The EU is set to offer further trade concession to Kiev, according to a recent agreement with EU ministers. MEPs approved most of the proposed new concessions with some exceptions:
- Annual additional quota volume of tomatoes reduces to 3000 tons/year from 5000 tons/year; wheat quota from 100,000 to 60,000, maize quota from 650,000 to 625,000, barley from 350,000 to 325,000 and urea, a raw material for fertilisers, does not enjoy further quota preferences than those outlined in the Deep and Comprehensive Free Trade Area (DCFTA),
- the fight against corruption becomes a condition for granting Ukraine preferential exports, and
- industry representatives, not just member states, may request a study on possible measures protecting EU producers.
The agreement was approved by 35 votes to 0 with 3 abstentions
Quote
“It is very positive that we have reached a deal in such a timely fashion, because Ukraine is counting on our support. I am glad we have also managed to address the concerns of the EU producers and farmers”, rapporteur Jaroslaw Walesa (EPP, PL) said.
Next steps
The full House will vote on the trade concessions at the July plenary session in Strasbourg
Quick Facts
The DCFTA, part of the Association Agreement and provisionally applied since January 2016, provides for the mutual opening of markets for goods and services, but the EU reduces and abolishes duties faster. In view of Ukraine’s economic difficulties and its efforts to reform, the EU would offer additional new trade concessions to Kiev. The EU is Ukraine's largest trading partner, whereas Ukraine accounts for 0.8% of the EU's total trade. Ukrainian exports to the EU amounted to €12.7 billion in 2015, while EU exports to Ukraine were at €13.9 billion the same year.
