 6 and the day the Commission concludes the ongoing review of tariff liberalization under Article 29 of the DCFTA and new rules come into force.

The DCFTA has been in place provisionally since 2016 and reduces tariffs that European firms face when exporting to Ukraine by making customs procedures easier.

The transitional system will ensure that Ukraine can continue to export to the EU in a “controlled manner.”

Meanwhile, the ATMs have been an “economic lifeline” for Kyiv’s farming sector and an EU gesture of “solidarity and support.”

However, EU member states, most notably Poland and France, have repeatedly pushed authorities to protect the bloc’s farmers, who they say have to reduce domestic prices due to cheap produce coming in from Ukraine.

The EU acknowledged EU stakeholders’ concerns when it extended the ATMs for another year in 2024. It introduced safeguard mechanisms and an “emergency brake” on eggs, poultry, sugar, oats, maize, groats, and honey, which would be automatically triggered if import volumes reached the average yearly imports between July 2021 and December 2023.