EU and Ukraine Agree on New Free Trade Area Agreement

ЄС і Україна узгодили довгострокову угоду

The European Union and Ukraine have reached a principled agreement to update the Deep and Comprehensive Free Trade Area agreement. Negotiations between the parties took place against the backdrop of the expiration of the “trade visa-free regime” on June 5, 2025, which was implemented following the onset of Russia’s full-scale aggression against Ukraine.

This is reported by Kyiv24

New Trade Conditions: Changes for Ukrainian Exporters

Under the new agreement, Ukraine will be able to export more goods to the EU than before the war, but less than during the period of the “trade visa-free regime.” The European Commission presented the details of the updated agreements on June 30.

For so-called sensitive goods, including eggs, sugar, and wheat, export quotas will increase, but will remain below historical highs to avoid destabilizing the EU market. For less sensitive products, quotas will be moderately increased, and certain categories of goods will receive full liberalization.

“For sensitive goods such as eggs, sugar, and wheat, quotas are increasing but remain below historical trade volumes to ensure stability in the EU market. For less sensitive products, quotas are increasing moderately, and some goods will be fully liberalized,” explained the essence of the agreements by European Commissioner for Trade and Economic Security Maroš Šefčovič.

A special mechanism is provided to protect the EU internal market, allowing for a rapid response in case the import of Ukrainian products creates significant difficulties for the Union or individual member states.

Harmonization of Standards and Impact on EU and Ukrainian Markets

The agreement envisions a gradual harmonization of agricultural production standards in Ukraine to EU levels by 2028. This specifically pertains to animal welfare and pesticide use. Additional access to the European market will only be granted upon compliance with the relevant EU standards, ensuring a level playing field for Ukrainian and European farmers.

Previously, farmers from some European countries expressed concerns that Ukrainian producers might reduce production costs as they are not required to adhere to strict European regulations on fertilizers and pesticides. This position was notably defended by Poland’s Minister of Agriculture Czesław Siekierski in May 2025.

Maroš Šefčovič emphasized that the new agreement is “balanced, fair, and realistic,” and is expected to further promote bilateral trade growth. According to him, after the trade part of the Association Agreement came into effect, trade volume between the EU and Ukraine more than doubled – from 26 billion euros in 2016 to 67 billion in 2024. At the same time, the EU exports 18 billion euros more in goods to Ukraine than Ukraine exports to the EU.

He also expressed hope that neighboring countries to Ukraine – Poland, Hungary, and Slovakia – would lift unilateral embargoes on certain categories of Ukrainian products that were imposed earlier.

On May 22, 2025, EU member states agreed on transitional measures for Ukrainian trade following the expiration of the “trade visa-free regime.” Thus, starting June 5, Ukraine will be able to export goods to the EU in volumes that were determined before the onset of Russia’s full-scale aggression.