Updated Ukraine-EU trade agreement enters into force

The updated trade agreement between Ukraine and the European Union has entered into force.

The European Commission announced this on Wednesday.

"As of today, the EU and Ukraine will benefit from an enhanced, stable, fair and permanent trade framework, with the entry into force of the EU-Ukraine Deep and Comprehensive Free Trade Area (DCFTA). The upgraded DCFTA delivers additional, mutually beneficial trade liberalisation, while taking fully into account the sensitivity of certain EU agricultural sectors," the press release said.

The European Commission noted that the updated DCFTA provides additional, mutually beneficial trade liberalization, while fully taking into account the sensitivity of certain EU agricultural sectors. "It very tangibly illustrates the EU’s unwavering commitment to supporting Ukraine. At the same time, it limits imports of sensitive agricultural products into the EU compared to the levels provided for by the Autonomous Trade Measures (ATMs), establishes new robust safeguards and ensures the alignment of Ukrainian and European production standards," the press release said.

The EC also stated that the DCFTA "will support long-term economic certainty and stable trade relations for both sides, while facilitating Ukraine’s gradual integration into the EU single market."

The updated agreement aims to expand trade flows. In particular, the agreement strikes a balance between ensuring a clear set of rules to support Ukraine’s crucial trade with the EU, while fully taking into account the sensitivities of the EU’s agricultural sectors and stakeholders by carefully calibrating different levels of market access for specific products.

" For the most sensitive items, such as sugar, poultry, eggs, wheat, maize, and honey, there are only modest increases compared to the original DCFTA. For other products, enhancements have been made to benefit both sides, based on our complementary markets. And finally for certain non-sensitive products, full liberalisation has been agreed," the EC said.

Another important area is the agreed production standards: new market access is conditional on Ukraine gradually aligning itself with EU production standards, such as animal welfare, the use of pesticides and veterinary drugs. " Ukraine is expected to report every year on its progress in that regard. This approach is consistent with the logic of Ukraine’s EU accession process and the adoption of the EU acquis," the press release says.

The agreement also provides for "robust safeguard provisions: a safeguard mechanism allowing for appropriate measures to be activated if imports of products covered by the additional liberalisation cause serious difficulties for either party." In the case of the EU, the assessment of possible violations may be carried out at the level of one or more Member States.

In addition, both parties agreed to examine measures aimed at helping Ukrainian exporters access their traditional markets in third countries, which would provide additional commercial opportunities for Ukraine and contribute to global food security.