Tax and accounting insights for Ukraine
18.05.24
753 0

Extension of the duty-free trade regime for Ukraine for one year

The EU Council has finally approved the extension of the duty-free trade regime for Ukraine for another 12 months. The regime came into effect in June 2022 and will now be applied until June 2025. This was announced by the First Vice Prime Minister of Ukraine, Minister of Economy of Ukraine Yulia Svyrydenko.

"This is an extremely important aspect of political support for Ukraine, despite the sensitivity of the issue of agricultural trade. Most Ukrainian goods are exported to the EU without restrictions under the Association Agreement. In particular, all industrial goods are no longer subject to customs duties. The EU's autonomous trade preferences apply to agricultural products that were not fully liberalized in the Agreement. These are 36 categories of goods for which tariff quotas were provided, as well as goods subject to the system of input prices. As of June 2022, these restrictions have been lifted and now full freedom of trade will be in effect until June 2025," explained Yulia Svyrydenko.

In addition, the EU's autonomous trade preferences stipulate that no anti-dumping or safeguard measures will be applied to steel products.

At the same time, the sharp change in trade flows between Ukraine and the EU, including a sharp increase in trade in certain goods through neighboring EU member states, has led to a number of negative decisions, including the blocking of the border.

"For a long time, we have been working with the governments of neighboring countries and the EU institutions to eliminate these phenomena. As a response to them, the EU Regulation on the extension of autonomous trade preferences contains provisions on special safeguard measures, including automatic measures for corn, poultry, sugar, oats and cereals. The most important thing is that both Ukraine and the EU agreed that this extension of autonomous trade preferences will be the last one, and by next summer the parties will update the Association Agreement to establish the expected terms of trade for the period before joining the EU," said Svyrydenko.

According to her, such negotiations will cover not only duties on agricultural products that have not yet been liberalized, but also production standards, so as to remove prejudice against Ukrainian products. The Government will also try to achieve the removal of all temporary measures taken by neighboring EU member states and Ukraine that contradict the logic of open trade between us.

Currently, the EU accounts for 65% of exports and 51% of imports to Ukraine and is an anchor trading partner for Ukraine.

Ministry of Economy

Buhgalter 911 notes that the content of the author's materials may not coincide with the policy and opinion of the editorial team. The authors of the published materials include not only representatives of the editorial team.

The information presented in a particular publication reflects the position of the author. The editorial team does not interfere with the author's materials, does not edit the texts, and is therefore not responsible for their content.

Для того, чтоб распечатать текст необходимо оформить подписку
copy-print__image