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Ukrainian Grain & Oilseed Market

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EU and Ukraine reach agreement in principle on a modernised trade relationship

01.07.2025 07:34 "Agro Perspectiva" (Kyiv) — The Commission has concluded negotiations with Ukraine on the review of the EU-Ukraine Deep and Comprehensive Free Trade Area (DCFTA). The agreement in principle on the review of the trade liberalisation provisions under the Association Agreement marks a new phase in establishing a long-term, predictable, and reciprocal framework within the broader context of Ukraine's accession process. It also fully takes into account the sensitivity of certain agricultural sectors, raised by EU Member States and farmers.

This review contributes to the gradual integration of Ukraine into the EU's Single Market and illustrates that the EU's commitment to supporting Ukraine is as firm as ever. Once adopted, the reviewed DCFTA will be beneficial for both sides, by providing a framework for long-term economic certainty and stable trade relations.

Ursula von der Leyen, President of the European Commission, said: “With this modernised agreement, we are securing trade flows from Ukraine to Europe and global markets. And we are also building bridges of resilience and economic solidarity in the face of Russia's unjustified war of aggression. At the same time, we continue to safeguard the interests of our farmers. Ukraine's place is in the family. We remain committed to a path of mutual growth and stability, leading to its full integration in our Union.”

The modernised agreement is structured around three key pillars:

Level-playing field: new market access is conditioned to the gradual alignment of Ukraine to relevant EU production standards, such as animal welfare, use of pesticides and veterinary medicines. 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.

A robust safeguard clause: both sides will have the possibility to activate a safeguard mechanism enabling the adoption of appropriate measures in situations where imports may cause adverse effects to either party. In the EU's case, the assessment of a possible disturbance can be done at the level of one or more Member States.

Enhanced trade flows: the revised agreement strikes a balance between supporting Ukraine's trade with the EU, and fully considers the sensitivities of certain EU agricultural sectors and stakeholders. The negotiated market access varies: 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.

Both sides have also agreed on exploring measures to help Ukrainian exporters reach their traditional markets in 3rd countries. Furthermore, the EU and Ukraine have also agreed to review the situation in the context of its progress in economic integration and its accession prospects.

Next steps

Both sides will now work to fine tune the technical elements of the agreement. Member States and the European Parliament will be informed about the details of the agreement in the coming days.

Subject to final legal revision of the agreement in principle, the EU and Ukraine will now proceed with their respective procedures for the formal endorsement of the reviewed DCFTA.

On the EU side, the Commission will adopt a proposal for a decision of the Council, for it to endorse the agreement. The agreement will then be formally adopted by the EU-Ukraine Association Committee.

Background

The Association Agreement between the EU and Ukraine, including a Deep and Comprehensive Free Trade Area (DCFTA), was negotiated between 2007 and 2011, and signed on 21 March and 27 June 2014. The DCFTA removed the vast majority of all tariffs notably on industrial goods.

After Russia's war of aggression on Ukraine, the EU has granted Ukraine trade facilitations and exceptional instruments offering a high level of unilateral liberalisation on a yearly basis in the form of Autonomous Trade Measures (ATMs). These were in force since 4 June 2022, and twice renewed until their expiration on 5 June 2025, after which transitional measures came into effect. Together with the Solidarity Lanes, the ATMs were adopted in the context of the major disruptions caused by the war and against the general trend of a decrease of Ukraine's trade overall.

The Commission has consistently aimed to agree on longer term reciprocal tariff liberalisation with Ukraine under Article 29 of the EU-Ukraine Association Agreement, ensuring a seamless transition to a new framework in which all trade arrangements are integrated into the renewed DCFTA regime.

Source: commission.europa.eu

Agro Perspectiva

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