On 5 June, the current free trade government between Ukraine and the European Union will expire. Tariff quotas and duties for part of agricultural products will be restored. Pending the conclusion of a fresh long-term trade agreement, a temporary transitional mechanics is to apply: 7/12 yearly tariff quotas. “This will be hard negotiations, due to the fact that this is besides the phase of preparing the full process of Ukraine’s future integration into the European Union,” says the Minister of Agriculture Dr Czesław Siekierski.
Prior to 2022, EU trade with Ukraine was based on the DCFTA Association Agreement (Deep and Comprehensive Free Trade Agreement) in force since 2016. Following Russia's invasion of Ukraine, the European Commission adopted autonomous trade measures (ATM) in June 2022 that allowed duty-free entry of Ukrainian goods into the EU. It's crucial for a country defending itself against a Russian aggressor. In 2021 Ukraine gained almost 41 percent of its export income from the sale of agri-food products, and in 2022 and 2023 it was 53 and 61% respectively. After protests by farmers from neighbouring countries last year, the EC extended the suspension of duties until 5 June, but with additional safeguards to defend the EU market.
– This beginning in sharp form was introduced last June, now in June it will end. Quota volumes, quotas that determined the volume of imports into the European marketplace were fixed. Now this period is over, we are going back to the Association Agreement for a while – emphasises in an interview with Newseria, Dr Czesław Siekierski, Minister of Agriculture and agrarian Development. – The Association Agreement gave a tiny beginning of the European marketplace to Ukrainian goods, but we know that Ukraine will strive very hard for further negotiations to increase its exports to the European market.
The transitional mechanics is to apply in the 7/12 yearly tariff quotas. This means that Ukraine will be able to export any agricultural products to the EU under the 58% yearly tariff quota (proportionally to the remaining 7 months of the year). After exceeding the limits, duties will apply. The transitional mechanics will be in force until a fresh long-term legal framework is developed.
– We are curious in the smallest Ukrainian exports to the Polish, European market, but the Ukrainian side says: yes, but Poland has an export surplus, so we besides want to participate and export our goods in any way. These are hard negotiations ahead of us, due to the fact that this is besides a phase in the preparation of the full process of the future integration of Ukraine into the European Union. “The Minister of Agriculture emphasises.
Data from the European Commission show that the EU is Ukraine's largest trading partner, liable for more than half of its trade in goods. Last year, the value of exports from Ukraine to the EU amounted to EUR 24.5 billion. The main commodities in terms of value are grain (18.1% of full exports), animal and vegetable fats and oils (12.5%), oil seeds (10%), iron and steel (7.8%). By comparison, exports from the EU to Ukraine amounted to EUR 42.7 billion in 2024, mainly fuel and mineral oil or machinery. In 2023 Ukraine remained the 3rd largest origin of EU imports of agri-food products in terms of value.
The country with 30 million ha of highly fertile dirt has the largest agricultural area in the European region and was called the "sister of Europe" before the war. It is so a considerable competition for Polish exports of agricultural products on EU markets. According to KOWR data, in 2024 the revenues obtained from exports of agri-food products from Poland increased by 2.7 percent compared to 2023, to a evidence level of EUR 53.5 billion. The Union marketplace share was 74%.
– Ukrainian agriculture has immense potential, good soils, large areas, and so production opportunities are unique. The technology has been transferred from western countries, from the European Union, and so efficient machinery, effective, good plant protection products. They frequently usage plant protection products not already authorised in the European Union due to the fact that they have had a negative impact on the environment, but Ukraine is not yet in the Union, can apply these measures, which gives greater protection against pests and diseases – says Dr Czesław Siekierski.
The COPA-COGECA, together with another European agricultural and processing organisations in early May, stressed that although permanent support for Ukraine is necessary, it is equally crucial to guarantee that European farmers and producers do not gotta bear a disproportionate share of the burden of this support. The liberalisation of trade with Ukraine has caused many of them – especially in sectors specified as cereals, sugar, poultry, eggs, ethanol and honey – to be subjected to strong pressure. Producers face a fall in prices due to oversupply on the market, decreasing marketplace share, logistical constraints and rising production costs due to the war. This consequently threatens their economical viability while allowing Russia to exploit the gap left by Ukraine's absence in key markets in North Africa and Southeast Asia.
– The level of support granted to Ukraine in 2022 after Russia's attack is subject to the support of the Ukrainian economy and the Ukrainian budget. Though we frequently uncertainty whether this money actually goes to the poorer part of agriculture, to the budget, to what degree it is intercepted by the large oligarchs who run on hundreds of thousands of hectares – says the Minister.
