European Council extends Ukraine free-trade deal to protect war-torn country’s agri-food sector

14 May 2024 --- The European Council (EC) has approved the suspension of import duties and quotas on Ukrainian and Moldovan exports to the EU for another year as part of continued support for Ukraine more than two years into the war with Russia.

Following talks in Brussels yesterday, the EC decided the EU’s autonomous trade measures for Ukraine will apply from June 6, 2024, until June 5, 2025. They concern the continued suspension of all outstanding customs duties and quotas under Title IV of the EU-Ukraine Association Agreement (DCFTA).

This is a renewal of an original agreement in 2022.

The trade measures will reinforce the protection of EU farmers of “certain sensitive agricultural products,” shares the EC.

The extension also includes two new safeguard mechanisms to protect the EU market and which allow for quick remedial action to be taken in case of significant disruptions to the EU market or the markets of one or more member states.

They allow for regular monitoring and, crucially, for quotes to be imposed if the level of exports of key agricultural and food products exceeds that of the previous three years.

An “emergency brake” will automatically be triggered if import volumes of eggs, poultry, sugar, oats, maize, groats, and honey reach the average yearly imports recorded between July 1, 2021, and December 31, 2023.

No restrictions are planned for cereals such as wheat and barley.Tension and protests
Previously, Europe’s decision to liberalize trade policies for Ukraine has led to tensions in other EU countries like Poland, Hungary and Romania, where farmers and agricultural organizations have staged demonstrations against EU policies perceived to undermine local agriculture and jeopardize their future livelihoods. The trade liberalization measures for Ukraine are a continued source of tension.

European agri-food and farming group Copa Cogeca says the trade measures fall short of addressing EU producers’ and manufacturers’ concerns and warns that imported volumes will likely remain significant and will continue to affect markets.

Furthermore, no restrictions are planned for cereals such as wheat and barley. 

“Solidarity with Ukrainian farmers remains essential and EU farmers and manufacturers remain ready to do their part. One cannot forget that with this autonomous trade measuresATM, the volumes exported to Europe remain substantial and will not be sustainable in the long term, especially with the standards of production and crop cultivation in Ukraine remaining lower than in the EU. For the survival of the EU’s sensitive sectors, it will be essential for European institutions to ensure that the revised Association Agreement will provide the necessary guarantees to preserve EU producers and manufacturers’ economic viability,” says a statement.

Autonomous trade measures for Moldova will also apply until July 2025, which means a temporary suspension of all outstanding customs duties and quotas under Title V of the Association Agreement. 

By Gaynor Selby