EU and Ukraine reach agreement in principle on modernised trade relationship

On 30 June, the European Commission concluded negotiations with Ukraine on the review of the EU-Ukraine Deep and Comprehensive Free Trade Area (DCFTA). 

This review contributes to the gradual integration of Ukraine into the EU’s Single Market within the broader context of Ukraine’s accession process and fully takes into account the sensitivity of certain agricultural sectors, raised by EU Member States and farmers.

“With this modernised agreement, we are securing trade flows from Ukraine to Europe and global markets. And we are also building bridges of resilience and economic solidarity in the face of Russia’s unjustified war of aggression,” said Ursula von der Leyen, the President of the European Commission. “Ukraine’s place is in the family. We remain committed to a path of mutual growth and stability, leading to its full integration in our Union.”

The modernised agreement is structured around three key pillars:

• Level-playing field: new market access is conditioned to the gradual alignment of Ukraine to relevant EU production standards, such as animal welfare, use of pesticides and veterinary medicines. Ukraine is expected to report every year on its progress in that regard.
• Safeguard clause: both sides will have the possibility to activate a safeguard mechanism enabling the adoption of appropriate measures in situations where imports may cause adverse effects to either party. In the EU’s case, the assessment of a possible disturbance can be done at the level of one or more Member States.
• Enhanced trade flows: the revised agreement strikes a balance between supporting Ukraine’s trade with the EU, and fully considers the sensitivities of certain EU agricultural sectors and stakeholders. The negotiated market access varies: for the most sensitive items, such as sugar, poultry, eggs, wheat, maize, and honey, there are only modest increases compared to the original DCFTA; for other products, enhancements have been made to benefit both sides based on complementary markets; and finally for certain non-sensitive products, full liberalisation has been agreed.

Both sides have also agreed on exploring measures to help Ukrainian exporters reach their traditional markets in third countries. Furthermore, the EU and Ukraine have also agreed to review the situation in the context of its progress in economic integration and its accession prospects.

Both sides will now work to fine tune the technical elements of the agreement. Member States and the European Parliament will be informed about the details of the agreement in the coming days.

Subject to final legal revision of the agreement in principle, the EU and Ukraine will now proceed with their respective procedures for the formal endorsement of the reviewed DCFTA.

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Press release