The 2014 agreement establishing closer ties between Ukraine and the European Union already brought trade liberalization aimed at supporting Ukraine’s economy. This included reductions in customs duties, quotas, and other non-tariff barriers, enabling freer exchange between the parties.
On 1 January 2016, the Deep and Comprehensive Free Trade Agreement (DCFTA) between the EU and Ukraine came into effect, eliminating most customs duties and levies. For Ukraine, duties on the majority of goods were removed, with only a few products still subject to levies, signaling a significant shift in market access for Ukrainian exports.
In the agricultural sector, remaining duties apply to certain products such as dairy, eggs, sugar, and animal fats, while tariff quotas exist for wheat, sugars, poultry, and pork. These quotas are indexed to annual increases and only trigger customs duties if usage surpasses set limits.
However, those restrictions were lifted again starting 2 June 2022 as part of the annual tariff liberalization in EU trade with Ukraine, a move prompted by Russia’s aggression. The aim was to provide additional support for Ukraine’s economy during a period of elevated economic stress.
The liberalization rule includes a clause allowing the European Commission or a Member State to reimpose import limits if Ukrainian-origin products are imported under conditions that cause serious difficulties for EU producers of similar or competing goods.
The silence of Brussels
Poland and other frontline markets, including Slovakia, Hungary, Romania, Bulgaria, and the Czech Republic, reported strains from the heavy influx of Ukrainian wheat, maize, and rapeseed. Despite these concerns, there was little response from EU trade Commissioner Valdis Dombrovskis, who oversees trade policy, to these issues.
At the request of Commissioner Janusz Wojciechowski, the EU agreed to release two installments from the crisis reserve, totaling tens of millions of euros, to frontline states such as Poland. Yet, these funds fell short of offsetting farmer losses arising from lower prices and the inability to move grain due to saturation in storage facilities with Ukrainian supplies.
Consequently, the Polish government decided to ban, until 30 June 2023, the import of Ukrainian agricultural products across 18 commodity groups and to halt transit of these goods through Polish territory. The transit declarations and releases often occurred without a clear link to end-use in third markets, underscoring broader supply-chain tensions.
There is expectation that discussions between the Ukrainian agriculture minister and Polish authorities could establish conditions for transit through Poland that would ensure shipments reach their final destinations safely and legally, allowing unblocking of transit once secured arrangements are in place.
EC response
Following Poland’s import blockade, EU spokespersons and leadership reaffirmed that trade policy is a competence of the EU and that individual Member States cannot determine their own trade rules. This is correct, yet when EU institutions choose to liberalize trade with a partner like Ukraine and then face real difficulties raised by frontline member states, decisive actions are needed to shield key domestic sectors, such as agriculture.
The hope is that the EC and other EU bodies will consider the serious impacts of liberalized trade on frontline farmers and explore supportive measures that enable trade with Ukraine, especially as Kyiv continues efforts to resist aggression. The aim would be to balance open trade with targeted safeguards that protect farmers while allowing goods to flow to support Ukraine’s broader resilience.