EU considering changes to preferential trade terms with Ukraine
www.pravda.com.ua
Tue, 28 Jan 2025 11:36:13 +0200
The European Commission is reportedly considering not extending Ukraines current preferential trade regime, which expires in June, and has already started technical discussions on new trade terms.
Source European Pravda, citing the Polish news portal RMF24 Details The European Commission is reportedly not planning to extend the special preferential trade regime with Ukraine after 5 June.
This regime, introduced in 2022 to support Ukraines economy, is set to expire. However, there are no plans to return to the prewar trade arrangements, as that would deal a significant blow to Ukraine, whose exports to the EU have increased in recent years.
One alternative under consideration is a new agreement within the framework of the Deep and Comprehensive Free Trade Area DCFTA.
This could include setting quotas for certain agricultural products from Ukraine and implementing additional safeguards.
This approach could support Ukraines gradual integration into the EU single market and prepare it for future membership.
Quote Most agriculture ministers prefer a more stable DCFTA agreement over extending the current regime.
They want to move forward with the DCFTA, where new export and import volumes will be defined, said Christophe Hansen, European Commissioner for Agriculture and Food, adding that this would be the best solution.
RMF FM reports that the European Commission has already started technicallevel negotiations with Kyiv on a new trade agreement, with formal talks set to begin soon.
An unnamed source in the European Commission anticipates that future trade support measures for Ukraine will be more limited, and agricultural imports from Ukraine to the EU may decrease.
This shift is partly due to changes in the European Commissions leadership, including the appointment of Slovak Maro efovi as the new EU trade commissioner, replacing Latvias Valdis Dombrovskis.
Slovakias stance on trade with Ukraine is more aligned with Polands position.
Sources in the European Commission say the issue is highly sensitive, as the EU seeks to balance maintaining favourable conditions for Ukraines economy amid the war with concerns about European farmers reactions.
Background Recently, Poland announced its intention to link negotiations on extending the liberalised trade of agricultural products with Ukraine to discussions on the EUs trade agreement with South American countries Mercosur.
On 13 May 2024, the EU Council, after lengthy and intense negotiations, approved an extension of preferential trade with Ukraine for another year, until 5 June 2025.
Unlike the previous two years, the extension includes restrictions, following protests from farmers.
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