The EU and Ukraine have finalized a significant long-term trade agreement. This pact, prominently focused on food and agriculture, aims to liberalize Ukraine’s agrifood exports while integrating them into the EU’s single market.
What is in the EU-Ukraine food deal?
This agreement enhances Ukrainian market access across various food sectors.
Regarding certain “sensitive” commodities—including sugar, poultry, eggs, wheat, maize, and honey—market access will see only marginal improvements, with quotas increased slightly. Meanwhile, some products, particularly meats (with the exception of poultry), remain unchanged.
For other categories, the agreement allows for a substantial degree of liberalization, raising quotas to their highest levels since the onset of Ukraine’s conflict with Russia, as reported by Euractiv. This includes barley, oats, skimmed milk powder, gluten, and malt.
Additionally, a third group of products—such as fermented milk, whole milk powder, grape juice, and mushrooms—will enjoy full liberalization.
In exchange, Ukraine commits to gradually aligning with essential EU production standards, including those relating to veterinary medicines, animal welfare, and pesticide usage.
The market access concessions granted to Ukraine will be contingent upon its adherence to relevant EU standards by 2028. Furthermore, Ukraine will reduce or eliminate tariffs on its goods exported to the EU.
Both parties retain the ability to implement safeguard measures should imports negatively impact either side.
Additionally, the agreement includes provisions to support Ukrainian exporters in accessing their traditional markets outside the EU.
What is the purpose of the deal?
The deal serves a dual purpose: improving Ukrainian access to EU agrifood products while also expanding EU farmers’ access to Ukrainian goods. EU officials tout it as a mutually beneficial arrangement for both Ukrainian and European farmers, ultimately striving to create a balanced playing field across these markets.
European Commission President Ursula von der Leyen stated that this deal builds “bridges of resilience and economic solidarity” amid Ukraine’s war with Russia. Notably, she emphasized the importance of safeguarding EU farmers’ interests.
“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,” added food and agriculture commissioner Christophe Hansen.
What does the agreement replace?
This current trade deal is an updated version of the Deep and Comprehensive Free Trade Area (DCFTA), originally negotiated from 2007 to 2011 and signed in 2014.
Following Russia’s invasion of Ukraine in 2022, the EU made considerable strides in liberalizing trade with Ukraine, allowing tariff-free imports of agricultural goods. This agreement supersedes those arrangements.
These initial provisions were enacted through Autonomous Trade Measures (ATMs), which expired on June 5 this year.
What food does Ukraine export?
Historically recognized as “the breadbasket of Europe,” Ukraine is the largest nation entirely situated on the European continent, primarily due to its robust agricultural production and impressive yields.
According to the World Economic Forum (WEF), Ukraine boasts 42 million hectares of agricultural land, much of it comprising highly fertile black “chernozem” soil.
The country’s key agricultural exports consist of sunflower oil, corn, wheat, rapeseed, and barley.
However, the ongoing conflict with Russia has significantly strained Ukraine’s food exports. Despite an agreement ensuring the continuation of grain exports, recent attacks have cast doubt on its viability, as indicated by the WEF.
