Questions and Answers on the review of the Deep and Comprehensive Free Trade Area with Ukraine
Why did the Commission negotiate this review?
With the expiry of the Autonomous Trade Measures (ATMs) on 5 June 2025, the EU and Ukraine have been negotiating the review of their Deep and Comprehensive Free Trade Area (DCFTA) with the view to offer longer-term predictability and stability to EU and Ukrainian operators. This review is foreseen in Article 29 of the EU-Ukraine Association Agreement.
This review will further strengthen the ties between both parties, bringing them closer and gradually integrating Ukraine into the EU Single Market. This contributes to the unwavering support to Ukraine, including in the perspective of Ukraine's accession to the EU.
What is the content of the agreement?
The agreement in principle that was reached is a balanced one, that takes into account the EU's commitment to provide a long-term solution to operators, the need to continue supporting Ukraine and at the same time Ukraine's expectation to further enhance its dynamic trade relations with the EU while considering the sensitivities of certain agricultural sectors.
The agreement in principle comprises the following:
- Level-playing field: all new market access concessions will be conditioned to the gradual alignment of Ukraine to relevant EU production standards by 2028, e.g. on animal welfare, the use of pesticides and veterinary medicines. Ukraine is expected to report every year on its progress in that regard.
- A robust safeguard clause: both sides agreed to provide for the possibility to invoke a safeguard in case of negative impacts due to the further liberalisation of their bilateral trade. This can be assessed at the level of one or more Member States.
- Enhanced trade flows taking fully into account EU sensitive agricultural sectors: Ukraine will increase quotas volumes for pork, poultry and sugar and will eliminate or reduce its tariffs on goods imported from the EU. On its side, the EU will further open its market to Ukrainian products, compared to before the war, while fully taking into account the sensitivities of certain EU agrifood sectors. This means that tariff rare quotas will be maintained for all sensitive products while trade of less sensitive products or categories in which EU and Ukraine are complementary will be increased or even fully liberalised in some cases.
- Flanking measures: the EU will look at specific EU flanking measures to help Ukrainian exporters regain their traditional markets and get their products to global markets.
- Review clause: with the dynamic nature of trade relations between the EU and Ukraine as well as Ukraine's gradual integration into the EU single market, the agreement in principle includes a clause to review the situation, especially in the context of its progress in economic integration and its accession prospects.
What are the quantities that have been offered to Ukraine?
The changes agreed will allow Ukraine to maintain the level of exports of recent years for many products. This is because these developments reflect economic integration based on complementarity that is beneficial to both sides. Reflecting the sensitivity of some agricultural sectors, more limited changes were made for cereals (in particular wheat and maize), sugar and honey, poultry meat and eggs. No additional volumes were granted for other meats.
On the other hand, less sensitive products, such as fermented milk or grape juice, will be fully liberalised. All those products will be covered by the new safeguard mechanism which will apply not only at EU level, but also in case specific Member States are affected.
At the same time, EU exporters will benefit from lower tariffs or full liberalisation and additional quota volumes at preferential tariffs for poultry, pork and sugar.
What are the flanking measures?
Flanking measures could mean supporting Ukraine to regain its market shares in its traditional markets lost due to Russia's war of aggression. The Commission committed to exploring the feasibility of such measures, in close cooperation with Ukraine.
What about the transitional arrangements that apply as of 6 June 2025?
When the ATMs expired, the current DCFTA tariff rate quotas re-opened on 6 June, ensuring continuity in the trade opportunities for Ukraine's agrifood exports to the EU. These transitional arrangements will continue to apply until the review of the DCFTA is implemented.
What is the expected impact for the EU, and for EU agriculture in particular?
EU agrifood exports to Ukraine steadily increased during the last years and amounted in 2024 to €3.6 billion, representing around 9% of total EU exports to Ukraine. The EU exports a wide range of products, in particular food and other processed agricultural products, including dairy products (close to €300 million in 2024), fresh fruit and vegetables (€280 million in 2024), as well as meat and meat preparations.
The overall trade balance with Ukraine is positive for the EU, and some Member States developed a positive trade balance with Ukraine in sectors like dairy, fruit and vegetables or other more processed foodstuffs. With the DCFTA review, the EU will benefit from lower duties or full liberalisation to export products to Ukraine, in addition to those already reduced at the time of the agreement of the initial DCFTA.
Ukraine will continue to benefit from preferential access to the EU market, being gradually integrated into the EU single market. For many products, Ukraine will be able to continue exporting at least the same volumes as in recent years.
For the most sensitive EU products, the changes to access for Ukraine with respect to the DCFTA have been more limited, to prevent the risk of market disturbances. A safeguard will also protect the EU market from adverse impacts. Besides, the negotiated market access is conditional on the gradual alignment of Ukraine to relevant EU production standards. Ukraine will report every year on its progress in that regard.
Will farmers in countries neighbouring Ukraine be particularly impacted?
Overall, the concessions of additional preferential market access to Ukraine under this review have been carefully calibrated. This will particularly protect farmers in countries neighbouring Ukraine, that had been impacted the most when Russia's war of aggression against Ukraine started, and exports of Ukraine were redirected to the EU market.
With Ukraine committing to align to the EU production standards in view of the EU accession perspective, EU farmers will benefit from a level playing field. The Commission has also committed to exploring how to help Ukrainian exporters regain market shares in their traditional markets. Finally, a safeguard mechanism can be triggered in case of adverse effects in one or more Member States.
How will the safeguard work?
Both sides agreed to include a bilateral safeguard under the review of the DCFTA. This safeguard can be invoked if imports of a product covered by the additional concessions under the review result in adverse effects to either party. For the EU, this includes also the case of adverse effects in one or several Member States.
How does this agreement benefit Ukraine and contribute to support the country?
Ukraine is, and will remain, a key trade partner for the EU. It will continue to benefit from a preferential access to the EU market for all its products. By adopting the EU agrifood production standards, Ukraine will be another step closer to accession.
EU farmers and exporters will continue to benefit from stable and predictable access to a key trading partner, with some access further improved in the interest of both parties.
What are the next steps?
Once the details of the review have been stabilised, the Commission will adopt a proposal for a Decision of the Council, for the Council to endorse the agreement. The agreement will then be formally adopted by the EU-Ukraine Association Committee meeting in the Trade configuration.
Entry into force will follow, as soon as possible.
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