Kiev concerned about possible loss of preferences in trade with EU
MOSCOW. May 20 (Interfax) - Scrapping the Autonomous Trade Measures (ATM), implemented in June 2022 and expiring on June 6, and reinstating the pre-crisis free trade system would be the worst-case scenario in Ukraine-EU trade, Ukrainian Deputy Economy Minister, Trade Representative Taras Kachka said.
"We will do everything we can to prevent any change from happening at least on June 6," Ukrainian media cited Kachka as saying at the Trade Wars: the Art of Defense conference in Kiev on Tuesday.
As agreed last year, the Autonomous Trade Measures will expire on June 6, 2025, and the European Commission and Kiev will review Article 29 of the Deep and Comprehensive Free Trade Areas (DCFTA) Agreement in order to broaden the access of Ukrainian goods to the EU market and European goods to the Ukrainian market, Kachka said.
"Whereas everything happened to the Autonomous Trade Measures as planned by the European Commission, we somewhat slowed down actions in regard to Article 29 due to a number of external circumstances. I hope we will find a solution if not before June 6 then as soon as possible after June 6," Kachka said. "At least for the time we need to agree on new parameters of trade liberalization, we will have no problem accessing the EU market," he said.
"The situation is trade is far from being as optimistic and friendly as it is in other areas of cooperation with the EU," Kachka said.
Ukraine and the EU achieved a trade balance in 2023 and 2024, although Ukraine has a rather large trade deficit, almost twice as much, he said.
"Obviously, the way to preserve such balanced trade is a subject matter of discussion. We want to keep trade conditions at least as is, or, maybe, even more liberal but controllable. Let us wait and see what happens - I would not get ahead of myself," Kachka said.
The first ATM took effect on June 4, 2022, for one year, while tariffs, quotas and trade restrictions on Ukrainian goods were lifted. The ATM were extended twice, on June 6, 2023, and on June 6, 2024.
Ukrainian farmers are concerned about the return to Article 29 of the DCFTA Agreement, which introduced low quotas for exports of certain types of agrarian goods, after June 5, 2025. The quota for exporting 100,000 tonnes of bio-ethanol may also be reinstated. Negotiations on the possible enlargement of quotas are underway. There are concerns that there is too little time left before June 5 to put this decision into practice.
At the same time, the European Union was c0nsidering the continuation of the preferential imports of Ukrainian mining and metallurgical products in case of cancellation of the ATM. On May 8, the European Parliament supported a decision, which allows extending the existent steel trade system after June 5.
