EU to Impose Temporary Trade Regime as Tariff-Free Trade with Ukraine Ends
The European Commission is to adopt a list of transitional measures regulating Ukrainian exports to the EU, a temporary substitute once the unlimited visa-free trade regime is over on June 5, 2025, European Pravda wrote, citing a briefing by Balazs Ujvari the EU Commission’s spokesman.
The transitional measures will come into effect on June 6. However, Ujvari gave no details about what the temporary policy would involve.
“We are not now looking for an annual extension of these measures, we are looking for a long-term solution. That is why we are focusing on the Deep and Comprehensive Free Trade Agreement (DCFTA) that has existed between the European Union and Ukraine since 2016,” he said, adding:
“Negotiations are currently underway to revise, modernize and update it. This is our long-term focus.”
The European Union will not extend the suspension of import duties on Ukrainian exports set to expire in June, a move that could cost Kyiv billions in revenue, two sources familiar with the matter previously told Kyiv Post.
The EU’s Autonomous Trade Measures (ATM), adopted in the summer following Russia’s 2022 full-scale invasion of Ukraine, removed tariff rate quotas on 36 categories of Ukrainian import goods to provide support to the country during the war. The current EU pause on duties on imports from Ukraine is active until June 5, 2025.
The European Delegation to Ukraine previously confirmed to Kyiv Post that Ukraine will transition from the ATM framework to the trade regime governed by its Article 29.
“This process aims to ensure economic stability and predictability for farmers and businesses in both Ukraine and the EU,” Nicolò Gasparini, spokesperson for the EU Delegation to Ukraine, told Kyiv Post by email.
The transitional measures that will be enabled after June 6, allow Ukraine to “avoid the worst scenario”, Ukraine’s Deputy Prime Minister for European and Euro-Atlantic Integration of Ukraine within the Ministry of Justice Olha Stefanishyna told European Pradva.
“There is no talk of any cessation of free trade: the EU market remains open to Ukrainian goods. We agreed to work quickly and constructively to achieve a long-term solution,” Stefanishyna said.
In her opinion, Ukraine and the EU will reach a solution in July since the EU doesn’t want to jeopardize Ukraine’s export volumes. “There is a clear political will to find a balanced solution by the end of July,” she said.
Ukraine relies on exports within the ATM framework to secure crucial foreign currency to fund its military effort. The country’s war-torn economy could lose around €3 billion ($3.4 billion) if the EU reinstates tariffs, Ukraine’s agribusiness club estimated.
Source: Olena Hrazhdan