Ukraine prepares 2 scenarios for EU trade relations after Autonomous Trade Measures expire – minister
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The less Ukrainian agricultural products put pressure on European markets, the easier it will be to negotiate with the European Commission regarding the continuation of trade relations under the Autonomous Trade Measures (ATM), stated Minister of Agrarian Policy and Food Vitaliy Koval in an interview with Interfax-Ukraine.
The minister recalled that in 2021, 36% of Ukraine's agricultural exports were directed to the EU. During the full-scale war, this figure occasionally reached 73%. In 2024, Ukraine reduced its exports to the EU to 52%.
Currently, the Ukrainian government is considering two primary scenarios for developments after the ATM regime expires on June 5. The first, which the Ministry of Agrarian Policy is advocating in negotiations, argues that the war is still ongoing, and Ukraine is requesting an extension of the ATM regime but with an expanded list of sensitive products (currently limited to seven items).
The second scenario, discussed behind closed doors, involves trade liberalization under Article 29, focusing on long-term planning to expand the list of products eligible for import into the EU. This would involve revised and significantly increased quotas, according to the minister.
As an example, Koval cited sugar exports to the EU, which before the war amounted to only 20,000 tonnes per year. However, on a national scale, this volume represents just a few days of production for Ukrainian sugar refineries.
Koval emphasized that the government is preparing for the final stage of negotiations while simultaneously seeking new markets.
"We are reducing the share of the EU in our export geography and looking for alternatives. At the same time, we acknowledge that the EU market remains premium in terms of pricing, logistically convenient, and vital for keeping our producers competitive in terms of quality," he said.
He added that while identifying new export markets, the government is focusing on countries in need of Ukrainian food and has seen significant progress – exports to certain regions grew by over 30% in 2024. Specifically, exports to Africa reached $2.6 billion, while shipments to the Middle East and Southeast Asia also increased. Cooperation with Malaysia, Indonesia, and Bangladesh is expanding.
"The goal of the Ministry of Agrarian Policy is to remove bureaucratic barriers to trade with potential export markets as much as possible," Koval concluded.