The EC may not continue preferential trade with Ukraine in its current form: What changes are being proposed?

The European Commission is reportedly considering discontinuing the preferential trade regime for Ukraine as it stands in June and has already begun negotiations on new terms. However, there is no consideration of reverting to the trade regime that existed before the full-scale war – this would severely impact Ukraine, which has seen a significant increase in EU exports in recent years.

An agreement under the Deep and Comprehensive Free Trade Area (DCFTA) is viewed as a possible option, potentially involving the establishment of quotas for certain agricultural products from Ukraine along with additional safeguards. This format could facilitate Ukraine’s gradual integration into the EU single market and prepare it for future membership.

“Most agriculture ministers prefer a more stable DCFTA agreement over an extension of the current regime,” stated European Commissioner for Agriculture Christoph Hansen.

The EC acknowledges the issue’s sensitivity: The EC must balance its desire to support the Ukrainian economy during the war with consideration for the interests of EU farmers.