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Ukraine: EU plans more tariff-free trade, but with limits

March 20, 2024

The EU has reached a provisional deal to extend tariff-free Ukrainian agricultural imports until June 2025. But some produce will face tougher restrictions, following farmers' protests across in several EU countries.

Ukrainian cargo trucks stand in line as an ongoing blockade by Polish farmers continues at the Polish-Ukrainian border in Dorohusk
Ukrainian agricultural exports into the EU have faced protests in several European countries, not least neighboring PolandImage: Omar Marques/Anadolu/picture alliance

Neogtiators from the European Council and the European Parliament have reached a provisional agreement to continue the freeze on import duties and quotas on Ukrainian exports to EU markets until June 2025, the Belgian EU presidency said on Wednesday.

However, the accord will include tougher restrictions on some agricultural produce, following protests and pressure from farmers and other groups in recent months. 

Poland: Farmers angry at Ukraine

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What did the EU say? 

"This renewal underscores our unwavering support to Ukraine while including safeguard mechanisms to protect EU market," the European Council said in a statement.

"At the same time, the EU has decided to reinforce the protection of sensitive agricultural products by beefing up safeguards already included in the current regulation on temporary trade-liberalization measures," the statement also said, before detailing some of the tougher restrictions.

'Emergency brake'

In January, the European Commission had proposed to suspend duties and quotas on Ukrainian farm produce, with an "emergency brake" for poultry, eggs and sugar, meaning that tariffs would be levied if imports surpassed the average levels of 2022 and 2023.

On Wednesday, European lawmakers extended this list to include oats, maize, groats and honey. It also said that the safeguards would kick in more quickly, after 14 rather than 21 days, where limits were exceeded.

The Parliament also said that it has attained commitments from the Commission to take action if Ukrainian wheat imports spiked.

"The autonomous trade measures (ATMs) will allow Ukraine to continue generating its own income from trade flows with the EU, which is important to support its economy under very challenging circumstances," the European Council said in a press release. 

"Coupled with the EU’s extensive military, financial and humanitarian support, this will help Ukraine with its long-term recovery as well as its gradual integration into the EU internal market." it added. 

Members of the European Parliament and the Council still have to approve the provisional agreement but such agreements tend to at least closely mirror whatever final deal is reached.

dvv/msh (dpa, Reuters)

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