FT learned how negotiations on trade liberalization for Ukraine are progressing in the EU against the backdrop of the June 5 deadline: details
Kyiv • UNN
The EU will not extend Ukraine's free access to the market, seeking to agree on broader trade liberalization by June 5. They are working on a "legal bridge" if an agreement is not reached in time.
The European Commission will not extend trade measures granting Ukraine free access to the EU market, instead seeking to negotiate broader trade liberalization before a tough deadline of June 5, an EU representative said, adding that work is underway on a "legal bridge" if an agreement is not reached by then, the Financial Times reports, writes UNN.
Details
The so-called Autonomous Trade Measures (ATMs), which abolish tariffs on Ukrainian goods, have been in effect since Russia's full-scale invasion of Ukraine in 2022 to allow Ukraine to export its agricultural products by land and avoid the disputed Black Sea, the publication notes.
But EU countries bordering Ukraine, including Poland, Hungary, Romania and Slovakia, complain that Ukrainian imports are undermining domestic prices and have sparked unrest among farmers.
The European Commission has introduced an "emergency brake" limiting imports of food products such as eggs, poultry, sugar, oats, corn, cereals and honey, which can be activated once import levels exceed a certain threshold.
"The measures expire in early June and will not be extended this time," the publication writes.
"The decision on the European Council has already been made, the ATMs are coming to an end," said Adam Szłapka, Minister for EU Affairs of the Polish Presidency of the Council of the EU, last week.
"The question is what will replace it. The European Commission promised to negotiate broader bilateral trade liberalization within the framework of the Association Agreement between the EU and Ukraine last year, but the process has not yet started," the publication points out.
Two EU diplomats said that the European Commission postponed the proposal in order not to upset Polish farmers before the presidential elections in Poland on May 18.
"The European Commission is determined to consult with Ukraine... and our goal is to consider mutual tariff liberalization. We are finalizing work on this proposal and will present it to Ukraine as soon as we can," said European Commission spokesman Olof Gill recently.
"The aim of this process is to ensure economic stability and predictability for businesses and farmers in both Ukraine and the EU," Gill added.
But negotiations on this proposal must be completed by June 5 to ensure a "smooth transition", as the European Commission has promised, the publication writes.
"Many fear that this is unlikely, and Ukraine will be left with the trade conditions that existed before the invasion, under which its exports would be subject to high tariffs - something the country cannot afford, amid wavering US support in its war against Russia," the publication reads.
An EU official said they are working on a "legal bridge" in case no agreement is reached by the deadline.
"Trade liberalization must continue because the war is still ongoing," said Olha Stefanishyna, Deputy Prime Minister of Ukraine, last week.
The negotiations should lead to a "transparent and sustainable trade liberalization that takes into account the concerns of the member states, but does not roll back progress," she added.
