European Parliament supports extension of duty-free regime for Ukrainian steel

On May 8, the European Parliament supported the extension of the suspension of import duties and quotas on certain goods from Ukraine, including steel products. This is stated in the report of the EU legislative body.

According to the decision, the preferential regime will be extended for another three years, until June 2028. The current simplifications expire on June 5 this year.

According to Karin Karlsbrough MEP (Renew, Sweden), Ukraine’s steel industry is the backbone of the Ukrainian economy. The industry continues to operate despite the fact that enterprises are under attack from Russia and many employees are fighting on the front line.

“The deepening of trade relations between the EU and Ukraine is not a matter of charity, but a mutually beneficial exchange that strengthens both parties,” she said.

As noted, the European Commission is currently working on a long-term solution to ensure economic certainty of trade between the EU and Ukraine.

The legislative resolution will come into force after its approval by the EU Council and official publication.

“The extension of duty-free trade for Ukrainian steel products is a logical and consistent step in the EU’s support for Ukraine’s economy. The Ukrainian steel industry has no excess capacity and poses no threat to European producers. However, this decision does not seem to be sufficient to deepen trade relations and integration, as the СВАМ will come into force in 2026, which may actually become a new trade barrier. Unfortunately, the issue of how the CBA will be applied to Ukrainian steel products has not yet been settled,” said Andriy Glushchenko, GMK Center analyst.

As GMK Center reported earlier, Ukraine is one of the countries most affected by trade regionalization. There are 28 trade barriers against Ukrainian steel products in 13 countries and economic blocs.

For Ukraine, the EU is a key market where 64% of steel products are exported. Since June 2022, the country has been temporarily excluded from the EU’s steel tariff quota system through the EU’s autonomous trade measures (ATM). This, along with the temporary suspension of anti-dumping duties, has been a key factor for the survival of the Ukrainian steel industry since the beginning of the war.