Ukraine offers compromise to maintain exports to the EU

Ukraine seeks to continue the autonomous trade arrangements with the EU, but is looking for new sales markets due to the uncertainty of future economic relations.

Ukraine intends to continue trade cooperation with the EU within the framework of autonomous trade arrangements (ATAs) and proposes to expand the list of “sensitive” agricultural products. This was stated by Minister of Agricultural Policy Vitaly Koval to Interfax-Ukraine.

The Minister noted that the future of trade relations between Ukraine and the EU remains uncertain, which forces Kyiv to look for new opportunities for exports.

Two options for cooperation with the European Union are currently being considered:

1. Continuation of autonomous trade arrangements with the possibility of expanding the list of “sensitive” products, which currently has seven.

2. Trade liberalization in accordance with Article 29 of the Association Agreement, which provides for the expansion of the list of goods for export with a review and significant increase in quotas.

According to Koval, preparations for the final stage of negotiations are ongoing, and the less pressure Ukrainian products have on the EU market, the easier it will be to reach agreements.

Now the share of Ukrainian agricultural exports to the EU is gradually decreasing. If before the start of the full-scale war it was 73%, then by the end of 2024 it had decreased to 52%.

“We are reducing the EU’s share in the export structure and are looking for alternatives. At the same time, the European market remains premium in terms of prices, convenient in terms of logistics and necessary to maintain the quality of Ukrainian products,” Koval emphasized.

The European Commission has already made it clear that after June 5 it does not plan to continue trade with Ukraine under the current conditions. At the same time, European Commissioner for Agriculture Christoph Hansen announced a new agreement within the framework of the Deep and Comprehensive Free Trade Area (DCFTA), which is part of the Association Agreement between the EU and Ukraine.

In contrast, Ukraine is actively expanding its export opportunities outside the European Union. In some areas, deliveries increased by more than 30% year-on-year. Thus, exports to Africa have already reached $2.6 billion. Cooperation with the Middle East, Southeast Asia, Malaysia, Indonesia and Bangladesh is also actively developing. As USM recently reported, the European Union is considering the possibility of restricting agricultural imports, which could include products from the United States.