Since 28 October, Kyiv has moved closer to joining the single market due to the revision of the DCFTA—the deep and comprehensive free trade agreement. It has lowered quotas and tariffs on several goods, but required the gradual alignment of agricultural production standards with those of the EU. Nevertheless, the European Commission has put in place safeguard mechanisms to protect European agricultural markets and supply chains.
Originally, the DCFTA entered into force in 2016. Since 2014, they have considered it as one of the pillars of the EU-Ukraine Association Agreement. Later, in 2022, an interim framework known as ATM, the “Autonomous Trade Measures“, replaced it, suspending pre-existing tariffs and barriers on Ukrainian agricultural exports to the EU and temporarily opening the single market to Kyiv for grains, corn, eggs, poultry, sugar, dairy products, and more.
They renewed the exceptional measures for three years, until June 2025. There are three pillars of the agreement: increased trade flows, alignment of production standards, and a “robust” safeguard clause. Brussels was aimed at striking a balance between further trade liberalization, providing Ukraine with the necessary support and protecting certain agricultural sectors in the Union.
Compared to the original agreement, the increases will remain “modest” for the most sensitive products (sugar, poultry, eggs, wheat, maize, and honey).
Ukrainian goods will access more easily to the single market if Ukraine gradually aligns with EU production standards (animal welfare, the use of pesticides, and veterinary medicines).
Also, the DCFTA has designed safeguard mechanisms to protect European markets, in case of severe disruptions at the EU or national level.
Generally, Brussels assures that it has carefully calibrated “the concessions of additional preferential access to the Ukrainian market and has put in place the necessary safeguards, in particular for farmers in Kyiv’s neighboring countries.”
The 27 member states accepted the terms of the new agreement on 13 October. Nevertheless, Hungary, Poland and Slovakia introduced national bans on the import of certain agricultural products from Ukraine last spring. According to Hungarian Minister of Agriculture István Nagy, Budapest will maintain the ban, despite the DCFTA entering into force.
European Commission didn’t comment on the Orban government’s stance, trying to avoid speaking about this dangerous precedent. It is also lobbying capitals (particularly Paris) to approve another, much more ambitious free trade agreement with the Mercosur countries.
NH Logistics UKR has been offering IOR Importer of Record and EOR Exporter of Record services since 2001 and is a market leader in Ukraine and Eurasia, supporting many clients with their import/export shipments.
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