Commissioner Šefčovič

Good afternoon.

We are pleased to announce that the Commission and Ukraine have reached an agreement in principle on the review of our bilateral Deep and Comprehensive Free Trade Agreement, following the Article 29 consultation process.

This agreement opens a new chapter in EU-Ukraine trade relations.

It establishes a long-term, predictable, and reciprocal framework that benefits exporters, businesses, and farmers on both sides – and reinforces Ukraines path to EU membership.

This aligns perfectly with our dynamic trade relationship, which continues to grow. Trade volumes reached approximately €67 billion in 2024, up from €26 billion in 2016 when the DCFTA first removed most tariffs.

This partnership has also delivered economic benefits for the EU, generating an €18 billion trade surplus.

Todays agreement in principle is balanced, fair, and realistic. It represents the best possible outcome under challenging geopolitical conditions.

Politically, this is a strong signal of unwavering support for Ukraine as it defends its sovereignty and democratic future.

Crucially, it also responds to concerns raised by our Member States, farmers, and food producers.

In one sentence: we listened to you, heard you, and now we act.

Key elements of the agreement include:

• Ukraines commitment to gradually align its agricultural production standards with those of the EU by 2028, in line with its accession goals.
• We have also secured a robust safeguard mechanism to protect EU markets, especially where imports could cause serious difficulties at the EU or Member State level.

This agreement expands trade opportunities for agri-food products.

• For sensitive items, like eggs, sugar, and wheat, quotas will increase but remain below historical trade volumes to ensure EU market stability.
• For less sensitive products, quotas will increase moderately, while some products will be fully liberalized.

Commissioner Hansen will elaborate on these points.

Reciprocally, Ukraine will increase quotas on pork, poultry, and sugar exports and reduce or eliminate duties on other products. This will enhance export opportunities for European farmers, especially in Member States neighboring Ukraine.

We have also agreed to revisit this agreement in the coming years, taking into account Ukraines economic integration and progress on alignment with EU standards.

While the main outlines are now agreed, technical details will be finalized shortly.

Both sides will initiate their respective procedures, with Council endorsement required on the EU side before the agreement comes into force.

Meanwhile, the transitional arrangements introduced after the expiration of ATMs on June 5 will ensure that trade flows continue without disruption.

In closing, I would like to thank Commissioner Hansen for his excellent cooperation throughout this process. My appreciation also goes to the dedicated negotiating teams in the Commission and in Ukraine.

Once again, this is a forward-looking and balanced agreement.

It supports Ukraines European future,

protects the interests of EU farmers,

and provides the stability and predictability our trade relations need in these uncertain times.

Thank you.

*****

Commissioner Hansen

With the Association Agreement between the EU and Ukraine, including its Deep and Comprehensive Free Trade Area (DCFTA), there is a strong and dynamic EU-Ukraine trade relationship. The DCFTA removed the vast majority of all tariffs in our bilateral trade when it entered into force in 2016, and since then our bilateral trade has more than doubled from €26 billion in 2015 to €67 billion in 2024.

Following Russias war of aggression against Ukraine, the EU has taken significant measures to support Ukraine in various ways.

In terms of trade, the EU has been granting autonomous trade measures since June 2022. This unilaterally removed the EU tariffs and quotas for 36 agricultural products that were not removed in 2016. This allowed Ukraines agrifood exports to the EU to develop.

These autonomous trade measures were prolonged twice and have now expired on June 5 and are currently replaced by a transitional regime based on the 2016 quotas. They were exceptional instruments offering a very high level of unilateral liberalization on a yearly basis since 2022, in a moment of great urgency and need. We now need to move to long-term predictability and reciprocity in the broader accession perspective.

Therefore, at the occasion of the last renewal of the ATMs, it was decided that the trading relationship should be put on a more permanent footing through the review of the DCFTA foreseen in Article 29 of the Agreement.

Over recent weeks, constructive talks with Ukraine have taken place to review our bilateral trade agreement. This is essential to ensure a more stable and predictable basis for exporters, businesses, and farmers on both sides. Sensitivities in certain agricultural sectors, notably in the Member States neighboring Ukraine, were fully taken into account.

The Commission is very pleased to announce today that an agreement in principle has been reached with Ukraine.

This agreement comprises several elements.

It includes a commitment from Ukraine to gradually align – by 2028 – to EU production standards in the agricultural sector, such as animal welfare or the use of pesticides.

I want to be very clear on this point: the additional market access granted is conditional on Ukraines alignment to our production standards. Promoting a level playing field for EU farmers was clearly stated in the Vision for Agriculture and Food and we are delivering on this.

This commitment also fits perfectly with Ukraines EU accession path.

We also agreed to include a safeguard mechanism, in particular for cases where imports would cause serious difficulties. This would apply to both parties, and in the case of the EU, it would also apply in the event of adverse effects at the level of specific Member States.

And last but not least, it will provide both Ukraine and the EU with significant further trade opportunities for agri-food products.

Our aim has always been to find the right balance between supporting Ukraines trade with the Union and addressing the sensitivities of a number of EU agricultural sectors and related concerns. Both EU and Ukrainian producers deserve a stable and predictable basis for the future development of bilateral trade.

Let me give you the key elements of the revised market access arrangements for imports from Ukraine into the EU:

• For the most sensitive products, such as sugar, poultry, and eggs, wheat, maize, or honey, the quota increases that were agreed fully reflect the sensitivity of these products. They improve access compared to the 2016 agreement but moderate imports compared to their peak under ATMs. It is important to ensure the stability of EU markets.
• For other products, market access improvements were agreed to reflect trade that is beneficial to both parties based on the complementarity of our respective productions. Most products current quota volumes will increase to the highest level of trade in recent years.
• Here we are talking about, for instance, butter, skimmed milk powder, malt, and gluten, oats, and barley groats.
• Finally, for some products, we agreed to fully liberalize. Examples include some dairy products like whole milk powder, fermented milk, but also mushrooms, grape juice, etc.

In addition, we are also exploring how to support Ukraines exports to its traditional and global agri-food markets. This will also contribute to global food security.

In terms of EU export interests, Ukraine agreed to grant:

• significant increases of quotas for exports of pork, poultry, and sugar, and
• for other products, to reduce further duties or abolishing these altogether.

This will enhance the export possibilities for European farmers, notably in the Member States neighboring Ukraine whose exports of, for example, pork, poultry, and cheese will be more competitive on the Ukrainian market.

Furthermore, we are ready to review the situation again in a few years, especially in the context of its progress in economic integration and its accession prospects.

While now the overall contours of the agreement are there, technical details have still to be finalized in the coming days.

And both sides will also need to go through the respective procedures for endorsing the outcome of these negotiations.

The entry into force will then follow as soon as possible.

In the meantime, the EUs transitional arrangements that were set up following the expiry of ATMs on June 5 ensure that trade flows continue.

Overall, this agreement provides the much-needed stability and predictability for the trade relations between the EU and Ukraine for the period ahead, and with the perspective of Ukraines accession to the Union.