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EU and Ukraine Seal Pragmatic Trade Deal: Less Ambitious, But Achievable

On Monday, an updated version of the Deep and Comprehensive Free Trade Area (DCFTA)—the main trade agreement linking the EU and Ukraine—was provisionally finalized after extensive discussions over the weekend involving Ukrainian officials, as confirmed by the European Commission.

"The future of Ukraine lies within the family. We continue to be dedicated to fostering joint development and security, paving the way for its complete inclusion into our Union," stated European Commission President Ursula von der Leyen in a message following the agreement’s announcement.

Since 2022, exchanges of goods between the two countries have operated under Autonomous Trade Measures (ATMs). temporary framework Launched following Russia's large-scale military offensive.

The ATMs removed all duties and import limits on Ukrainian farm products entering the EU, providing vital market opportunities in Europe amid the conflict—especially significant for goods like wheat, corn, eggs, and chicken meat.

Agriculture Commissioner Christophe Hansen referred to the ATMs as "remarkable tools providing an exceptionally generous degree of one-sided market opening each year starting from 2022."

The updated accord isn’t as comprehensive as the prior arrangement that ended earlier this month, yet seeks to achieve "an appropriate equilibrium between facilitating Ukraine’s commerce with the Union and taking into account the vulnerabilities within several European agricultural industries along with associated issues," stated Hansen.

The ATM agreement sparked criticism in multiple European Union nations—particularly France and Poland—as agricultural producers demonstrated against the sharp increase in Ukrainian imports after trade restrictions were removed.

This accord marks a fresh start for trade ties between the EU and Ukraine, establishing a stable, transparent, and mutually beneficial structure," stated EU Trade Commissioner Maroš Šefčovič, describing the agreement as "equitable, reasonable, and achievable.

Key provisions

Although the complete version of the agreement has not been released publicly as of now, certain preliminary information has become available.

In pursuit of its goals for joining the European Union, Ukraine has pledged to progressively harmonize its agricultural production standards—covering areas such as animal welfare and pesticide usage—with EU norms by the year 2028.

Strong protective measures will be implemented to shield EU markets, especially when imported goods risk causing major disturbances at the European Union as a whole or within individual countries.

Quotas for delicate commodities such as eggs, sugar, and wheat will rise but remain under past trading levels to ensure price steadiness. Modest rises are expected for less vulnerable goods.

According to the Commission, the sensitivity of each product was assessed by examining previous market disruptions and evaluating the European Union’s capacity to handle extra imports.

The updated quotas represent progress when contrasted with those established in the 2016 DCFTA; however, they still fall short of the complete liberalization offered through the ATMs.

Certain products will undergo complete liberalisation, including dairy items such as whole milk powder and fermented milk, along with mushrooms and grape juice.

Ukraine has committed to substantially raising import limits for pork, poultry, and sugar coming from the European Union, as well as cutting or removing tariffs on various additional goods. According to the Commission, these measures are expected to create better exporting prospects for agricultural producers within the EU, especially those located in countries adjacent to Ukraine.

Next Steps

Both parties will now focus on concluding the technical details of the accord. In the upcoming days, the Commission will submit the agreement to EU member countries and the European Parliament for consideration.

The European Commission will put forward a proposal for a Council decision aimed at officially endorsing the agreement. The final approval will be carried out within the framework of the EU-Ukraine Association Committee.

Šefčovič voiced his belief that the Member States would endorse the agreement, stating: "When we unveil the results of these talks, provide thorough clarification, and demonstrate how this accord brings advantages—not just to Ukraine but also to European Union farmers—we are confident that sufficient backing will follow."

He stressed that the agreement provides "crucial stability and clarity for trade between the EU and Ukraine," particularly considering Ukraine's potential future membership in the EU.

Both sides also consented to review this agreement in future years, considering Ukraine’s economic integration and advancements toward aligning with EU standards.