Home MOREBUSINESS & ECONOMY EU Extends Trade Support for Ukraine & Moldova Amidst Ongoing Challenges

EU Extends Trade Support for Ukraine & Moldova Amidst Ongoing Challenges

by Inna Chefranova
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European Parliament

The European Union has reaffirmed its commitment to supporting Ukraine and Moldova by proposing trade support through the renewal of the suspension of import duties and quotas on Ukrainian exports to the EU for another year.

This move comes as part of the EU’s steadfast dedication to aiding Ukraine and its economy in the face of ongoing adversities.

Since June 2022, the Autonomous Trade Measures (ATMs) have served as a crucial element of the EU’s unwavering support for Ukraine.

These measures play a pivotal role in alleviating the challenges encountered by Ukrainian producers and exporters due to Russia’s unjustified aggression.

By suspending import duties and quotas, the EU aims to bolster trade relations and provide much-needed assistance to Ukraine during these tumultuous times.

While the primary focus of the ATMs is to bolster Ukraine’s economy, the EU remains cognisant of the sensitivities of its own agricultural sector.

Therefore, the renewed ATMs include a reinforced safeguard mechanism, designed to address any significant disruptions to the EU market or the markets of its member states.

Specifically, for sensitive products like poultry, eggs, and sugar, an emergency brake mechanism will be implemented to stabilise imports at average levels from 2022 and 2023.

This precautionary measure ensures that import volumes do not exceed predetermined thresholds, thereby safeguarding the interests of both Ukrainian exporters and EU stakeholders.

In parallel, the EU has also proposed the extension of the suspension of all remaining duties on Moldovan imports for another year, effective since July 2022.

This decision reflects the EU’s commitment to supporting Moldova amidst challenges stemming from regional conflicts and trade disruptions.

The proposals put forth by the European Commission will now undergo scrutiny by the European Parliament and the Council of the European Union.

The objective is to facilitate a seamless transition from the current trade regime to the proposed measures, ensuring continuity and stability for both Ukraine and Moldova.

The current regimes are set to expire on June 5, 2024, for Ukraine and July 24, 2024, for Moldova.

The ATMs have already demonstrated positive outcomes for Ukraine’s trade with the EU, contributing to the stability of trade flows despite the prevailing challenges.

Importantly, these measures have helped sustain trade volumes, with total EU imports from Ukraine reaching €24.3 billion in the 12 months leading up to October 2023.

This figure underscores the resilience of Ukrainian exporters and the effectiveness of EU support mechanisms during times of crisis.

Furthermore, the extension of tariff suspensions for Moldovan imports underscores the EU’s commitment to assisting Moldova in diversifying its export markets and overcoming obstacles posed by regional conflicts.

In conclusion, the EU’s reaffirmation of trade support for Ukraine and Moldova underscores its dedication to fostering economic stability and resilience in the face of adversity.

By extending these critical measures, the EU continues to stand in solidarity with its Eastern partners, reinforcing the bonds of cooperation and mutual support in challenging times.

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Image: By Matt Pearson – Flickr: The Queen Vic, CC BY 2.0, https://commons.wikimedia.org/w/index.php?curid=19190761


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