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DRAFT REPORT (COM(2024)0050 – C90021/2024 – 2024/0028(COD))

On the proposal for a regulation of the European Parliament and of the Council on temporary trade-liberalisation measures supplementing trade concessions applicable to Ukrainian products under the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part

INTA-PR-758861

Committee on International Trade · Rapporteur: Sandra Kalniete

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The rapporteur's draft report backs the Commission's proposal to extend EU trade-liberalisation measures for Ukrainian products by one more year from 5 June 2024. The proposal suspends outstanding customs duties under the Association Agreement's Deep and Comprehensive Free Trade Area for fruits and vegetables under the entry-price system and for agricultural and processed agricultural products under tariff-rate quotas. It also suspends the relevant parts of the Safeguard Regulation for Ukrainian imports and adds safeguards, including an automatic cap at 2022-2023 levels for poultry, eggs and sugar. The measures depend on Ukraine respecting democratic principles, human rights, fundamental freedoms and the rule of law, and continuing to fight corruption, organised crime and terrorism.

Committee position. The rapporteur supports the Commission's proposal and takes the view that Parliament should adopt it, extending the EU's trade-liberalisation measures for Ukraine for one more year.

Key points

  1. The draft report adopts Parliament's first-reading position taking over the Commission proposal to extend trade-liberalisation measures for Ukraine.
  2. The proposed regulation extends the EU's trade-liberalisation measures for Ukrainian products by another year from their current expiry date of 5 June 2024.
  3. It temporarily suspends all outstanding customs duties under Title IV of the EU-Ukraine Association Agreement establishing a Deep and Comprehensive Free Trade Area.
  4. The suspension covers fruits and vegetables under the entry-price system and agricultural and processed agricultural products under tariff-rate quotas.
  5. The relevant parts of the Safeguard Regulation are temporarily suspended for Ukrainian imports.
  6. The Commission may take any necessary measures, including reintroducing customs duties, if imports of a specific product cause market disturbances in the EU or a member state.
  7. For poultry, eggs and sugar, an automatic safeguard caps duty-free imports at 2022-2023 levels.
  8. The Commission will regularly monitor the impact of the measures on import volumes and prices.
  9. The measures are conditional on Ukraine respecting democratic principles, human rights, fundamental freedoms and the rule of law, and on continued efforts against corruption, organised crime and terrorism.
  10. The rapporteur says the measures express EU solidarity with Ukraine, help stabilise its economy and trade, and support its integration into the EU internal market and path toward EU membership.
  11. The rapporteur concludes that Parliament should adopt the Commission's proposal to extend the measures for one more year.

Who is affected

  • Ukrainian exporters of fruits, vegetables, agricultural and processed agricultural products, poultry, eggs and sugar.
  • EU producers and member states, protected by safeguards against market disturbances and import caps.
  • Ukraine, whose continued trade benefits depend on respect for democratic principles, human rights, the rule of law and anti-corruption efforts.

Figures and deadlines

  • 5 June 2024 — current expiry date of the trade-liberalisation measures.
  • 2022-2023 levels — cap for duty-free imports of poultry, eggs and sugar under the automatic safeguard.

Legal basis: Article 294(2) and Article 207(2) of the Treaty on the Functioning of the European Union.