Brussels, 8 April 2024
EU member states’ representatives (Coreper) confirmed today the provisional deal reached earlier on the same day between the Council presidency and the European Parliament representatives to renew the suspension of import duties and quotas on Ukrainian exports to the EU until 5 June 2025.
This renewal reaffirms the EU’s unwavering political and economic support for Ukraine, after two years of Russia’s unprovoked and unjustified military aggression.
At the same time, the EU has decided to reinforce the protection of sensitive agricultural products by beefing up safeguards already included in the currently applicable autonomous trade measures, which includes taking into account any adverse impact on the market of one or several member states, rather than just on the EU market as a whole (as is the case now). A new automatic safeguard will also be added for certain sensitive products, such as poultry, eggs, sugar, oats, maize, groats and honey.
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. 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.
Main elements of the regulation
The regulation will apply from 6 June 2024 until 5 June 2025 and concerns the continued suspension of all outstanding customs duties and quotas under Title IV of the EU-Ukraine Association Agreement (DCFTA).
The regulation will also include two safeguard mechanisms to protect the EU market:
- a strengthened version of the existing mechanism, which will apply on the basis of regular monitoring, allowing the Commission to impose any measure provided that specific conditions are met;
- a new, automatic safeguard mechanism which will oblige the Commission to reintroduce tariff-rate quotas if imports of poultry, eggs, sugar, oats, maize, groats and honey exceed the arithmetic mean of quantities imported in the second half of 2021, 2022 and 2023.
Key elements of the provisional agreement
- extending the scope of the automatic safeguard mechanism to include four additional products (oats, maize, groats and honey)
- shortening of the time period for activation of the automatic safeguard from 21 to 14 days
- extending the reference period to determine if imports exceed a certain threshold (adding the second half of 2021 to the period 2022-2023)
- the Commission’s commitment to enhanced monitoring of imports of grain, in particular wheat, and to use of the tools at its disposal in the event of market disruptions, as well as a commitment to take the necessary steps under the Association Agreement with Ukraine, as soon as the new ATMs are adopted, to pursue, through consultations with Ukraine, the process of reciprocal tariff liberalisation
Next steps
The European Parliament’s Committee on International Trade is invited to confirm the outcome of the interinstitutional negotiations tomorrow.
The Parliament’s position at first reading is then expected to be adopted at the second plenary session in April.
The regulation will then be adopted by the Council, signed by the representatives of the Council and the European Parliament and published in the Official Journal, before entering into force on 6 June 2024.
Background
On 31 January 2024, the European Commission proposed extending the suspension of import duties and quotas on all imports from Ukraine to the EU for another year. The proposal was presented in the context of Russia’s continuing war of aggression against Ukraine, the resulting need to continue to support Ukraine economically, and considering that Ukraine was granted EU candidate status in June 2022 and accession negotiations were opened in December 2023.
- Proposal for a regulation on temporary trade-liberalisation measures
- Provisional agreement reached on first trilogue (press release, 20 March 2024)
- Ukraine: Council adopts renewal of temporary trade liberalisation and other trade concessions (press release, 25 May 2023)
- EU response to Russia’s invasion of Ukraine (background information)
- EU-Ukraine Deep and Comprehensive Free Trade Area, European Commission
Deal on trade support for Ukraine with more protection for EU farmers
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Duties and quotas temporarily suspended for Ukraine until June 2025
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Reinforced safeguard measures to protect EU farmers
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Emergency break for sensitive products with longer reference period
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Talks with Ukraine on permanent trade liberalisation to start soon, with Parliament closely involved
On Monday, Parliament and Council reached a new provisional agreement on extending temporary trade measures for Ukraine.
MEPs and the Council presidency agreed on suspending import duties and quotas on Ukrainian agricultural exports to the EU for another year, until 5 June 2025, to support Ukraine amidst Russia’s continuing brutal war of aggression. These unilateral trade liberalisation measures will help stabilise the Ukrainian economy and facilitate the country’s gradual integration into the EU’s internal market.
Should there be significant disruption to the EU market or the markets of one or more EU countries due to Ukrainian imports, for instance wheat, the regulation ensures that the Commission can take swift action and impose any measures it deems necessary.
As part of reinforced safeguard measures to protect EU farmers, an emergency brake can be triggered for particularly sensitive agricultural products, namely poultry, eggs, sugar, oats, groats, maize, and honey. Negotiators agreed to extend the reference period used as a base for triggering this automatic safeguard, meaning that if imports of these products surpass the average of import volumes recorded in the second half of 2021, and all of 2022 and 2023, tariffs would be re-imposed. In addition, the Commission commits to step up its monitoring of imports of grain, in particular wheat.
The co-legislators also endorsed a commitment by the Commission to discuss permanent tariff liberalisation with Ukraine under the review process of the Association Agreement as soon as the legislative procedure on the temporary liberalisation is completed, and to keep the Parliament closely involved in the process.
Quote
Rapporteur Sandra Kalniete (EPP, LV) said:
“The ripple effects of Russia’s relentless targeting of Ukraine and its economy are being felt by EU farmers. Under this new agreement with the Council, we have fortified safeguards to protect EU farmers in case of market turbulence sparked by Ukrainian imports. By extending the trade support measures for another year, this agreement is also a testament to the EU’s continued solidarity and unwavering support for Ukraine in the face of Russia’s brutal war of aggression until Ukraine’s victory.”
Next steps
Parliament and Council will now both have to give their final green light to the provisional agreement. Parliament’s plenary is likely to vote on the regulation during the second part-session in April. The current trade measures expire on 5 June 2024, and new regulations should enter into force immediately following this date.
Background
The EU-Ukraine Association Agreement, including the Deep and Comprehensive Free Trade Area, has ensured that Ukrainian firms have preferential access to the EU market since 2016. After Russia launched its war of aggression, the EU put in place autonomous trade measures (ATMs) in June 2022, which allow duty-free access for all Ukrainian products to the EU. These measures were extended by one year in 2023, and in January, the EU Commission proposed to renew the suspension for another year with additional safeguards to protect the EU market. Last month, Council and Parliament reached an agreement on the regulation, but later member states decided to amend the text, creating the need for new negotiations, which ended with the new provisional deal. For Moldova, Parliament recently decided to extend similar measures for another year.
Further information