Latest news with #AutonomousTradeMeasures
Saudi Gazette
01-07-2025
- Business
- Saudi Gazette
EU and Ukraine strike less ambitious but 'realistic' trade deal
BRUSSELS — A revised version of the Deep and Comprehensive Free Trade Area (DCFTA) – the primary trade framework between the EU and Ukraine – was agreed in principle on Monday, following intensive weekend talks with Ukrainian counterparts, the European Commission announced. "Ukraine's place is in the family. We remain committed to a path of mutual growth and stability, leading to its full integration in our Union,' European Commission president Ursula von der Leyen wrote in a note after the announcement of the deal. Since 2022, trade between the two partners has been governed by Autonomous Trade Measures (ATMs), a temporary framework introduced after Russia's full-scale invasion. The ATMs eliminated all tariffs and quotas on Ukrainian agricultural exports to the EU, offering crucial access to European markets during wartime, particularly for commodities such as grain, maize, eggs, and poultry. Agriculture Commissioner Christophe Hansen described the ATMs as 'exceptional instruments offering a very high level of unilateral liberalisation on a yearly basis since 2022.' The new agreement is less ambitious than the previous scheme which expired earlier this month, but aims to strike 'the right balance between supporting Ukraine's trade with the Union and addressing the sensitivities of a number of EU agriculture sectors and related concerns,' Hansen ATM arrangement had provoked backlash in several EU countries – notably France and Poland – where farmers protested over the surge in Ukrainian imports following the lifting of trade barriers.'This agreement opens a new chapter in EU-Ukraine trade relations, setting out a long-term, predictable and reciprocal framework,' said EU Trade Commissioner Maroš Šefčovič, calling the deal 'balanced, fair, and realistic.'While the full text of the agreement has not yet been published, some initial details have been has committed to gradually aligning its agricultural production standards—including animal welfare and pesticide use—with those of the EU by 2028, in line with its EU accession safeguard mechanisms will be introduced to protect EU markets, particularly in cases where imports could cause significant disruption at either the EU-wide or national sensitive products like eggs, sugar and wheat, quotas will be increased but kept below historical trade volumes to maintain market stability. Less sensitive items will see moderate quota sensitivity of each product was determined based on past market disturbances and the EU's ability to absorb additional imports, according to the to the 2016 DCFTA, the new quotas mark an improvement, though they remain more restrained than the full liberalisation granted under the products will be fully liberalised, such as dairy goods like whole milk powder and fermented milk, as well as mushrooms and grape has also agreed to significantly increase quotas for pork, poultry, and sugar imports from the EU, while reducing or eliminating duties on other products. The Commission believes this will enhance export opportunities for EU farmers, particularly in member states bordering sides will now work to finalise the technical aspects of the agreement. The Commission will present the deal to EU member states and the European Parliament in the coming the EU side, the Commission will propose a Council decision to formally endorse the agreement. Final adoption will take place through the EU-Ukraine Association Committee.Šefčovič expressed confidence that member states would support the deal, saying: 'Once we present the outcome of these negotiations, engage in detailed explanations, and show how this agreement is beneficial - not only for Ukraine but also for EU farmers - we believe we will have the necessary support.'He emphasised that the deal brings 'much-needed stability and predictability to EU-Ukraine trade relations,' especially with a view toward Ukraine's future accession to the two parties also agreed to revisit this agreement in the coming years, taking into account Ukraine's economic integration and progress on alignment with EU standards. — Euronews
Euronews
30-06-2025
- Business
- Euronews
EU and Ukraine strike less ambitious but 'realistic' trade deal
A revised version of the Deep and Comprehensive Free Trade Area (DCFTA) – the primary trade framework between the EU and Ukraine – was agreed in principle on Monday, following intensive weekend talks with Ukrainian counterparts, the European Commission announced. "Ukraine's place is in the family. We remain committed to a path of mutual growth and stability, leading to its full integration in our Union,' European Commission president Ursula von der Leyen wrote in a note after the announcement of the deal. Since 2022, trade between the two partners has been governed by Autonomous Trade Measures (ATMs), a temporary framework introduced after Russia's full-scale invasion. The ATMs eliminated all tariffs and quotas on Ukrainian agricultural exports to the EU, offering crucial access to European markets during wartime, particularly for commodities such as grain, maize, eggs, and poultry. Agriculture Commissioner Christophe Hansen described the ATMs as 'exceptional instruments offering a very high level of unilateral liberalisation on a yearly basis since 2022.' The new agreement is less ambitious than the previous scheme which expired earlier this month, but aims to strike 'the right balance between supporting Ukraine's trade with the Union and addressing the sensitivities of a number of EU agriculture sectors and related concerns,' Hansen said. The ATM arrangement had provoked backlash in several EU countries – notably France and Poland – where farmers protested over the surge in Ukrainian imports following the lifting of trade barriers. 'This agreement opens a new chapter in EU-Ukraine trade relations, setting out a long-term, predictable and reciprocal framework,' said EU Trade Commissioner Maroš Šefčovič, calling the deal 'balanced, fair, and realistic.' Key provisions While the full text of the agreement has not yet been published, some initial details have been disclosed. Ukraine has committed to gradually aligning its agricultural production standards—including animal welfare and pesticide use—with those of the EU by 2028, in line with its EU accession aspirations. Robust safeguard mechanisms will be introduced to protect EU markets, particularly in cases where imports could cause significant disruption at either the EU-wide or national level. For sensitive products like eggs, sugar and wheat, quotas will be increased but kept below historical trade volumes to maintain market stability. Less sensitive items will see moderate quota increases. The sensitivity of each product was determined based on past market disturbances and the EU's ability to absorb additional imports, according to the Commission. Compared to the 2016 DCFTA, the new quotas mark an improvement, though they remain more restrained than the full liberalisation granted under the ATMs. Some products will be fully liberalised, such as dairy goods like whole milk powder and fermented milk, as well as mushrooms and grape juice. Ukraine has also agreed to significantly increase quotas for pork, poultry, and sugar imports from the EU, while reducing or eliminating duties on other products. The Commission believes this will enhance export opportunities for EU farmers, particularly in member states bordering Ukraine. Next Steps Both sides will now work to finalise the technical aspects of the agreement. The Commission will present the deal to EU member states and the European Parliament in the coming days. On the EU side, the Commission will propose a Council decision to formally endorse the agreement. Final adoption will take place through the EU-Ukraine Association Committee. Šefčovič expressed confidence that member states would support the deal, saying: 'Once we present the outcome of these negotiations, engage in detailed explanations, and show how this agreement is beneficial - not only for Ukraine but also for EU farmers - we believe we will have the necessary support.' He emphasised that the deal brings 'much-needed stability and predictability to EU-Ukraine trade relations,' especially with a view toward Ukraine's future accession to the EU. The two parties also agreed to revisit this agreement in the coming years, taking into account Ukraine's economic integration and progress on alignment with EU standards.
Euronews
30-06-2025
- Business
- Euronews
EU and Ukraine strike less ambitious but ‘realistic' trade deal
A revised version of the Deep and Comprehensive Free Trade Area (DCFTA) – the primary trade framework between the EU and Ukraine – was agreed in principle on Monday, following intensive weekend talks with Ukrainian counterparts, the European Commission announced. "Ukraine's place is in the family. We remain committed to a path of mutual growth and stability, leading to its full integration in our Union,' European Commission president Ursula von der Leyen wrote in a note after the announcement of the deal. Since 2022, trade between the two partners has been governed by Autonomous Trade Measures (ATMs), a temporary framework introduced after Russia's full-scale invasion. The ATMs eliminated all tariffs and quotas on Ukrainian agricultural exports to the EU, offering crucial access to European markets during wartime, particularly for commodities such as grain, maize, eggs, and poultry. Agriculture Commissioner Christophe Hansen described the ATMs as 'exceptional instruments offering a very high level of unilateral liberalisation on a yearly basis since 2022.' The new agreement is less ambitious than the previous scheme which expired earlier this month, but aims to strike 'the right balance between supporting Ukraine's trade with the Union and addressing the sensitivities of a number of EU agriculture sectors and related concerns,' Hansen said. The ATM arrangement had provoked backlash in several EU countries – notably France and Poland – where farmers protested over the surge in Ukrainian imports following the lifting of trade barriers. 'This agreement opens a new chapter in EU-Ukraine trade relations, setting out a long-term, predictable and reciprocal framework,' said EU Trade Commissioner Maroš Šefčovič, calling the deal 'balanced, fair, and realistic.' Key provisions While the full text of the agreement has not yet been published, some initial details have been disclosed. Ukraine has committed to gradually aligning its agricultural production standards—including animal welfare and pesticide use—with those of the EU by 2028, in line with its EU accession aspirations. Robust safeguard mechanisms will be introduced to protect EU markets, particularly in cases where imports could cause significant disruption at either the EU-wide or national level. For sensitive products like eggs, sugar and wheat, quotas will be increased but kept below historical trade volumes to maintain market stability. Less sensitive items will see moderate quota increases. The sensitivity of each product was determined based on past market disturbances and the EU's ability to absorb additional imports, according to the Commission. Compared to the 2016 DCFTA, the new quotas mark an improvement, though they remain more restrained than the full liberalisation granted under the ATMs. Some products will be fully liberalised, such as dairy goods like whole milk powder and fermented milk, as well as mushrooms and grape juice. Ukraine has also agreed to significantly increase quotas for pork, poultry, and sugar imports from the EU, while reducing or eliminating duties on other products. The Commission believes this will enhance export opportunities for EU farmers, particularly in member states bordering Ukraine. Next Steps Both sides will now work to finalise the technical aspects of the agreement. The Commission will present the deal to EU member states and the European Parliament in the coming days. On the EU side, the Commission will propose a Council decision to formally endorse the agreement. Final adoption will take place through the EU-Ukraine Association Committee. Šefčovič expressed confidence that member states would support the deal, saying: 'Once we present the outcome of these negotiations, engage in detailed explanations, and show how this agreement is beneficial - not only for Ukraine but also for EU farmers - we believe we will have the necessary support.' He emphasised that the deal brings 'much-needed stability and predictability to EU-Ukraine trade relations,' especially with a view toward Ukraine's future accession to the EU. The two parties also agreed to revisit this agreement in the coming years, taking into account Ukraine's economic integration and progress on alignment with EU standards.
Yahoo
06-06-2025
- Business
- Yahoo
EU tariffs on Ukrainian goods return after 3 years of war, complicating Kyiv's path to European integration
The European Union is set to reinstate tariffs on Ukrainian agricultural exports on June 6. This is the first time since Russia's full-scale invasion that the EU will not renew an agreement suspending trade barriers between Ukraine and Europe. The end of tariff-free trade comes amid mounting opposition to Ukrainian exports — and Ukraine's EU accession — from eastern European bloc members, including Poland and Hungary. While a transitional agreement will govern trade to the end of 2025, negotiations between Brussels and Ukraine for a more favorable long-term agreement began on June 2, according to European Pravda. The temporary arrangement from June 6 allows for more liberal trade than established under earlier rules. But tariffs will return in full starting in 2026 — unless talks in Brussels succeed in updating the pre-war framework. The talks will test the EU's ability to balance concerns from member states with Ukraine's closer integration into the trading bloc. Read also: Who is Nawrocki, Poland's new president, and what could his narrow victory mean for Polish-Ukrainian relations? The so-called Autonomous Trade Measures (ATMs) were introduced in June 2022 shortly after Russia's full-scale invasion of Ukraine. They removed tariffs that applied to some Ukrainian agricultural goods under a 2016 trade agreement, including sugar, honey, wheat, and poultry. Along with "solidarity lanes," which established alternative logistics routes, the 2022 trade measures facilitated the export of Ukrainian agricultural goods by land, bypassing Ukrainian ports blockaded by Russia in the Black Sea. With maritime exports paralyzed, overland shipments to EU neighbors — especially to Poland, Romania, and Hungary — surged, provoking protests from local farmers who claimed Ukrainian goods were overwhelming markets and lowering prices. Although Brussels initially intervened to curb Ukrainian imports, Slovakia, Poland and Hungary applied unilateral bans on some Ukrainian goods in September 2023, citing national security issues but defying EU trade rules. The influx following the trade measures set to expire on June 6 has been touted as a sign of Ukraine's incompatibility with the EU. The issue was on the campaign agenda in the recent Polish presidential election, with both candidates voicing concerns over Ukrainian agricultural imports. According to Svitlana Taran, policy analyst at the Brussels-based European Policy Centre, the 2022 trade measures were not the main driver of the surge. "Politicians have accused ATMs as the primary reason for this situation, which is not the case," she told the Kyiv Independent. "This was an exceptional situation caused by the sudden collapse of Ukraine's main export routes. The influx was not caused by the removal of tariffs, but by Russia's invasion and blockade, and insufficient transport capacities. The suspension of tariffs was just one of the factors, and after Ukraine unblocked Black Sea channels, this situation was eased." European imports of Ukrainian products whose tariffs were lifted did initially spike to an unprecedented level of over 900 million euros, but then quickly declined. Imports of these goods are now generally higher than they were before the full-scale invasion, but not at unprecedented levels. "This example cannot be used to frighten EU farmers that it would be a normal situation if they open their markets to Ukrainian agriculture," Taran added. There is also little evidence that Ukrainian products affected prices in bordering countries. "We looked at (prices) for sugar and found no evidence," Stephan Cramon-Taubadel, chair of Agricultural Policy at the University of Gottingen, told the Kyiv Independent. "I currently have some preliminary results that show slightly depressed local prices for wheat in eastern Polish regions bordering Ukraine in parts of 2023 and 2024, but it's much less than it's made out to be, and something that the EU could easily compensate." Nevertheless, Brussels will not renew the ATMs following longstanding pressure from eastern European countries looking to appease the farmers' lobby. Read also: In wartime Ukraine, a university grows — and reclaims a space once reserved for the corrupt The reversion to pre-war rules is a step back for Ukraine's exporters. The EU has become a closer trading partner for Ukraine since the full-scale invasion began. Over 60% of Ukraine's exports now go to the EU, relative to about 40% before the war. Reverting to the pre-war rules may pose challenges to Ukrainian exporters, who have adapted to trade with fewer tariffs. "It's a challenge, because it's not something businesses were fully prepared for," Veronika Movchan, academic director at the Institute for Economic Research and Policy Consulting, told the Kyiv Independent. "Many hoped that the measures would continue, at least to some extent. I expect that some businesses made decisions based on the existing regime." The Ukrainian Agribusiness Club estimates that, in 2025, Ukraine will lose up to 1.1 billion euros ($1.2 billion) in foreign exchange earnings under the temporary measures, and 3.3 billion euros ($3.7 billion) next year if no agreement is reached. But there may even be barriers to reverting back to the 2016 trading rules, given the fraught politics surrounding the bans currently imposed by Poland, Hungary and Slovakia. "It's not even apparent that, when the free trade measures expire on Friday, these countries will lift the bans," said Movchan. "Some member states even imposed bans on goods that didn't have any barriers before the war, such as sunflower seeds and rapeseed." The episode highlights the potential for domestic politics within the EU and bilateral disputes to impede closer trade relations with Ukraine. It also demonstrates the opportunities for Russia to attempt to derail this process. "One thing we shouldn't underestimate is presumably largely Russian propaganda," Cramon-Taubadel said. "If we look at the channels from which some farmers are getting their information, there is much unsubstantiated fear-mongering claiming that imports from Ukraine are depressing prices." Read also: Controversial Russian literature prize sparks debate on separating culture from war crimes We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
Euronews
04-06-2025
- Business
- Euronews
EU-Ukraine trade reset: what comes after tariff-free access expires?
Since 2022, trade between the EU and Ukraine has been governed by a temporary framework known as Autonomous Trade Measures (ATMs). Introduced after Russia's full-scale invasion, the ATMs eliminated all tariffs and quotas on Ukrainian agricultural exports to the EU. This offered a critical lifeline access to European markets for Ukrainian producers, especially for agricultural commodities such as grains, maize, eggs, and poultry, sustaining the country's wartime economy. However, the ATM scheme is due to expire tomorrow (5 June), and it cannot be renewed, having already been extended once. Despite efforts since late 2024, the European Commission has failed to secure a permanent or improved replacement, leaving both Ukrainian exporters and EU policymakers scrambling. This delay has frustrated several EU member states, many of whom had expected the Commission to secure a sustainable agreement with Ukraine ahead of the expiration deadline. The political timing didn't help: The Commission faced considerable pressure to avoid inflaming domestic tensions, particularly in Poland, where farmers have protested against the influx of Ukrainian imports. With Poland's presidential elections now behind, Brussels hopes negotiations for a longer-term trade framework can finally move forward. What happens when the tariff-free scheme expires? The most immediate consequence is the reintroduction of tariffs on Ukrainian agricultural goods. In practical terms, this resets trade conditions between Ukraine and the EU to the situation before Russia's 2022 invasion, with tariff lines and quotas from the pre-ATM era reinstated. According to Ukrainian officials, this could cost the country over €3 billion annually in lost export revenue. Because the year is nearly half over, quota limits will be applied on a seven-twelfths basis for the remainder of 2025, proportionally reflecting the reduced time window. The impact will be significant. In 2024, nearly 60% of Ukraine's total exports went to the EU, up from just over 39% in 2021, before the ATMs came into force. The free access to EU markets has been a pillar of Ukraine's economic resilience during wartime, helping to stabilise currency flows and sustain public funding. The loss of preferential market access is not merely an economic inconvenience: It could have direct consequences for Ukraine's ability to fund its war effort. Vitalii Koval, Ukraine's minister of agrarian policy and food, highlighted during a recent visit to Brussels that agriculture represents a much larger share of Ukraine's economy than it does in the EU. One in five Ukrainians works in the agricultural sector, and its performance directly influences national revenues. Ukrainian MP Yevheniia Kravchuk warned that failure to secure even a partial solution could result in a 1% drop in GDP, further straining the country's wartime finances. 'Ukrainian companies have shifted their markets toward the EU. If exports decrease, tax revenues drop, those same taxes that fund our military,' she told Euronews. The reintroduction of tariffs is also expected to suppress producer prices, increase market uncertainty and discourage private investment, hampering both recovery and reconstruction efforts in the longer term. To avoid a sudden rupture in trade flows, the European Commission has prepared transitional measures to apply after the expiration of the ATMs. These were quietly approved two weeks ago by EU ambassadors as a precautionary step, though full details have yet to be published. A Commission spokesperson described the transitional measures as a 'bridge' to allow time for a more comprehensive review of the EU-Ukraine Deep and Comprehensive Free Trade Area (DCFTA), which is the long-term trade agreement underpinning relations before the ATMs. Crucially, the Commission has stated that future trade will be based on the DCFTA, not an extension of the emergency ATMs. This marks a clear shift, disappointing Ukrainian hopes of maintaining the same level of market access they enjoyed under the tariff-free regime. Negotiations toward a revised DCFTA began formally with a meeting in Brussels on Monday afternoon. While details remain scarce, a Commission spokesperson said more clarity is expected "in the coming days". Earlier that day, EU ambassadors met to reaffirm the importance of establishing long-term, predictable trade relations with Ukraine, while also ensuring protections for European farmers, a politically sensitive group in several member states. 'It is an extremely important decision to be taken,' said MP Kravchuk. 'When I hear that, since the full-scale invasion, the EU has spent more on Russian gas and oil than on aid to Ukraine—and now we are talking about cutting economic access meaning that Ukraine's economy in the times of war will be shrinking—then it's a questionable position, rather than a partnership one.' The EU's 27 foreign ministers are scheduled to meet their Israeli counterparts on 23 June for an EU-Southern Neighbourhood ministerial meeting which is aimed at deepening the bloc's cooperation with Israel as well as nine other southern partners including Algeria, Palestine, Egypt, Jordan, Lebanon, Libya, Morocco, Syria and Tunisia. 'The objective is for Israeli representatives to be present at the meeting,' a senior Israeli official told Euronews, adding that the participation of Gideon Saar, Israel's foreign affairs minister 'is still to be confirmed'. But the meeting comes at a time of unprecedented cooling of relations between the EU and Israel following the country's blockage of food from entering into Gaza and after Palestinian health officials and witnesses alleged recent shootings by Israeli soldiers of Palestinians headed for humanitarian aid sites. The Israeli army has said it fired 'near a few individual suspects' who left the designated route, approached its forces and ignored warning shots. The meeting also comes after the EU's foreign policy chief Kaja Kallas stated in late May that the bloc would examine if Israel has violated its human rights obligations under Article 2 of the EU-Israel Association Agreement, which defines the trading and diplomatic relations between both sides. No timeline has been fixed for the review, which will be conducted by the EU's external action service (EEAS). Israeli foreign ministry spokesperson Oren Marmorstein has "completely" rejected the direction taken in Kallas' statement, saying it reflected "a total misunderstanding of the complex reality Israel is facing". The Netherlands, which tabled the move and is considered a firm ally of Israel, said that Israel's 'humanitarian blockade' on Gaza, where a limited quantity of critical supplies entered for the first time in more than eleven weeks on Monday, is in "violation of international humanitarian law" and therefore of Article 2. An EU official said that the 23 June meeting involving Israel will not be a forum to discuss the ongoing war in Gaza but a routine gathering conducted under the EU's Southern Neighbourhood partnership, which is meant to strengthen existing cooperation with 10 southern neighbours on a wide range of issues, including governance, climate change, economic development, energy and migration. In addition, the EU is Israel's biggest trade partner, with the trading relationship valued at more than €45 billion each year. The EU's Southern Neighbourhood partnership derives from the 1995 Barcelona Declaration which committed to turn the Mediterranean into 'an area of dialogue, exchange and cooperation, guaranteeing peace, stability and prosperity', according to an official Commission document. In 2020, trade between the EU and the region represented €149.4 billion and the bloc's imports were worth €58.0 billion. In 2021, the EU 27 agreed to strengthen their partnership with the Southern Neighbourhood following the COVID-19 pandemic and meet their counterparts every year. Their cooperation is based on 'good governance, human rights and fundamental freedoms promotion and protection, democratic institutions and the rule of law", according to 2021 European Council summit conclusions. One of the last EU-Southern Neighbourhood ministerial meetings took place in 2022 in Barcelona, where participants discussed regional cooperation as well as the war in Ukraine.
