The European Union is not planning to extend trade benefits for Ukraine: here’s what we know.

The agreement with the European Union on duty-free trade is valid until June. At the same time, as noted by Member of Parliament Nina Yuzhanina, there is no talk of returning to the regime that was in place before February 2022.

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The European Commission has initiated technical-level negotiations with Ukraine regarding changes to the terms of preferential trade. This was reported by Nina Yuzhanina, a member of the parliamentary committee on finance, tax, and customs policy.

The special preferential trade regime with Ukraine, which was introduced in 2022 to support the economy, is effective until June 5, 2025. During this period, an agreement is in place for the temporary suspension of various tariffs and quotas on exports to the EU.

After the expiration of this agreement, the European Commission reportedly does not plan to extend it, the deputy noted, adding that a return to the trade regime that existed before the full-scale invasion is not being considered.

Preparatory meetings between the parties are currently taking place, and the main negotiations may begin shortly, stated Nina Yuzhanina.

DCFTA as a potential agreement with the EU

According to information from the Verkhovna Rada, one of the options being considered is an agreement within the framework of the Deep and Comprehensive Free Trade Area (DCFTA), which could involve establishing quotas for specific types of agricultural products and additional safeguards.

According to EU Commissioner for Agriculture Janusz Wojciechowski, most agriculture ministers favor a more stable DCFTA agreement over the continuation of the current regime. There is a preference to move towards the DCFTA, where new export and import volumes will be defined.

Alternative to Europe

Minister of Agrarian Policy and Food Vitaliy Koval emphasized in a conversation with Forbes Ukraine that EU countries require greater predictability. Therefore, the Ministry of Agrarian Policy proposed exporting a specific amount of products monthly according to a schedule.

As of the end of 2024, the share of agricultural exports to the EU decreased from 61% to 52%, and there is a threat that Ukraine could lose its autonomous trade preferences at any moment.

As a result, the relevant ministry plans to diversify exports, reducing the "European" share to 40% while simultaneously increasing trade relations with countries in the Middle East, Africa, and Southeast Asia.

It is worth noting that during 2024, Ukraine exported goods worth $41.6 billion. Most notably, the country exported $24.6 billion worth of food products abroad.