Analysts predict that the new trade conditions with the European Union, which will come into effect at the end of October, will lead to a reduction in the volume of Ukrainian product exports to the EU by $1.14 billion annually. This figure is compared to 2024, when temporary Autonomous Trade Measures were in place.
This is reported by Business • Media
Main Reasons and Sectors of Loss
The main factor behind the decline in income for Ukrainian exporters will be a significant reduction in wheat supplies – by $894 million per year. Noticeable losses are also expected in the segments of sugar, barley, poultry meat, eggs, apple juice, and honey. However, experts emphasize that due to the reorientation of exports to other markets, losses for Ukrainian producers may decrease by $891 million – to approximately $250 million per year.
Liberalization of Trade Conditions and Prospects for Exporters
Compared to the tariff quotas that were in place until June 2022, the new agreements signify a substantial liberalization of trade. The EU has completely abolished four tariff quotas and expanded another 26, which specifically relate to honey, sugar, barley groats, and bran. Such liberalization opens up opportunities for increasing duty-free exports of Ukrainian products by up to $630 million annually.
“The new trade agreement with the EU aligns with the ambitions of Ukrainian exports for the next three years.”