European Parliament takes another step towards extending preferential trade with Ukraine
8 March 2024 11:55
The European Parliament’s International Trade Committee has approved the extension of trade liberalisation measures with Ukraine. This was reported by the press service of the European Parliament, according to Kommersant Ukrainian 
Thus, on Thursday, the Committee approved a proposal to extend the temporary suspension of import duties and quotas on exports of Ukrainian agricultural products to the EU for another year, from 6 June 2024 to 5 June 2025.
At the same time, the EU reserves the right to unilaterally change the rules quickly.
“The legislation empowers the Commission to take swift and any necessary measures in the event of significant disruptions to the EU market or to the markets of one or more EU countries due to Ukrainian imports. It also provides for an emergency brake for particularly sensitive agricultural products, namely poultry, eggs and sugar. That is, if imports of these products exceed the average volumes of 2022 and 2023, duties will be reintroduced,”
– the press service of the European Parliament reported.
According to Sandra Kalniete, a member of the European People’s Party, they managed to find a balance between the interests of Ukraine and the EU:
“The extension of trade measures will ensure that Ukraine can continue to export its agricultural products to the EU – this is essential to save the Ukrainian economy. At the same time, the proposal contains strong guarantees that our farmers will not be overwhelmed by a sudden surge in imports. The Commission will be able to re-impose duties or take any other necessary measures if it finds that imports of certain products are causing market distortions. This is a good balance between continuing our vital support for Ukraine and the necessary protection of our markets.”
The European Parliament is expected to vote on the draft law in the first reading during its plenary session next week. If the Parliament adopts the draft in the first reading, the EU Council will formally approve it and it will enter into force after publication in the EU’s Official Journal.
The preferential trade regime and its opponents
Many EU members do not like the quota-free import of Ukrainian products to the EU, which was in effect in 2022-2023. In particular, a number of Eastern European countries are demanding that the EU impose import duties on Ukrainian goods, citing unfair competition. The ministers of agriculture of Bulgaria, Poland, Hungary, Romania, and Slovakia sent a letter to the European Commission asking for action, saying that cheaper agricultural products from Ukraine were eating into their export markets.
The European Commission took these comments into account when preparing a draft decision to extend the preferential trade regime with Ukraine and issued a compromise version, which is actually quite harsh on Ukrainian products. At the very least, it creates severe barriers to further growth of Ukrainian exports. However, even this option does not suit these countries. Six major European farmers’ associations have also strongly protested against Ukrainian products.
