The list of EU-sensitive goods is short. But will it help Ukraine to keep its benefits?
27 February 17:35
Ukraine expects to continue its autonomous preferences in trade with the EU. This was stated by Deputy Minister of Economy of Ukraine – Trade Representative of Ukraine Taras Kachka, reports
The official made this statement during the Committee hearings “Strategic guidelines for deepening trade and economic relations between Ukraine and the European Union in the context of Ukraine’s official status as a candidate for accession to the EU.”
What are the problem areas in Ukraine’s trade with the EU?
The Ukrainian side is currently focusing its efforts on three key areas of work.
First, it is harmonizing trade relations with the EU, given that the current rules will remain in place only until June 5.
“We expect to extend autonomous trade preferences after June 6, 2025. At the same time, we are working very actively with our partners to liberalize trade in accordance with the Association Agreement. The good news is that the list of goods that are sensitive to the European Union is short – just a few items. And we hope that we will find a solution for these goods,” said Taras Kachka.
Another key challenge is the CBAM (carbon-based import adjustment) mechanism introduced by the EU. According to Mr. Kachka, Ukraine is negotiating a temporary exemption from the mechanism until the war is over and the country recovers. A declarative approach is also being considered, which would allow reporting emissions without paying the corresponding fees. This is critical for maintaining the competitiveness of Ukrainian producers.
According to Taras Kachka, given the European Commission’s initiative to postpone the full launch of the mechanism (in particular, the sale of CBAM certificates) until 2027, Ukraine will have more time for negotiations.
The third key area is the work towards signing the industrial visa-free regime (ACAA agreement).
“We are working on a plan to significantly expand the ACAA Agreement to cover the maximum number of goods. According to estimates, it can cover up to 80% of industrial exports to the European Union,” said the Ukrainian trade representative.
According to Taras Kachka, everything is being done to conclude the Agreement this year.
European Commission demands pre-war quotas for Ukrainian farmers
A few days ago, the Ministers of Agriculture of Bulgaria, Romania, Slovakia and Hungary in a joint letter called on the European Commission to restore pre-war quotas, introduce measures to protect agricultural products and introduce automatic protection and individual quotas for EU border states.
Hungarian Agriculture Minister István Nagy, who reported on the letter, reminded that the EU regulation governing imports from Ukraine expires in June this year and stressed that the European Commission should find a long-term solution to market difficulties caused by the export of Ukrainian agricultural products.
The European Commission is already conducting technical negotiations with Ukraine
It is reported that at the moment there is no question of a literal return to pre-war trade rules, as this would mean huge losses for Ukraine, which has significantly increased its exports to the EU. The possibility of agreements within the framework of the Deep and Comprehensive Free Trade Area is being discussed, which would mean mutual trade liberalization.
Earlier, European Commissioner for Agriculture Christof Hansen announced the possibility of an agreement within the framework of the Deep and Comprehensive Free Trade Area (DCFTA), which is part of the EU-Ukraine Association Agreement of 2016.
“I think we should work within the DCFTA. Most of the agriculture ministers were in favor of a more stable agreement rather than extending the previous resolution,” Christoph Hansen said, as quoted by RMF FM.
As you know, the resolution on the unilateral suspension of EU duties on Ukrainian agricultural products remains in force until June 5.
