According to Bloomberg, on April 27, the EU is considering abolishing all tariffs and quotas on Ukrainian exports to support Ukraine’s economy during the war.
The proposal is expected to include the temporary abolition of existing tariffs and quotas on steel, industrial goods, and agricultural products, which are currently not covered by the EU’s trade agreement with Ukraine.
In the EU-Ukraine Free Trade Agreement, specific tariffs and quotas on certain categories of goods should be phased out or excluded from the agreement. The EU is currently proposing to temporarily lift these restrictions. The proposed trade agreements are part of the EU’s efforts to support Ukraine’s economy during and after the war.
Any proposal must be agreed upon with all 27 Member States and the European Parliament before entering into force.
The EU is Ukraine’s main trading partner. According to the results for 2021, the share of trade in goods and services with the EU amounted to 39.0% The value of exports to the EU from Ukraine is 30.43 billion dollars in 2021. Iron, steel, and agricultural products are one of the leading export items of Ukraine.
Value of exports to the European Union (EU) from Ukraine from 2010 to 2021(in billion U.S. dollars)
According to the World Bank, Ukraine’s economy will shrink by more than 40% due to the war, with trade flows particularly affected by Russia’s blocking of the country’s ports.
Earlier this week, Britain announced it would reduce tariffs on all goods from Ukraine to zero.
