EU, Ukraine Agree to Modernize Trade Relationship
The European Commission and Ukraine reached an agreement in principle on a modernized trade relationship following a review of the EU-Ukraine Deep and Comprehensive Free Trade Area, the commission announced. The new deal centers on an "alignment of Ukraine to relevant EU production standards," a "robust safeguard clause" and improved trade flows, it said.
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Under the deal, Ukraine will align its standards with the EU's regarding "animal welfare, use of pesticides and veterinary medicines" and will report every year on its progress. The new safeguard mechanism can be triggered by one or more EU member states or, "where imports may cause adverse effects," by either side.
To boost trade flows, the EU said, it was particularly sensitive to liberalizing trade in agricultural sectors. As a result, the "negotiated market access varies: for the most sensitive items, such as sugar, poultry, eggs, wheat, maize, and honey," the commission said, there are only "modest increases" compared with the status quo for other goods. For "non-sensitive products," the commission said, full trade liberalization "has been agreed."
The European Council must endorse the agreement.