European Commission proposes to prolong trade liberalization for Ukraine, Moldova

That’s according to the EC press service, Ukrinform reports.

“The Commission has today proposed to renew the suspension of import duties and quotas on Ukrainian exports to the EU for another year, while reinforcing protection for sensitive EU agricultural products. This is done in line with EU commitments to support Ukraine for as long as it takes,” the press release reads.

In parallel, the Commission proposes to renew by another year the suspension of all remaining duties on Moldovan imports in force since July 2022.

The Autonomous Trade Measures (ATMs) have been in place since June 2022 and are a key pillar of the EU's unwavering support for Ukraine and its economy. The measures help alleviate the difficult situation faced by Ukrainian producers and exporters as a consequence of Russia's unprovoked and unjustified war of aggression, the press service states.

“While the main objective of the ATMs is to support Ukraine, the measures are also mindful of EU farmers' and other stakeholders' sensitivities,” the statement notes. “To this end, and considering a significant increase in imports of some agricultural products from Ukraine to the EU in 2022 and 2023, the renewed ATMs contain a reinforced safeguard mechanism.”

This makes sure that quick remedial action can be taken in case of significant disruptions to the EU market, or to the markets of one or more member states.

For the most sensitive products – poultry, eggs and sugar – an emergency brake is foreseen which would stabilize imports at the average import volumes in 2022 and 2023. This means that if imports of these products were exceeding those volumes, tariffs would be reimposed to ensure that import volumes do not significantly exceed those of previous years.

As reported earlier, in force since 4 June 2022, the ATMs for Ukraine have had a clear positive effect on Ukraine's trade to the EU. Together with the Solidarity Lanes, the ATMs have ensured that trade flows from Ukraine to the EU have remained remarkably stable in 2022 and 2023, despite the major disruptions caused by the war and against the general trend of a decrease in Ukraine's trade overall. Total EU imports from Ukraine amounted to €24.3 billion in the 12 months to October 2023 compared to pre-war levels in 2021 of €24 billion.

Unilateral and temporary in nature, the ATMs significantly broaden the scope of tariff liberalization under the EU-Ukraine Deep and Comprehensive Free Trade Area (DCFTA) by suspending all outstanding duties, quotas and safeguard measures on Ukrainian imports in Ukraine's time of need. In parallel, the EU and Ukraine continue discussions about further permanent and reciprocal tariff liberalization under Article 29 of the EU-Ukraine Association Agreement.

The latest proposals put forward by the European Commission will now be considered by the European Parliament and the Council of the European Union. The goal is to ensure a seamless transition from the current regime of ATMs to the new one, by the time the current regimes expires on 5 June 2024 for Ukraine and 24 July 2024 for Moldova.