The EU restores commercial restrictions with Ukraine. Negotiations on long -term frames are underway

On June 5, the current free trade system between Ukraine and the European Union will expire. Tariff contingents and duties on some agricultural products will come back. Until the conclusion of a new, long -term trade agreement, a temporary transition mechanism is to apply: 7/12 of the annual tariff quotas. – It will be difficult negotiations, because it is also a stage of preparing the entire process of future integration of Ukraine with the European Union – says the Minister of Agriculture, Dr. Czesław Siekierski.

Before 2022, EU trade with Ukraine was based on the DCFTA association agreement (Deep and Comprehensive Free Trade Agreement), which has been in force since 2016. After Russia's invasion of Ukraine, the European Commission adopted autonomous trade funds in June 2022 (ATM), which enabled the duty -free entry of Ukrainian goods to the EU. This is key support for a country defending himself against a Russian aggressor. In 2021, Ukraine obtained almost 41 percent. its income from the export of goods from the sale of agri-food products, in 2022 and 2023, it was already 53 and 61 percent, respectively. After the protests of farmers from neighboring countries last year, the EC prolonged the suspension of customs by June 5 this year, but with additional security to protect the EU market.

– This opening in a tired form was introduced in June last year, now it will end in June. The size of quotas, amounts that determined the amount of import of goods to the European market have been established. Now this period ends, we are coming back to the association agreement for some time – emphasizes in an interview with the Newseria agency dr Czesław Siekierski, the Minister of Agriculture and Rural Development. – The association agreement gave a small opening of the European market to Ukrainian goods, but we know that Ukraine will be very trying for further negotiations to increase its exports to the European market.

The transition mechanism is to apply in the 7/12 formula of the annual tariff quotas. This means that Ukraine will be able to export some agricultural products to the EU under 58 percent. annual tariff contingent (in proportion to the other seven months of the year). After exceeding the limits, duties will apply. The transition mechanism will apply until new long -term legal framework has been developed.

– We are interested in the smallest Ukrainian exports to the Polish and European market, but the Ukrainian side says: Well, but Poland has a surplus in exports, therefore we also want to participate and export our goods in some way. These are difficult negotiations that are ahead of us, because this is also the stage of preparing the entire process of future integration of Ukraine with the European Union – emphasizes the Minister of Agriculture.

The EU is Ukraine's largest trading partner

The European Commission data shows that the EU is Ukraine's largest trading partner, responsible for more than half of its trade in goods. Last year, the value of exports of goods from Ukraine to the EU amounted to EUR 24.5 billion. The main goods in terms of value are cereals (18.1 percent of total export), fats and animal and vegetable oils (12.5 percent), oily seeds (10 percent), or iron and steel (7.8 percent). For comparison, the export of EU goods to Ukraine amounted to EUR 42.7 billion in 2024 and they were mainly fuels and mineral oils or machines. In 2023, Ukraine remained the third largest source of the EU import of agri-food products in terms of value.

This country with 30 million ha of very fertile soil has the largest area of ​​agricultural land in the European zone and was called the “granary of Europe” for a reason before the war. Thus, it is a lot of competition for Polish exports of agricultural products in EU markets. KOWR data shows that in 2024 the revenues obtained from the export of agri-food goods from Poland increased compared to 2023 by 2.7 percent, to a record level of EUR 53.5 billion. The share of the EU market amounted to 74 percent.

– Ukrainian agriculture has great potential, good soils, large areas, so production capabilities are unique. The technology has been moved from Western countries, from the European Union, and therefore efficient machines, effective, good plant protection products. They often use plant protection products not allowed in the European Union, because they have a negative impact on the environment, but Ukraine is not yet in the Union, it can use these measures, which gives more protection against pests and diseases – says Dr. Czesław Siekierski.

Copa-Cogeca together with other European agricultural and processing organizations at the beginning of May emphasized that although constant support for Ukraine is necessary, it is equally important to ensure that European farmers and producers do not have to carry a disproportionately large part of the burden of this support. Liberalization of trade with Ukraine meant that many of them – especially in sectors such as cereals, sugar, poultry, eggs, ethanol and honey – were subjected to strong pressure. Manufacturers face a decrease in prices due to hypertension on the market, decreasing market share, logistics restrictions and rising production costs caused by war. This consequently threatens their economic profitability, and at the same time allows Russia to use the gap left by Ukraine's absence in key markets in North Africa and Southeast Asia.

– The level of support, which was given to Ukraine in 2022 after Russia's assault, is subordinated to the support of the Ukrainian economy and the Ukrainian budget. Although we often have doubts whether this money really goes to the poorer part of agriculture, to the budget, as far as they are captured by large oligarchs who manage hundreds of thousands of hectares – says the minister.

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