EU to end duty-free trade with Ukraine in June

The European Union (EU) will end its crisis response measures, implemented in 2022 to support the Ukrainian economy, in June.

Speaking at the European Parliament, EU Commissioner for Agriculture Christophe Hansen stated that the regime temporarily lifting customs duties and quotas on Ukrainian products would not be extended.

The EU had suspended customs duties and quotas in 2022 and later extended the validity of this regime, although restrictions were added on the import volumes of certain products such as sugar and poultry.

According to Politico, this practice will expire on June 5 and will not be extended.

The duty-free trade regime for Ukraine has been criticized by farmers and governments in countries such as France, Poland, Hungary, and Slovakia, who argue that the flow of cheap Ukrainian products harms their agricultural markets.

The last three countries imposed restrictions on supplies from Ukraine, violating EU rules.

According to Hansen, the European Commission is preparing a new customs quota system, but this system will “not be at the same level” as the current situation, where goods from Ukraine have almost unlimited access to the EU market.

Hansen noted that the new regulations would still be more favorable than the free trade agreement conditions adopted for Ukraine in 2014, which were in effect until the war began.

Ukrainian officials and farmer associations warn that the expiration of the current rules could lead to a 3.3 billion euro decrease in exports and a 2.5% drop in Gross Domestic Product (GDP).

The Kyiv administration had hoped that Brussels would offer new proposals, but this has not yet happened.

Speaking to Politico, officials familiar with the European Commissioner’s schedule said that Hansen would meet with Ukrainian Minister of Agriculture Vitaliy Koval on Thursday to discuss the steps to be taken.

EU officials acknowledge that it will be difficult to reach an agreement with Ukraine by June.

It is stated that Brussels’ main focus is now shifting to relations with the US, which has launched a full-scale trade war with measures such as a 20% customs duty on imports from the EU and a 25% customs duty on the supply of steel and aluminum.

On Tuesday, Donald Trump also warned that separate customs duties would soon be imposed on pharmaceutical products.