EU strikes new trade deal with Ukraine over agricultural imports

On June 30, 2025, the European Union announced a new trade agreement with Ukraine regarding agricultural product imports. This agreement comes after a period of customs duty exemption for Ukrainian agricultural products that was in place from 2022 until June 5, 2025, aimed at supporting Ukraine amidst the ongoing conflict with Russia. The measure was aimed at facilitating trade flows as Russia threatened traditional maritime routes for exports. However, the exempted imports led to protests from European farmers who claimed unfair competition due to an influx of cheap Ukrainian goods. The new settlement intends to strike a balance between supporting Ukraine and protecting the interests of European farmers who felt overburdened by the low-priced Ukrainian agricultural products. European Commissioner for Trade Maroš Šefčovič described the new agreement as fair and realistic, which includes the imposition of quotas on sensitive products such as eggs, sugar, and wheat. This indicates the EU's recognition of the concerns raised by farmers in bordering countries, particularly Poland, who feared the effects of unchecked Ukrainian imports on their local markets. The agreement serves to secure trade flows from Ukraine back to Europe while allowing the EU to reinstate tariffs and quotas that were temporarily lifted. Following negotiations, the EU believes that the new terms represent a compromise beneficial to both parties. The agricultural trade relationship between the EU and Ukraine is crucial, with Ukraine being the third-largest exporter of agri-food products to the EU, highlighting the significance of this deal. The negotiations come at a critical time, given the ongoing economic pressures resulting from the war in Ukraine and its impact on global food supply chains. While the new agreement aims to mitigate the risks posed to European farmers, it also reinforces the EU's role as Ukraine's largest trading partner, a position that both parties will likely seek to further develop in the future.