Latest news with #DCFTA
Straits Times
06-06-2025
- Business
- Straits Times
EU reimposes pre-war agri duties on Ukraine, seeks compromise in new deal
BRUSSELS - The European Union reimposed duties and quotas on Ukrainian agricultural products from Friday, and hopes to clinch a deal on new quotas that will be smaller than imports during the last three years after Russia's invasion, the EU's agriculture commissioner told Reuters. The EU temporarily waived duties and quotas on agricultural products in June 2022 after Russia's full-scale invasion to help Ukraine compensate for the higher costs of its exports, after Russia threatened its traditional Black Sea shipping lanes. Those tariff suspensions expired on Thursday. The EU and Ukraine reverted to the pre-war regime of trade quotas on Friday, while the two sides negotiate a new longer-term deal. Brussels is seeking to strike a balance between supporting Ukraine in its war with Russia, and heeding European farmers' concerns about cheaper Ukrainian imports. "What will be negotiated will be something in between the quotas under the existing DCFTA and the autonomous trade measures, the volumes that have been exported there," EU agriculture commissioner Christophe Hansen said in an interview with Reuters on Thursday. The DCFTA refers to Ukraine and the EU's pre-war trade deal. The EU's "autonomous trade measures" temporarily suspended quotas on Ukrainian imports from 2022. Ukraine's farm minister Vitaliy Koval told Reuters this week that Kyiv was pushing for an agreement on higher quotas than it had before the war. EU farmers have complained that large shipments of cheaper Ukrainian sugar imports under the wartime tariff exemptions have undercut local supplies. The EU triggered "emergency brakes" to re-impose quotas on products including sugar and eggs in the past year, in response to surging imports. The EU's Ukrainian sugar imports soared to 400,000 tons in the 2022/23 season and over 500,000 tons in 2023/24, far exceeding the pre-war quota of 20,000 tons. Hansen said the new quotas on sugar would be "significantly higher" than those under the pre-war arrangements. "I think we can absorb a certain amount of those products," he said, while noting sensitivities among European farmers concerned about higher imports of sugar, poultry and eggs. Negotiations on the new EU-Ukraine deal started on June 2. Hansen said it was feasible a deal could be reached by summer. "It depends now on both sides, I think technically that could be feasible," he said. Agricultural goods accounted for about 60% of Ukraine's total exports last year, with the EU buying around 60% of those goods, worth about $15 billion. A senior Ukrainian lawmaker said last month the loss of tariff-free access to the EU market could cost the country 3.5 billion euros ($3.99 billion) in annual revenue. "Our solidarity with Ukraine is as firm as ever, and therefore we are very committed to deliver this agreement as quickly as possible," Hansen said. The pre-war quota regime, which applies as of Friday, also includes lighter rules on import licenses for some goods like poultry and eggs, where instead of requiring licenses, quotas will be allocated on a first-come, first-served basis. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Yahoo
06-06-2025
- Business
- Yahoo
New EU-Ukraine agri trade quotas to be 'in between' current deal and wartime exemptions
By Kate Abnett BRUSSELS (Reuters) -The European Union and Ukraine are negotiating a new deal that will set import quotas on agricultural goods from Ukraine somewhere "in between" current levels and the temporary exemptions granted after Russia's 2022 invasion, the EU's agriculture commissioner told Reuters. The EU temporarily waived duties and quotas on agricultural products in June 2022 after Russia's full-scale invasion to help Ukraine compensate for the higher costs of its exports, after Russia threatened its traditional Black Sea shipping lanes. Those tariff suspensions expired on Thursday. The EU and Ukraine reverted to the pre-war regime of trade quotas on Friday, while the two sides negotiate a new longer-term deal - in which Brussels is seeking to strike a balance between supporting Ukraine in its war with Russia, and heeding European farmers' concerns about cheaper Ukrainian imports. "What will be negotiated will be something in between the quotas under the existing DCFTA and the autonomous trade measures, the volumes that have been exported there," EU agriculture commissioner Christophe Hansen said in an interview with Reuters on Thursday. The DCFTA refers to Ukraine and the EU's pre-war trade deal. The EU's "autonomous trade measures" temporarily suspended quotas on Ukrainian imports from 2022. Ukraine's farm minister Vitaliy Koval told Reuters this week that Kyiv was pushing for an agreement on higher quotas than it had before the war. EU farmers have complained that large shipments of cheaper Ukrainian sugar imports under the wartime tariff exemptions have undercut local supplies. The EU triggered "emergency brakes" to re-impose quotas on products including sugar and eggs in the past year, in response to surging imports. The EU's Ukrainian sugar imports soared to 400,000 tons in the 2022/23 season and over 500,000 tons in 2023/24, far exceeding the pre-war quota of 20,000 tons. Hansen said the new quotas on sugar would be "significantly higher" than those under the pre-war arrangements. "I think we can absorb a certain amount of those products," he said, while noting sensitivities around sugar, poultry and eggs. Negotiations on the new EU-Ukraine deal started on June 2. Hansen said it was feasible a deal could be reached by summer. "It depends now on both sides, I think technically that could be feasible," he said. Agricultural goods accounted for about 60% of Ukraine's total exports last year, with the EU buying around 60% of those goods, worth about $15 billion. A senior Ukrainian lawmaker said last month the loss of tariff-free access to the EU market could cost the country 3.5 billion euros ($3.99 billion) in annual revenue. "Our solidarity with Ukraine is as firm as ever, and therefore we are very committed to deliver this agreement as quickly as possible," Hansen said. The pre-war quota regime, which applies as of Friday, also includes lighter rules on import licenses for some goods like poultry and eggs, where instead of requiring licenses, quotas will be allocated on a first-come, first-served basis. ($1 = 0.8763 euros)
Straits Times
06-06-2025
- Business
- Straits Times
New EU-Ukraine agri trade quotas to be 'in between' current deal and wartime exemptions
New EU-Ukraine agri trade quotas to be 'in between' current deal and wartime exemptions BRUSSELS - The European Union and Ukraine are negotiating a new deal that will set import quotas on agricultural goods from Ukraine somewhere "in between" current levels and the temporary exemptions granted after Russia's 2022 invasion, the EU's agriculture commissioner told Reuters. The EU temporarily waived duties and quotas on agricultural products in June 2022 after Russia's full-scale invasion to help Ukraine compensate for the higher costs of its exports, after Russia threatened its traditional Black Sea shipping lanes. Those tariff suspensions expired on Thursday. The EU and Ukraine reverted to the pre-war regime of trade quotas on Friday, while the two sides negotiate a new longer-term deal. "What will be negotiated will be something in between the quotas under the existing DCFTA and the autonomous trade measures, the volumes that have been exported there," EU agriculture commissioner Christophe Hansen said in an interview with Reuters on Thursday. The DCFTA refers to Ukraine and the EU's pre-war trade deal. The EU's "autonomous trade measures" temporarily suspended quotas on Ukrainian imports from 2022. Ukraine's farm minister Vitaliy Koval told Reuters this week that Kyiv was pushing for an agreement on higher quotas than it had before the war. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Yahoo
27-05-2025
- Business
- Yahoo
EU explains what comes next for Ukraine as trade liberalisation nears expiry
Transitional measures approved by the European Commission on 22 May will take effect from 6 June 2025 following the end of the autonomous trade measures (ATM), which provide a preferential trade regime for Ukrainian exporters. These measures will grant access to tariff quotas within the existing Deep and Comprehensive Free Trade Area (DCFTA) between Ukraine and the EU. Source: European Commission spokesperson Balazs Ujvari, as reported by a correspondent of European Pravda Details: Ujvari said the transitional measures will take effect on 6 June to replace the trade visa-free regime with Ukraine, returning Ukrainian exporters to tariff quotas within the framework of the existing free trade area between Ukraine and the EU. "The Commission is currently working on the review of the EU-Ukraine Deep and Comprehensive Trade Area (DCFTA), with a view to offering longer-term predictability and stability to EU and Ukrainian operators, including in the perspective of the accession of Ukraine to the EU," he said. Ujvari notes that transitional measures will remain in place until Ukraine and the EU complete negotiations on amendments to the existing DCFTA. The revised agreement will include long-term conditions for Ukrainian exporters to the EU, incorporating elements of trade liberalisation. "In order to avoid a possible cliff-edge scenario on 5 June when the ATMs expire, the Commission has prepared transitional measures that will be in place until the DCFTA review negotiations are finalised. These measures take the form of an Implementing Act, which Member States voted on today [22 May] at a meeting of the Committee for the Common Organisation of Agricultural Markets," the spokesperson said. This act, the text of which is available to European Pravda, will provide access to tariff quotas for products originating from Ukraine under the current DCFTA. "The volumes of the quotas available until the end of 2025 will amount to 7/12 of the normal yearly volumes, given that they will be open as of 6 June only and therefore be open for 7 months only this year," Ujvari said. "Additionally, the management of certain quotas normally managed with licences will temporarily switch to a lighter management mode ('first come first served') to ensure that imports from Ukraine benefit from the preferential trade regime under the DCFTA as of the first day the ATM ceases to apply (6 June)," he added. In simple terms, Ukrainian products that required export licences to the EU before 2022 are temporarily exempt from this requirement. Quotas will be allocated on a first-come, first-served basis and will be exhausted as Ukrainian exporters conduct foreign economic operations. Background: European Pravda previously reported that the European Commission adopted a list of transitional measures on Ukrainian exports to the EU on 22 May, which will take effect on 6 June 2025 following the expiry of autonomous trade measures for Ukraine. Back in late April, European Pravda reported that the European Commission did not plan to extend the ATM regime for Ukraine, which remains in effect until 5 June, but would ensure a smooth transition to a new scheme in which all trade liberalisation conditions will be embedded in the EU-Ukraine Free Trade Agreement. The European Parliament voted in favour of introducing a preferential regime for the export of Ukrainian steel and iron from 6 June 2025. Support Ukrainska Pravda on Patreon!
Spectator
21-05-2025
- Business
- Spectator
The EU is being timid with Ukraine
Donald Trump may have pulled the world in a decidedly protectionist direction, but the European Union is not doing its part to lead by example and uphold the ideals of free trade – not even with Ukraine, where the strategic case for free and frictionless trade is overwhelming. On 6 June, the EU is expected to end the existing tariff-free regime introduced after the Russian invasion, subjecting Ukrainian imports of agricultural commodities to very tight caps, as stipulated by the earlier Deep and Comprehensive Free Trade Agreement (DCFTA) between the EU and Ukraine. The DCFTA was supposed to be revised by the June deadline, ideally increasing the quotas for tariff-free imports of agricultural products, but the negotiations have stalled for political reasons, for fear that they would disturb Poland's politics ahead of its presidential election. Ukrainian agricultural exports to the EU – wheat, corn, and poultry, among others – skyrocketed after the invasion. The share of Ukrainian wheat exported to the EU, for example, went up from around 2 per cent before the war to over 50 per cent in 2023, in part because of the disruption of exports from Odesa to countries of the Middle East and Africa.
