European Parliament Committee approves extension of duty-free trade with Ukraine

The European Parliament’s Committee on International Trade (INTA) has unchanged its support for the European Commission’s proposal to extend duty-free trade for Ukraine for another year, until June 2025. This was announced on Facebook by Taras Kachka, Deputy Minister of Economy and Trade Representative of Ukraine.

Earlier, this decision was approved by the ambassadors of the EU member states within the Committee of Permanent Representatives (Coreper).

The Ukrainian trade representative explained that a week ago, more than 100 amendments were submitted to the European Commission’s proposal in the agriculture and trade committee. Almost all of them proposed to narrow access to the EU market for Ukrainian products.

«Through active work with member states, especially Poland, with European institutions and MEPs, we managed to reduce the number of amendments that were voted on to two. And they did not get enough votes,» he said.

Kachka also reminded that a joint intergovernmental Ukrainian-Polish commission on trade and economic cooperation is scheduled for March 11.

According to the European Parliament, the legislation gives the EC the authority to take swift action in the event of significant disruptions in the EU market or in the markets of one or more countries of the bloc due to Ukrainian imports. It also provides an emergency brake for particularly sensitive agricultural products, namely poultry, eggs and sugar, if imports of these products exceed the average volumes of 2022 and 2023.

The decision has to be supported by the European Parliament at a plenary session, and a vote is expected next week.

The EU-Ukraine Association Agreement, including the Deep and Comprehensive Free Trade Area, has guaranteed Ukrainian companies preferential access to the EU market since 2016.

Following the start of Russia’s full-scale invasion, the EU introduced autonomous trade measures in June 2022 that allow all Ukrainian goods duty-free access to the bloc’s market. In June 2023, they were extended for a year.

On January 31, 2024, the European Commission proposed to suspend import duties and quotas on Ukrainian and Moldovan exports for another year.

As GMK Center reported earlier, the European Commission proposes to extend the agreement on liberalization of road freight transportation (transport visa-free regime) with Ukraine and Moldova at least until the end of 2025. At the same time, the Commission is considering adding new clauses to facilitate its implementation and ensure compliance by the Member States.