Since the start of the war, Brussels has granted temporary trade benefits to Ukraine. These allowed Ukrainian products, mainly agricultural goods, to be exported to the EU without tariffs or quotas. These benefits have since been adjusted twice, partly following protests from European farmers and politicians in border regions. Negotiations on a new deal are now proceeding slowly.
Last month, the European Commission proposed partially continuing free trade, but with new restrictions on sensitive products such as sugar, poultry, and grains. The European Parliament is currently discussing this proposal but has not yet adopted a final position. Several EU countries fear that their own farmers will be disadvantaged by cheap Ukrainian imports.
At the same time, pressure is growing from the agricultural sector. New figures show that Ukraine in 2024 has become the third largest exporter of agricultural products to the EU. European Agriculture Commissioner Hansen therefore advocates a tightening of the current exemptions. He argues that it is unfair to European farmers to continue this situation.
Ukrainian President Volodymyr Zelensky is calling for more European support. He emphasized this week that investments in Ukrainian infrastructure and agriculture not only help his country but also contribute to food security in Europe. According to Zelensky, closer economic cooperation is essential for the reconstruction of Ukraine.
Criticism of the EU plans also comes from the Ukrainian parliament. Members of parliament refer to it as a ‘political signal’ that weakens European involvement in Ukraine. According to them, continuing trade benefits is an important moral and economic support during wartime, and limiting them reflects caution.
Meanwhile, the deadline is approaching. The current temporary rules expire on June 5 and, according to EU rules, cannot be extended again. As a result, both parties must reach a new agreement within six weeks. If this fails, trade relations will revert to the pre-war regime, with much higher import tariffs and stricter rules.
This time pressure is particularly sensitive because trade is an important element in Ukraine’s broader accession process to the European Union. Both Brussels and Kyiv emphasize that economic integration is necessary to make Ukraine’s EU membership possible. Failure to conclude a trade agreement could therefore have wider political consequences.