On May 8, the European Parliament passed in first reading the extension of the suspension of import duties and quotas on selected goods from Ukraine—primarily iron and steel—that would otherwise expire on June 5, 2025. While a majority of MEPs supported the proposal, it was met with opposition, particularly from right-wing politicians and farming groups, who voiced concerns about the broader implications for trade liberalization and the agricultural sector.
Trade Support or Favoring Oligarchs?
According to critics like Anna Zalewska, MEP from Poland’s Law and Justice (PiS) party, the suspension of duties is being used as a pretext to benefit a narrow group of Ukrainian oligarchs rather than genuinely support the country’s economy during wartime.
“Once again, the European Commission proposes a suspension of duties—this time for three years—on Ukrainian steel and iron. This is being presented as economic support for Ukraine, but in reality, it supports a few oligarchs who control production,” Zalewska said.
“Moreover, this poses a serious risk to neighboring EU countries, which could be flooded with cheaper, non-ETS-regulated products from Ukraine.”
Since the original trade liberalization under the Autonomous Trade Measures (ATM) in June 2022, these temporary suspensions have been renewed multiple times. The newly adopted regulation would extend duty-free access for iron and steel until June 2028, pending final approval from the European Council.
A Strategic Partnership
Supporters of the extension emphasize its economic and strategic importance. Karin Karlsbro, Swedish MEP and rapporteur from the Renew Europe group, stressed the vital role of Ukraine’s steel industry in the war effort and broader economic resilience.
“Ukraine’s steel industry is the backbone of its defense sector. Despite attacks and labor shortages due to the war, it continues to operate. Strengthening EU–Ukraine trade is not charity—it’s a mutually beneficial exchange,” Karlsbro said.
The vote passed with 354 in favor, 147 against, and 53 abstentions. The agreement now heads to negotiations between the Parliament and the Council of the EU.
Concerns About Agriculture and Trade Scope
Despite assurances from EU officials, many fear the regulation could open a backdoor to duty-free imports of Ukrainian agricultural goods. Farmers and right-wing politicians argue that broad language in the regulation could be used to circumvent existing safeguards on agricultural trade.
“There are no clear EU regulations or certifications in place for these Ukrainian goods,” said Zalewska.
“Farmers are rightly concerned that this could lead to a liberalization of all imports, not just steel and iron, without proper oversight.”
According to Farmer.pl, even though the current proposal does not explicitly mention agricultural products, it effectively suspends protective measures for items not covered by the Common Agricultural Policy, which could indirectly facilitate duty-free imports of certain foodstuffs.
Government Reassurances and Political Tensions
In response to mounting fears, Minister for EU Affairs Adam Szłapka and the Ministry of Agriculture assured that the regulation does not include agricultural imports. Prime Minister Donald Tusk echoed this, stating that Poland and other EU countries would not support any measures that could destabilize the grain market again.
“There will be no new opening of borders to Ukrainian grain that would disrupt our market,” Tusk affirmed.
The European Commission is currently working on a long-term framework to stabilize EU–Ukraine trade relations while preparing for a future free trade agreement once Ukraine’s war ends and formal EU accession negotiations progress.
“Before we can have a permanent trade deal with Ukraine, the war must end, and the country’s borders must be clearly defined,” Zalewska said.
“Full EU membership and stable trade ties require Ukraine to meet all the conditions—it’s a long and demanding process, even if it can be accelerated somewhat.”
As of now, the duty-free extension for Ukrainian iron and steel remains a temporary yet strategic effort to support Ukraine’s economy and defense industry—while raising fundamental questions about how far the EU should go in liberalizing trade during a war.
