The European Commission has agreed a new trade deal with Ukraine in a review which looks to the integration of Ukraine into the Single Market and it says safeguards the interests of EU farmers.
The conclusions of the negotiations followed a review of the EU-Ukraine Deep and Comprehensive Free Trade Area (DCFTA). The agreement in principle on the review of the trade liberalisation provisions establishes ‘a long-term, predictable, and reciprocal framework within the broader context of Ukraine’s accession process’.
Once adopted, the reviewed DCFTA will be beneficial for both sides, says the Commission, by providing ‘a framework for long-term economic certainty and stable trade relations’.
“When negotiating a revised deal for our trade relations with Ukraine, our objectives were clear: keep standing with Ukraine, further align our production standards in view of their accession into the EU, and also have an efficient safeguard mechanism in place to protect our sensitive sectors,” said Agriculture Commissioner Christophe Hansen: “…The concluded agreement is one very important step towards Ukraine’s entry in our single market and towards a level playing field for EU farmers.”
The new, ‘modernised’ agreement is structured around three principles:
- 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. This approach is consistent with the logic of Ukraine’s EU accession process and the adoption of the EU acquis.
- A robust 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 our complementary markets; and finally for certain non-sensitive products, full liberalisation has been agreed.
Both sides have also agreed to explore measures to help Ukrainian exporters reach their traditional markets in 3rd countries. The EU and Ukraine have also agreed to review the situation in the context of its progress in economic integration and its accession prospects.
The 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 proceed with respective procedures for the formal endorsement of the reviewed DCFTA.
