The Commission has completed negotiations with Ukraine on the review of the EU-Ukraine Deep and Comprehensive Free Trade Area (DCFTA). The agreement in principle on the review of the trade liberalisation provisions under the Association Agreement marks a new phase in creating a long-term, predictable, and reciprocal framework within the broader context of Ukraines accession process. It also fully considers the sensitivity of certain agricultural sectors raised by EU Member States and farmers.
This review contributes to the gradual integration of Ukraine into the EUs Single Market and demonstrates that the EUs commitment to supporting Ukraine is stronger than ever. Once adopted, the revised DCFTA will be beneficial for both parties by providing a framework for long-term economic certainty and stable trade relations.
Ursula von der Leyen, President of the European Commission, stated: “With this modernised agreement, we secure trade flows from Ukraine to Europe and global markets. We are also building bridges of resilience and economic solidarity in the face of Russias unjustified war of aggression. At the same time, we continue to safeguard the interests of our farmers. Ukraine belongs in the family. We remain committed to a path of mutual growth and stability, leading to its full integration into our Union.”
The modernised agreement is structured around three key pillars:
- Level-playing field: new market access is conditional on the gradual alignment of Ukraine to relevant EU production standards, such as animal welfare, pesticide use, and veterinary medicines. Ukraine is expected to report annually on its progress in this regard. This approach is consistent with the logic of Ukraines EU accession process and the adoption of the EU acquis.
- A robust safeguard clause: both parties will have the option to activate a safeguard mechanism allowing for appropriate measures to be taken in situations where imports may adversely affect either party. In the EUs case, the assessment of a potential disturbance can occur at the level of one or more Member States.
- Enhanced trade flows: the revised agreement strikes a balance between supporting Ukraines trade with the EU while fully considering the sensitivities of certain EU agricultural sectors and stakeholders. The negotiated market access varies: for the most sensitive items, such as sugar, poultry, eggs, wheat, maize, and honey, there are only modest increases compared to the original DCFTA; for other products, enhancements have been made to benefit both sides based on our complementary markets; and finally, for certain non-sensitive products, full liberalisation has been agreed upon.
Both sides have also agreed to explore measures to assist Ukrainian exporters in reaching their traditional markets in third countries. Furthermore, the EU and Ukraine have agreed to review the situation in the context of its progress in economic integration and accession prospects.
Next steps
Both sides will now work to refine the technical elements of the agreement. Member States and the European Parliament will be informed of the details of the agreement in the coming days.
Subject to final legal revision of the agreement in principle, the EU and Ukraine will now proceed with their respective procedures for the formal endorsement of the revised DCFTA.
On the EU side, the Commission will adopt a proposal for a decision of the Council, for it to endorse the agreement. The agreement will then be formally adopted by the EU-Ukraine Association Committee.
Background
The Association Agreement between the EU and Ukraine, including a Deep and Comprehensive Free Trade Area (DCFTA), was negotiated between 2007 and 2011 and signed on March 21 and June 27, 2014. The DCFTA removed the vast majority of all tariffs, particularly on industrial goods.
Following Russias war of aggression against Ukraine, the EU has granted Ukraine trade facilitations and exceptional instruments offering a high level of unilateral liberalisation annually in the form of Autonomous Trade Measures (ATMs). These have been in effect since June 4, 2022, and renewed twice until their expiration on June 5, 2025, after which transitional measures took effect. Together with the Solidarity Lanes, the ATMs were adopted in response to the major disruptions caused by the war and against the general trend of declining trade for Ukraine overall.
The Commission has consistently aimed to agree on longer-term reciprocal tariff liberalisation with Ukraine under Article 29 of the EU-Ukraine Association Agreement, ensuring a seamless transition to a new framework in which all trade arrangements are integrated into the renewed DCFTA regime.
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