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Uncertainty Over EU–Ukraine Trade Deal: Agricultural Imports Raise Tensions

POLITICSUncertainty Over EU–Ukraine Trade Deal: Agricultural Imports Raise Tensions

On June 5, the Autonomous Trade Measures (ATM) agreement between the EU and Ukraine, introduced three years ago and since extended with modifications, is set to expire. Ukraine hopes for a further extension, but for now, the EU has only agreed to continue duty-free imports of iron and steel. The main concern—especially in Poland—centers on agricultural products. According to Anna Bryłka, a Member of the European Parliament from the Confederation party, the EU should return to the pre-2022 Deep and Comprehensive Free Trade Agreement (DCFTA), as Ukraine can now export via Black Sea ports and the main beneficiaries of unrestricted market access have been large agribusinesses.

“On June 5, the autonomous trade measures liberalizing trade between the EU and Ukraine will expire. The European Commission has proposed a new regulation to extend liberalization only in the area of steel and iron. But there’s still no decision regarding the key agri-food sector and the mass imports we’ve seen since June 2022, when this trade was liberalized,” Bryłka told Newseria news agency. “As a member of the European Parliament’s Committee on International Trade, I know the Commission is considering different scenarios: a new approach to a new association agreement, a short-term solution, or a return to DCFTA rules.”

Before 2022, EU–Ukraine trade was based on the DCFTA agreement (in force since 2016), which also includes Moldova and Georgia. However, after Russia’s full-scale invasion of Ukraine and the blockade of Black Sea ports, the EU adopted autonomous trade measures in June 2022, allowing the duty-free import of Ukrainian goods—including agricultural products.

“That was a gesture of solidarity from the EU in 2022, but this liberalization should not be extended. It doesn’t support ordinary Ukrainian farmers, only massive agroholdings,” Bryłka emphasized. “Ukraine’s agricultural structure is entirely different from that of the EU. These are farms that span tens or even hundreds of thousands of hectares—on a completely incomparable scale. We can’t even accurately estimate Ukraine’s food production potential, especially considering how fast it’s developing. For example, sugar exports rose by 45% year over year. So today, we may be talking about certain goods, but in two or three years it could be entirely different ones. Ukraine has enormous growth potential.”

The ATM agreement has already been extended twice, albeit with amendments. Between 2023 and 2024, farmers in border EU states—Poland, Slovakia, Romania, Bulgaria, and Hungary—organized mass protests and blockades along the Ukrainian border. They argued that the influx of Ukrainian grain filled local storage facilities, created unfair competition, and drove down prices for domestic producers.

“In Poland, we first felt it with grain, then came chickens, soft fruits, berries, sugar,” the MEP listed.

Following farmer protests in January 2024, the European Commission extended the suspension of tariffs but introduced safeguard measures to protect the EU market. These included import quotas for sensitive products like poultry, eggs, sugar, oats, corn, groats, and honey. The safeguards allow tariffs to be reinstated if import levels exceed the average for the second half of 2021 and the full years 2022 and 2023.

“This is an extremely complex issue, especially for frontline countries and the entire agricultural sector in the EU, which is why the Commission’s decisions have been delayed. One of the reasons is fear of new farmer protests,” Bryłka explained. “As for Ukraine, the justification used in 2022—that Ukrainian agricultural products needed to transit through the EU—is no longer valid. The Black Sea and its ports are open again, so Ukraine can export freely in that direction. However, Ukraine still wants open access to the EU market. And its goods are not subject to reciprocity—by admitting Ukrainian products, we allow goods that don’t meet EU food production standards.”

In early May, the European Parliament voted to extend the suspension of tariffs on Ukrainian steel and iron for three years. The proposal passed with 354 votes in favor, 147 against, and 53 abstentions. The measure still requires approval from EU member states. The decision reignited concerns among farmers over the future of grain and other agricultural import policies. Polish EU Affairs Minister Adam Szłapka and representatives from the Ministry of Agriculture denied such concerns. At the European Economic Congress, Agriculture Minister Czesław Siekierski similarly assured that after June 5, the EU will briefly revert to the DCFTA, followed by its reassessment. The level of market openness will not match that of ATM and will be “significantly lower.”

Meanwhile, European Commission trade spokesperson Olof Gill stated that the Commission is finalizing a proposal to transition to a new trade system with Ukraine after the ATM expires. He acknowledged the concerns of farmers and EU member states regarding unrestricted imports of Ukrainian agricultural products. His statement suggests that the ATM will not be extended, but the Commission aims to offer Ukraine an updated version of the DCFTA—and transitional rules if needed.

“We already have a permanent trade agreement with Ukraine—the DCFTA—and we should return to those rules,” said Bryłka. “The war was used by Ukrainian diplomacy to gain access to the EU market, and it will be very difficult to convince Ukraine to go back to the old framework. Ukrainian diplomacy is extremely effective—Ukrainian representatives are present at EU Council and European Council meetings in Brussels, and their lobbying is very strong.”

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