EditEU strikes trade deal with Ukraine to ease tensions over farm imports
Kyiv commits to align by 2028 its farming standards with EU regulations on animal welfare and pesticide use
The European Union and Ukraine have reached a preliminary agreement to update their pre-war free trade pact, aiming to support Kyiv’s war-stricken economy while addressing growing discontent among European farmers over agricultural imports.
Under the outline deal, Ukraine will lower import tariffs and commit to align its farming standards with EU regulations on animal welfare and pesticide use by 2028. In return, the EU will maintain limited access for sensitive Ukrainian goods, while slightly expanding quotas for others.
The move follows widespread protests by farmers in countries such as Poland, Hungary and France, who argue that cheaper Ukrainian food products have disrupted local markets since the EU suspended tariffs and quotas in June 2022, following Russia’s full-scale invasion of Ukraine.
Bilateral trade between the EU and Ukraine reached €67 billion in 2024, up from €26 billion in 2016, with the EU maintaining an €18 billion trade surplus, according to European Commission data. Ukraine is the EU’s third-largest supplier of agri-food products, underscoring the importance of stable trade relations.
The deal must still be formally approved by EU member states and Ukrainian authorities.
EU Trade Commissioner Maroš Šefčovič said the deal represents the “best possible outcome under difficult geopolitical conditions,” balancing solidarity with Ukraine and the concerns of EU farmers.
While supporting Ukraine, the agreement “is also a response to concerns voiced by our member states, farmers and food producers,” he told reporters.
Earlier this month, the EU reinstated its pre-war tariff and quota framework on key products such as sugar, wheat and eggs, pending final negotiations. The new deal would raise quotas modestly, but keep them below historical levels to preserve market stability.
A safeguard clause will also allow the EU to curb imports that cause “serious difficulties” in any member state.
Farm groups, including the influential Copa-Cogeca lobby, welcomed some elements of the agreement but urged caution. “We remain concerned about the outcome on the protection of sensitive sectors,” they said, citing the potential exclusion of barley or ethanol from safeguard mechanisms, quoted by FT.
Poland and Hungary have maintained unilateral bans on certain Ukrainian imports despite EU pressure. Officials in Brussels expect these restrictions to be lifted as part of the new agreement.
Ukraine, which seeks full EU membership, has agreed to align with the bloc’s food safety and production standards. Mykhailo Bno-Airiian, a trade representative at the Federation of Employers of Ukraine, said the agreement could boost Ukrainian export quotas by 20-30%.
“We are not competing with EU producers, but with exporters to the EU, such as Brazil and Thailand,” he said, calling for greater predictability for Ukrainian businesses.
In June 2022, the EU suspended tariffs and quotas on Ukrainian agricultural imports under Autonomous Trade Measures (ATMs) to support Kyiv’s economy after Russia’s blockade of Black Sea export routes. The move facilitated Ukraine’s redirection of grain, poultry, and sugar exports through the EU but led to market disruptions in neighbouring countries like Poland, Hungary, and Bulgaria.
Farmers in these member states protested, claiming cheaper Ukrainian products were undercutting local markets. On 6 June 2025, the EU reinstated pre-war tariffs and quotas as a temporary measure, paving the way for the current negotiations.
The revised DCFTA seeks to balance support for Ukraine’s war-torn economy with protections for sensitive EU agricultural sectors. “This agreement is the best possible outcome under difficult geopolitical conditions,” said Šefčovič. “It shows support for Ukraine by lowering some EU tariffs while responding to concerns voiced by our member states, farmers, and food producers.”
Key features of the revised deal
The updated agreement introduces several key changes:
– Alignment with EU standards: Ukraine has committed to aligning with EU farm production standards, including animal welfare and pesticide regulations, by 2028. This aligns with Ukraine’s EU accession process and ensures a level playing field.
– Safeguard mechanism: A robust safeguard clause allows either party to curb imports causing “serious difficulties” for their markets. For the EU, this can be applied at the Member State level, offering targeted protections.
– Selective market access: Quotas for sensitive products like sugar, wheat, eggs, poultry, maize, and honey will see modest increases, remaining below historic trade volumes to ensure EU market stability. Non-sensitive products, such as fermented milk and grape juice, will benefit from full liberalisation. No additional quotas were granted for other meats, and products like barley and ethanol may lack specific safeguards, raising concerns among EU farming groups.
– Reciprocal market opening: Ukraine will lower tariffs on EU poultry, pork, and sugar, enhancing bilateral trade flows.
The agreement also includes commitments to help Ukrainian exporters regain access to third-country markets disrupted by the war. Periodic reviews will ensure the deal adapts to Ukraine’s economic integration and EU accession progress.
Edited by k.n.
Caption: European Commissioner for Agriculture and Food, Christophe Hansen (L), and European Commissioner for Trade and Economic Security and for Interinstitutional Relations and Transparency, Maros Sefcovic (R), address a press conference on the EU-Ukraine Deep and Comprehensive Free Trade Area in Brussels, Belgium, 30 June 2025. EPA/OLIVIER HOSLET
Updated: July 1, 2025 - 14:46
