EU and Ukraine Finalize Long-Term Trade Agreement Amid Ongoing Negotiations

The European Union and Ukraine have finalized a long-term trade agreement, marking the end of wartime trade liberalization measures that had allowed Ukrainian agri-food exports to enter the EU tariff-free since 2022. The new framework replaces the autonomous trade measures (ATMs), which were previously in place, with a structured framework that introduces modest increases in quotas for products considered sensitive by EU member states, including eggs, poultry, sugar, wheat, maize, and honey. A second group of products, including butter, skimmed milk powder, oats, barley, malt, and gluten, will see their quotas adjusted to reflect peak import levels reached since the start of the war. A third category, which includes items such as whole milk powder, fermented milk, mushrooms, and grape juice, will be fully liberalized. However, key details of the deal remain undisclosed, with finalization expected within days.

EU Trade Commissioner Maros Sefcovic and Agriculture Commissioner Christophe Hansen announced the agreement on June 30, calling it a ‘predictable’ and ‘reciprocal’ framework, though they did not reveal the final quotas or volumes included in the deal. Sefcovic noted that the finer points would be finalized ‘in the coming days.’ The agreement also benefits EU producers, granting them greater access to the Ukrainian market for goods like pork, poultry, and sugar. However, Hansen emphasized that expanded access for Ukrainian exports will depend on Ukraine’s compliance with EU agricultural standards by 2028, including rules on animal welfare and pesticide use.

The new deal includes safeguard provisions, allowing the EU or individual member states to restrict imports if domestic markets face serious disruptions. ‘Both EU and Ukrainian producers deserve a stable and predictable basis for the future development of bilateral trade,’ Hansen added. Critics, however, claim the EU delayed the process to avoid backlash from farmers ahead of Poland’s presidential election. The text of the agreement will now be submitted to the Council for ratification, marking a significant step in the bilateral relationship between the EU and Ukraine.