DG Trade announced the conclusion of 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.

Negotiations continue on quota volumes and fine tuning the technical details. DG Trade circulated the attached document on 4^th July attached document detailing potential revised duty-free quotas volumes:

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

The Commission intends to adopt a proposal for a Decision of the Council, for the Council to endorse the agreement. The agreement will then be formally adopted by the EU-Ukraine Association Committee in Trade Configuration.

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

https://ec.europa.eu/commission/presscorner/detail/en/ip_25_1672