Ukraine has appealed to the European Union to extend the trade preferences granted in connection with Russia’s full-scale invasion at least until the end of this year. This was stated by Ukrainian Prime Minister Denys Shmyhal at a press conference in Brussels on April 9 following a meeting of the Ukraine-EU Association Council.
This is reported by Kyiv24
The Importance of Trade Preferences for Ukraine
The current preferences are set to expire in early June, and Ukraine seeks to secure them for the future in the Association Agreement with the EU. Shmyhal noted that “this issue is indeed important for small and medium-sized businesses that currently have relevant contracts with European partners.” All participants in the discussion agreed that extending the autonomous trade measures until the end of the year is necessary to amend Article 29 of the association agreement and secure duty-free trade.
“This issue is indeed important for small and medium-sized businesses that currently have relevant contracts with European partners,” emphasized Shmyhal.
Next Steps for the European Commission
European Commissioner for Enlargement Olivér Várhelyi stated that this issue will continue to be discussed, and by June 5, the European Commission is expected to present a proposal regarding preferences for Ukraine. Várhelyi noted: “We will now broadly discuss what opportunities exist, but the European Commission will likely propose a solution before the cessation of autonomous trade preferences.”
Earlier, Western media reported that the European Commission is working on a proposal for permanent trade liberalization with Ukraine, which involves categorizing agricultural imports into three categories depending on their sensitivity to the EU market. Sensitive products are likely to include those whose imports are currently limited by quotas, such as eggs, poultry, sugar, or honey.
In May 2022, the EU Council decided to suspend all tariffs and quotas on exports from Ukraine for a year to support the Ukrainian economy amid the war. Despite this, some EU countries, including Bulgaria, Poland, Hungary, and Slovakia, temporarily banned the import of Ukrainian grain in April 2023 due to pressure to protect local farmers.