EU extends trade support to Ukraine for one more year
13.05.2024 23:32 "Agro Perspectiva" (Kyiv) —
The suspension of import duties and quotas on Ukrainian exports to the European Union will be extended for another year, following todays adoption by the Council and April 23 vote in the European Parliament. The EU is thereby delivering once again on its commitment to support Ukraine for as long as it takes. These so-called Autonomous Trade Measures (ATMs) have been in place since June 2022 and are a key pillar of the EUs unwavering support for Ukraine, providing a lifeline to the countrys economy through access to the EU market. The measures are also mindful of EU stakeholders concerns. To this end and considering a significant increase in imports of some agricultural products from Ukraine to the EU in 2022 and 2023 the renewed ATMs contain a reinforced safeguard mechanism. It allows for quick remedial action to be taken in case of significant disruptions to the EU market or the markets of one or more Member States. In addition, an emergency brake applies to eggs, poultry, sugar, oats, maize, groats, and honey, which will be automatically triggered if import volumes reach the average yearly imports recorded between 1 July 2021 and 31 December 2023. Today, the Commissions Directorate-General for Trade has also published those import volumes Now that the ATMs are adopted, the Commission is also taking the necessary steps, through consultations with Ukraine under Article 29 of the EU-Ukraine Association Agreement, to agree on longer term reciprocal tariff liberalisation. This process aims to provide economic certainty and a stable framework for trade to both Ukraine and the EU, as well as to farmers and businesses. This would also represent an important step forward for Ukraines reconstruction and further integration into the EU internal market, with the ultimate goal of securing the countrys future accession to the Union. Next steps The new ATMs will enter into force on 6 June, after the current regime expires on 5 June 2024. They will be in effect until 5 June 2025. Background In force since 4 June 2022, the ATMs have had a clear positive effect on Ukraines trade to the EU. The measures help alleviate the difficult situation faced by Ukrainian producers and exporters as a consequence of Russias unprovoked and unjustified war of aggression. Together with the Solidarity Lanes, the ATMs have ensured that trade flows from Ukraine to the EU have remained remarkably stable in 2022 and 2023 despite the major disruptions caused by the war and against the general trend of a decrease of Ukraines trade overall. EU imports from Ukraine amounted to ˆ22.8 billion in 2023 compared to pre-war levels of ˆ24 billion in 2021. «In the face of the devastation caused by Russia’s war of unprovoked aggression, these renewed ATMs are a vital support to the Ukrainian economy. They will ensure that we keep Ukrainian goods moving, while also taking the concerns of the EU agri-food sector into account. Thanks to the earnings generated from Ukrainian exports to and via the EU, Ukraine will have more financial means to win this war and will be in a stronger position to recover from it», said Valdis Dombrovskis, Executive Vice-President and Commissioner for Trade.
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