The EU is considering new preferential trade terms with Ukraine

Technical negotiations are underway within the European Union regarding new conditions for preferential trade for Ukraine, as there is information that the European Commission allegedly does not plan to extend the special preferential trade regime with Ukraine after June 5. This does not mean a return to the trade regime that existed before the full-scale invasion and was modified in the first half of 2022 to support the Ukrainian economy.

It is known that among the options being considered is an agreement within the framework of the Deep and Comprehensive Free Trade Area (DCFTA), which could involve the establishment of quotas on certain types of agricultural products and additional safeguards. This, in turn, could facilitate Ukraine's integration into the EU single market. Currently, most agriculture ministers are in favor of a more stable DCFTA agreement than the continuation of the current regime. However, this direction of development does not satisfy all parties. For example, Hungary's Minister of Agriculture István Nagy emphasized that protecting the interests of Hungarian farmers from Ukrainian agricultural products remains Hungary's top priority. He also stated that Ukraine's accession to the EU poses a significant risk to Europe, as it could radically change European agriculture and substantially reduce agricultural subsidies, which could, for instance, bankrupt Hungarian farmers.

Interestingly, recently, Ukraine's Minister of Agrarian Policy and Food Vitaliy Koval stated that the European Union may restrict the import of Ukrainian chicken meat, eggs, honey, and sugar. According to the minister, Ukrainian exporters will have to avoid products that are sensitive for the EU. Additional licensing restrictions and quotas have been introduced on these goods.