Latest news with #DCFTA
Saudi Gazette
2 days ago
- 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
2 days ago
- 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
2 days ago
- 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.
Straits Times
06-06-2025
- Business
- Straits Times
EU reimposes pre-war agri duties on Ukraine, seeks compromise in new deal
BRUSSELS - The European Union reimposed duties and quotas on Ukrainian agricultural products from Friday, and hopes to clinch a deal on new quotas that will be smaller than imports during the last three years after Russia's invasion, the EU's agriculture commissioner told Reuters. The EU temporarily waived duties and quotas on agricultural products in June 2022 after Russia's full-scale invasion to help Ukraine compensate for the higher costs of its exports, after Russia threatened its traditional Black Sea shipping lanes. Those tariff suspensions expired on Thursday. The EU and Ukraine reverted to the pre-war regime of trade quotas on Friday, while the two sides negotiate a new longer-term deal. Brussels is seeking to strike a balance between supporting Ukraine in its war with Russia, and heeding European farmers' concerns about cheaper Ukrainian imports. "What will be negotiated will be something in between the quotas under the existing DCFTA and the autonomous trade measures, the volumes that have been exported there," EU agriculture commissioner Christophe Hansen said in an interview with Reuters on Thursday. The DCFTA refers to Ukraine and the EU's pre-war trade deal. The EU's "autonomous trade measures" temporarily suspended quotas on Ukrainian imports from 2022. Ukraine's farm minister Vitaliy Koval told Reuters this week that Kyiv was pushing for an agreement on higher quotas than it had before the war. EU farmers have complained that large shipments of cheaper Ukrainian sugar imports under the wartime tariff exemptions have undercut local supplies. The EU triggered "emergency brakes" to re-impose quotas on products including sugar and eggs in the past year, in response to surging imports. The EU's Ukrainian sugar imports soared to 400,000 tons in the 2022/23 season and over 500,000 tons in 2023/24, far exceeding the pre-war quota of 20,000 tons. Hansen said the new quotas on sugar would be "significantly higher" than those under the pre-war arrangements. "I think we can absorb a certain amount of those products," he said, while noting sensitivities among European farmers concerned about higher imports of sugar, poultry and eggs. Negotiations on the new EU-Ukraine deal started on June 2. Hansen said it was feasible a deal could be reached by summer. "It depends now on both sides, I think technically that could be feasible," he said. Agricultural goods accounted for about 60% of Ukraine's total exports last year, with the EU buying around 60% of those goods, worth about $15 billion. A senior Ukrainian lawmaker said last month the loss of tariff-free access to the EU market could cost the country 3.5 billion euros ($3.99 billion) in annual revenue. "Our solidarity with Ukraine is as firm as ever, and therefore we are very committed to deliver this agreement as quickly as possible," Hansen said. The pre-war quota regime, which applies as of Friday, also includes lighter rules on import licenses for some goods like poultry and eggs, where instead of requiring licenses, quotas will be allocated on a first-come, first-served basis. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Yahoo
06-06-2025
- Business
- Yahoo
New EU-Ukraine agri trade quotas to be 'in between' current deal and wartime exemptions
By Kate Abnett BRUSSELS (Reuters) -The European Union and Ukraine are negotiating a new deal that will set import quotas on agricultural goods from Ukraine somewhere "in between" current levels and the temporary exemptions granted after Russia's 2022 invasion, the EU's agriculture commissioner told Reuters. The EU temporarily waived duties and quotas on agricultural products in June 2022 after Russia's full-scale invasion to help Ukraine compensate for the higher costs of its exports, after Russia threatened its traditional Black Sea shipping lanes. Those tariff suspensions expired on Thursday. The EU and Ukraine reverted to the pre-war regime of trade quotas on Friday, while the two sides negotiate a new longer-term deal - in which Brussels is seeking to strike a balance between supporting Ukraine in its war with Russia, and heeding European farmers' concerns about cheaper Ukrainian imports. "What will be negotiated will be something in between the quotas under the existing DCFTA and the autonomous trade measures, the volumes that have been exported there," EU agriculture commissioner Christophe Hansen said in an interview with Reuters on Thursday. The DCFTA refers to Ukraine and the EU's pre-war trade deal. The EU's "autonomous trade measures" temporarily suspended quotas on Ukrainian imports from 2022. Ukraine's farm minister Vitaliy Koval told Reuters this week that Kyiv was pushing for an agreement on higher quotas than it had before the war. EU farmers have complained that large shipments of cheaper Ukrainian sugar imports under the wartime tariff exemptions have undercut local supplies. The EU triggered "emergency brakes" to re-impose quotas on products including sugar and eggs in the past year, in response to surging imports. The EU's Ukrainian sugar imports soared to 400,000 tons in the 2022/23 season and over 500,000 tons in 2023/24, far exceeding the pre-war quota of 20,000 tons. Hansen said the new quotas on sugar would be "significantly higher" than those under the pre-war arrangements. "I think we can absorb a certain amount of those products," he said, while noting sensitivities around sugar, poultry and eggs. Negotiations on the new EU-Ukraine deal started on June 2. Hansen said it was feasible a deal could be reached by summer. "It depends now on both sides, I think technically that could be feasible," he said. Agricultural goods accounted for about 60% of Ukraine's total exports last year, with the EU buying around 60% of those goods, worth about $15 billion. A senior Ukrainian lawmaker said last month the loss of tariff-free access to the EU market could cost the country 3.5 billion euros ($3.99 billion) in annual revenue. "Our solidarity with Ukraine is as firm as ever, and therefore we are very committed to deliver this agreement as quickly as possible," Hansen said. The pre-war quota regime, which applies as of Friday, also includes lighter rules on import licenses for some goods like poultry and eggs, where instead of requiring licenses, quotas will be allocated on a first-come, first-served basis. ($1 = 0.8763 euros)
