The EU may lift trade preferences for Ukraine.

The European Commission may not extend the trade preference regime for Ukraine

The European Commission may not continue the trade preference regime for Ukraine, which ends in June, in its current form, but technical negotiations on new trade terms have already begun.

According to RMF24, the European Commission does not plan to extend the special trade preference regime with Ukraine after June 5, which was introduced in 2022 to support the Ukrainian economy. At the same Time, there is no discussion about returning to the trade regime that existed before the full-scale war - that would be a significant blow for Ukraine, whose exports to the EU have increased even more in recent years.

As an option, an agreement within the framework of the Deep and Comprehensive Free Trade Area (DCFTA) is being considered, which may involve the establishment of quotas on certain types of agricultural products from Ukraine and additional safeguards. This format could facilitate the gradual integration of Ukraine into the EU single market and prepare it for future membership.

'Most ministers of agriculture are in favor of a more stable DCFTA agreement than the continuation of the current regime... They prefer to move towards the DCFTA, where new volumes of exports and imports will be defined,' said European Commissioner for Agriculture Janusz Wojciechowski, adding that this would be the 'best solution.'

According to RMF FM, the European Commission has already started negotiations with Kyiv regarding a new trade agreement - currently at the technical level, while core negotiations are expected to start soon.

An unnamed source in the publication at the European Commission expects that trade support measures for Ukraine will be more modest, and the volumes of agricultural imports from Ukraine to the EU will decrease. He associates this with changes in the leadership of the European Commission and the appointment of Slovak representative Maroš Šefčovič as the new Commissioner for Trade, replacing Latvian Valdis Dombrovskis. Slovakia's position on trade with Ukraine is closer to Poland's stance.

Sources from RMF FM in the European Commission say that the issue is very sensitive, as on one hand, the EU wants to leave the most favorable conditions for Ukraine to support its economy during the war, and on the other hand, fears dissatisfaction among European farmers.