What changes await Ukraine’s foreign trade with the EU and the USA

Ukraine is preparing for a shift in trade terms with the European Union. On 5 June, the current autonomous trade preferences will expire, and Brussels has no intention of extending them.

Another challenge for Ukrainian exporters is the large-scale customs war initiated by US President Donald Trump. Among other consequences, this could lead to a reorientation of global trade flows, posing an additional challenge for Ukraine.

Read more about what the government plans to do in response to these risks in the interview with Taras Kachka, Ukraine’s Deputy Minister of Economy and Trade Representative: The trade regime with the EU may become even more liberal, but more controlled. The article is part of the special project "Trade Wars," published with the support of the law firm "Ilyashev & Partners."

After 6 June, we will continue trading with the EU as actively and intensively as before.

In fact, the "trade visa-free regime" for us is not ending, because we are returning to the free trade agreement that had been in place earlier.

Until 6 June, an expanded access regime is in effect, where goods that were only partially liberalised under the free trade area face no restrictions.

The European Commission will conduct a review of our trade regime in accordance with Article 29 of the Association Agreement. Through this mechanism, access for both Ukrainian goods to the EU market and European goods to the Ukrainian market will increase.

I hope we will reach this decision fairly quickly.

However, it’s clear that the situation (in trade) is far less optimistic and friendly compared to other areas of cooperation with the EU.

Our current task is to demonstrate that Ukrainian agricultural products are an integral part of the EU’s food system. Therefore, the EU should place trust in us rather than fear us.

We are not a threat to anyone. Quite the opposite: Ukraine is the largest and most reliable partner for European agriculture.

By the way, the European Union is already making decisions that trade defence measures will not be applied to Ukraine’s industrial products – a crucial issue for metallurgy.

This happened because Ukrainian metallurgy has become more understandable to its European counterpart – with more integration, more stable and systematic supplies, and so on.

The issue of removing tariffs is also on the agenda with the United States. I believe the creation of the (reconstruction investment) fund provides a rationale for establishing a free trade area with the U.S.

Meanwhile, Ukrainian producers continue to operate under very difficult conditions – but they continue to operate.

I believe we won’t see significant changes in trade statistics as a result of the trade wars, although some local issues may arise and will need to be addressed using trade defence tools.

The government is prepared to take a more proactive stance when it comes to imposing or self-imposing certain restrictions. We do have that readiness, but such actions are likely to be targeted rather than widespread.

For the Ministry of Economy, tools that support the production of Ukrainian goods are extremely important.

With countries that we have commitments to under the World Trade Organization and free trade agreements. We do not apply localisation requirements. And interestingly, the list of these countries almost entirely overlaps with those actively helping us.

Meanwhile, countries with which we have no free trade agreements are often not among those supporting Ukraine in its struggle against the aggressor. That’s where localisation applies, and it will continue to expand in line with international standards.