The European Commission has proposed the renewal of the suspension of import duties and export quotas for Ukrainian exports to the EU for another year, while simultaneously reinforcing the protection of sensitive agricultural products in the EU.

This is in line with the EU's commitments to support Ukraine for as long as needed.

These Autonomous Trade Measures (ATMs) have been in effect since June 2022 and represent a crucial pillar of the EU's steadfast support for Ukraine and its economy. The measures contribute to alleviating the difficult situation faced by Ukrainian producers and exporters due to the unprovoked and unjustified aggression by Russia.

Although the primary objective of ATMs is to support Ukraine, the measures also take into account the sensitivities of farmers and other stakeholders in the EU. To this end, considering a significant increase in imports of certain agricultural products from Ukraine to the EU in 2022 and 2023, the renewed ATMs include a strengthened safeguard mechanism.

This ensures that quick remedial actions can be taken in case of significant disruptions to the EU market or the markets of one or more member states.

For the most sensitive products - poultry, eggs, and sugar - an emergency brake is provided to stabilize imports at the average level of imports in 2022 and 2023.

This means that if imports of these products were to exceed those volumes, tariffs would be reintroduced to ensure that import volumes do not significantly surpass those of previous years.

In parallel, the Commission proposes the renewal of the suspension of all remaining tariffs on imports from the Republic of Moldova for another year, in effect since July 2022.

Next steps

The proposals will be examined by the European Parliament and the Council of the European Union. The objective is to ensure a smooth transition from the current ATM regime to the new regime by the expiration of the current regimes on June 5, 2024, for Ukraine, and July 24, 2024, for Moldova.

Context

In effect since June 4, 2022, Autonomous Trade Measures concerning Ukraine have had a clear positive impact on Ukraine's trade with the EU.

Together with solidarity corridors, ATMs have allowed trade flows from Ukraine to the EU to remain highly stable in 2022 and 2023, despite major disruptions caused by the war and against the overall trend of trade with Ukraine, which has been consistently declining. Total EU imports from Ukraine amounted to EUR 24.3 billion in the 12 months until October 2023, compared to pre-war levels in 2021 of EUR 24 billion.

Unilateral and temporary, ATMs significantly expand the scope of tariff liberalization within the framework of the EU-Ukraine Deep and Comprehensive Free Trade Area by suspending all duties, quotas, and remaining safeguard measures applied to Ukrainian imports during this challenging period for Ukraine.

In parallel, the EU and Ukraine continue discussions on the permanent and reciprocal tariff liberalization under Article 29 of the EU-Ukraine Association Agreement.

ATMs concerning Moldova have been in effect since July 25, 2022. Moldova's exports to the rest of the world have suffered from Russia's military aggression against Ukraine, as they often relied on transit through Ukrainian territory and infrastructure. ATMs have supported Moldova's efforts to redirect exports through the EU.

Overall, exports from the Republic of Moldova to the EU increased from EUR 1.8 billion in 2021 to EUR 2.6 billion in 2022.

The Commission now proposes extending the suspension of all import duties from Moldova for another year. In practice, this means that exports of seven agricultural products from Moldova subject to tariff quotas will continue to be fully liberalized: tomatoes, garlic, table grapes, apples, cherries, plums, and grape juice.