Given that the current provisional trade deal between the EU and Ukraine is scheduled to end on June 5th, several member nations have voiced their dissatisfaction over the European Commission’s inability to finalize negotiations for a new pact with the conflict-ridden country.
During a private meeting of EU agriculture ministers in Brussels on Monday, tensions arose as representatives from member countries voiced their displeasure towards the Commission due to its inability to secure an agreement with Ukraine, even though sufficient time was available for negotiations. This information comes from two individuals who were privy to the discussion shared with Axofa.
A number of ministers expressed their dissatisfaction over the failure to secure a more stable and permanent accord with Ukraine, as reported by someone familiar with the matter.
Other participants stressed that securing a lasting resolution for trade liberalization with Ukraine ought to have been a top priority for the Commission, as it possesses sole authority over trade deal negotiations, according to one individual.
At present, trade between the EU and Ukraine is regulated by Autonomous Trade Measures (ATMs). These provisions eliminate all duties and quotas on Ukrainian agricultural products. The implementation of these measures was prompted by Russia’s comprehensive invasion in 2022.
Nonetheless, the ATM programme is scheduled to end next week and cannot be extended further as it has reached its renewal limit. extended Once. As its expiration date approaches, the Commission has been trying unsuccessfully since late 2024 to set up an official replacement.
"It’s well-known that discussions between the Commission and Ukraine are ongoing. We can say these negotiations are still in their early stages," admitted Czesław Siekierski, Poland's agriculture minister and current chairman of the EU Agrifish Council, at a follow-up press briefing.
Temporary solutions required as negotiations hit an impasse
To fill the void created by the halted trade negotiations, the Commission has drafted interim measures that will come into effect until the review of the EU-Ukraine Deep and Comprehensive Free Trade Area (DCFTA) is concluded and an updated agreement is finalized.
These temporary steps were endorsed last week by EU ambassadors as a preventive measure.
Siekierski pointed out that the fresh regulations, mirroring the conditions of Ukraine’s pre-war pact with the European Union, are "considerably less specific" compared to the ATM program when it comes to restrictions on Ukrainian farm goods entering the market.
During the meeting, the Commission restated its commitment to shift from provisional measures towards setting up a more consistent trade structure.
"Both farmers and stakeholders require clarity for future planning," said EU Agriculture Commissioner Christophe Hansen to the ministers, as per briefing documents shared by representatives of the Commission.
Hansen further stated that the Commission is closely communicating with Ukrainian authorities to quickly achieve an equitable accord that takes into account the concerns of all parties involved.
Agriculture remains the most sensitive The configuration of ATMs has sparked criticism across multiple European Union nations, notably in France and Poland, where farmers have demonstrated against the rise in Ukrainian goods following the removal of trade restrictions.
Regarding this matter, the Commissioner assured ministers that the transitional arrangements do not implement new quotas or raise permitted import levels for goods from Ukraine.
Ukraine urges swift action
The meeting started with remarks from Vitalii Koval, Ukraine’s minister for agrarian policy and food, who encouraged the EU to quickly reach consensus on a fresh free trade agreement and discover a fair resolution grounded in quantitative data, as reported by an EU official.
Koval alerted EU ministers that Ukraine is battling to defend European principles, emphasizing the significant impact of three successive nights of Russian assaults, which have heavily burdened the nation’s infrastructure.
During his presentation, Koval emphasized the vital importance of the agricultural sector to Ukraine. An EU official pointed out that Ukraine's farming industry holds substantial weight within the nation's economy—seven times greater compared to any European Union member state—with approximately one-fifth of Ukraine’s population working in this field.
Koval pointed out a decrease of 20.5% in accessible farmland because of the occupation, and referred to data from the World Bank indicating that Ukraine has incurred €83.9 billion worth of damage and loss in agriculture as a result of the conflict.
Although the Commission now aims to decrease the market access levels formerly permitted under the ATMs, Ukraine intends to maintain the previous extent of access to the European Union market.
Koval highlighted that 66% of Ukraine’s imports originate from the EU and contended that should Ukraine be part of the European Union as a member state, it would stand as the ninth largest exporter of agriculture within the union.
He mentioned that he has been engaging with EU farmers' groups to tackle their worries regarding the large quantity of Ukrainian imports. This effort is part of Ukraine's initiative to establish a prospective deal with the Commission.