Extending the duty free trade regime for Ukraine

The EU Council has finally approved the extension of the duty free trade regime for Ukraine for another 12 months. The regime came into effect in June 2022 and will now be applied until June 2025. First Deputy Prime Minister of Ukraine and Minister of Economy of Ukraine Yuliia Svyrydenko announced that.

"This is vital political support for Ukraine, despite the sensitivities of agricultural trade. Most Ukrainian goods are exported to the EU without restrictions under the Association Agreement. In particular, all industrial goods are no longer subject to customs duties.

The autonomous EU trade preferences apply to agricultural products that were not fully liberalized in the Agreement. These are 36 categories of goods for which tariff quotas were provided, as well as goods subject to the entry price system. As of June 2022, these restrictions have been lifted and now full freedom of trade will be in effect until June 2025," explained Yuliia Svyrydenko.

In addition, the EU's autonomous trade preferences stipulate that no anti-dumping or safeguard measures will be applied to steel products.

At the same time, a sharp change in trade flows between Ukraine and the EU, including a sharp increase in trade in certain goods through neighboring EU member states, has led to a number of negative decisions, including the blocking of the border.

"For a long time, we have been working with the governments of neighboring countries and the EU institutions to eliminate these phenomena. In response, the EU Regulation on the extension of autonomous trade preferences contains provisions on special safeguard measures, including automatic measures for corn, poultry, sugar, oats, and cereals.

What is most important is that both Ukraine and the EU have agreed that this extension of autonomous trade preferences will be the last of its kind, and by next summer the parties will update the Association Agreement to establish the expected terms of trade for the period before accession to the EU," said Yuliia Svyrydenko.

According to her, such negotiations will cover not only duties on agricultural products that have not yet been liberalized, but also production standards, so as to remove prejudice against Ukrainian products.

The Government will also try to achieve the removal of all temporary measures taken by both neighboring EU member states and Ukraine that contradict the logic of open trade between us. Currently, the EU accounts for 65% of Ukraine's exports and 51% of imports and is an anchor trading partner for Ukraine.