EU may change terms of preferential trade with Ukraine

The European Commission reportedly does not plan to extend the special preferential trade regime with Ukraine, which was introduced in June 2022 to support the country's economy. At the same time, this does not mean a return to the trade regime that existed before Russia`s full-scale invasion.

Among the options being considered is an agreement within the framework of the Deep and Comprehensive Free Trade Area (DCFTA), which could include the establishment of quotas for certain types of agricultural products and additional safeguards. This, in turn, could facilitate Ukraine's integration into the EU single market.

"Most agriculture ministers are in favor of a more stable DCFTA agreement rather than extending the current regime… They prefer moving towards DCFTA, where new export and import volumes will be defined," said European Commissioner for Agriculture Janusz Wojciechowski.

RMF FM also adds that the European Commission has already begun negotiations with Ukraine on this issue, but so far only at a technical level. The main negotiations are expected to start soon.

An unnamed source added that in the future, trade support measures for Ukraine will be more modest, and the volume of imports to the EU will decrease due to changes in the leadership of the European Commission.

Earlier, in May 2024, the Council of the European Union (EU) supported the extension of preferential trade with Ukraine until June 5, 2025. Unlike similar decisions in the previous two years, due to farmers' protests, duty-free trade was extended with safeguards for certain groups of goods.