ADVERTISEMENTThe European Commission and Ukraine’s government are entering full-fledged negotiations over a new trade deal, with agriculture emerging as the most contentious issue.
Negotiations over a future free trade agreement continued this week following a series of bilateral meetings on the sidelines of the EU-Ukraine Association Council.
A 40-minute exchange on Thursday between EU agriculture Commissioner Christophe Hansen and his Ukrainian counterpart Vitalii Koval was described by an EU official as “frank and constructive.”
Currently, trade between the two partners operates under the so-called Autonomous Trade Measures (ATMs) regime, which temporarily suspends all tariffs and quotas on Ukrainian agricultural exports in response to Russia’s full-scale invasion in 2022.
But the scheme, which has already been renewed once, is set to expire in June and cannot be extended further. A formal free trade agreement must now take its place.
The current arrangement has drawn criticism in several EU member states, particularly France and Poland, where farmers have protested against the surge in Ukrainian agricultural imports since the removal of trade barriers.
Tensions over market access
Earlier this week, Commissioner Hansen signalled that the EU is considering a shift in direction.
“I think it is very clear that it will not be the same quotas and imports that have been allowed over the last period under the autonomous trade measures,” Hansen told MEPs in a hearing.
Until now, the Commission had kept its cards close to its chest, avoiding any concrete signals about its negotiating stance.
“There will be a new tariff rate quota decided, and we stand ready to discuss this. But it will not be at the same level,” he added.
Hansen’s remarks marked the first clear indication that Brussels is preparing to scale back Ukraine’s market access.
By contrast, Ukraine is seeking to maintain the status quo. “We would like to start negotiating with our partners in the European Commission in order to preserve the same level of cooperation we have today and implement it in the new agreement,” Ukrainian Prime Minister Denys Shmyhal said the following day.
Who decides in the end?
Despite the divergence in positions, the atmosphere between negotiators remains cordial. A Ukrainian official confirmed that discussions are “ongoing” and characterised the general mood of the recent Hansen-Koval meeting as friendly.
Koval later issued a statement stressing the importance of a balanced agreement that takes into account both the economic realities of Ukraine and sensitivities for European markets.
“Together with Hansen, we have a clear common vision that trade decisions between Ukraine and the EU should be balanced, mutually beneficial, and contribute to stability for farmers and consumers on both sides of the border,” Koval said.
ADVERTISEMENTWith the ATMs set to expire on 5 June, there is little time left to complete the negotiations. A Commission spokesperson confirmed that work on a new proposal is nearing completion. “The Commission remains fully aware of the concerns of EU farmers and member states regarding the sensitivity of certain agricultural imports,” the spokesperson said.
Hansen won’t finalise the agreement, as responsibility lies with EU Trade Commissioner Maroš Šefčovič.
But according to three EU and diplomatic sources familiar with the talks, even Šefčovič’s influence may be limited: Given the political stakes, final decisions will likely be made by Commission President Ursula von der Leyen’s cabinet.
