EU approves extension of trade benefits for Ukraine with safeguard mechanisms

Photo: iStock / Getty Images

The Council of the European Union finally approved the extension of trade benefits for Ukraine for another year, after a durable and intense negotiation process on 13 May.

Source: European Pravda, with reference to press service of the European Council

Details: Unlike similar decisions of the two previous years, this year, the EU decided to prolong the duty-free trade with Ukraine but with restrictions due to farmers’ protests.

Advertisement:

Quote: “This renewal reaffirms the EU’s unwavering political and economic support for Ukraine, after two years of Russia’s unprovoked and unjustified military aggression, and at the same time reinforces the protection of EU farmers as regards certain sensitive agricultural products.”

Autonomous trade measures for Ukraine will apply until 5 June 2025.

The decision provides for two safeguard mechanisms for protection of the EU market:

• strengthened version of the existing safeguard 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 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, in 2022 and in 2023.

“The EU has finally approved the “visa-free trade” with Ukraine. This is the trade free of duties and quotas for one more year. This is an important support for our manufacturers, export and economy. Our accelerated EU integration is ongoing,” said Denys Shmyhal, Prime Minister of Ukraine.

Moreover, the EU extended the duty-free trade mode with Moldova with the same decision.

Background:

In a vote on Tuesday 23 April, the European Parliament approved a one-year extension of the deal on duty-free food trade with Ukraine, along with extra safeguards for European farmers.

The agreement will take effect on 6 June 2024.

Support UP or become our patron!