Bracing for Turmoil: EU Mulls Contingencies as Ukraine Talks Heat Up
EU Commission readies for no-deal situation on Ukraine trade arrangement
The European Commission is kicking things into high gear, ready to roll out backup plans if the talks over a future free trade agreement with Ukraine fail to materialize before the existing scheme bites the dust on June 5th.
Time's a-tickin', and with the deadline fast approaching, the Commission is diving headfirst into potential transitional measures. They're diversifying their options, should the negotiations for revising the Deep and Comprehensive Free Trade Area (DCFTA) falter and miss the June 6th application date.
A Commission spokesperson spilled the beans during a press conference last Wednesday. "We've got the clock ticking, so we're also taking a hard look at possible transitional measures, in case the DCFTA revision negotiations don't pan out by June 6th," they said.
The Commission isn't alone in these discussions. They're in cahoots with Ukrainian counterparts, bobbing and weaving through the complexities of the situation together.
But the spokesperson wasn't all doom and gloom. "No deal isn't a foregone conclusion, but it's smart planning on our part to be ready for all eventualities," they added.
Currently, the trade game between the EU and Ukraine is played under the Autonomous Trade Measures (ATMs), temporarily whisking away all tariffs and quotas on Ukrainian agricultural exports. These ATMs were born in response to Mother Russia's full-scale invasion of Ukraine back in 2022.
The ATM party is set to wrap up in June and can't be extended again. The Commission has already made it crystal clear that they have no intention of extending the ATMs past that date.
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- EU Policy
- trade
- European agricultural policy
- European Commission
- Christophe Hansen
- Ukraine
Enrichment Data:
The European Commission is taking a proactive approach, prepping for the possibility of a no-deal scenario in the DCFTA negotiations with Ukraine. These contingency plans involve exploring transitional measures that would help maintain a stable trading environment if the talks don't wrap up by June 6th.
- Laying the Groundwork: The Commission is getting its ducks in a row, preparing for the possibility of a no-deal scenario by considering temporary measures to ensure continuity in trade relations.
- No More ATMs: The Autonomous Trade Measures (ATMs) that have been in place since June 2022 and suspended tariffs and quotas on Ukrainian agricultural exports won't be extended beyond June 5th.
- Revising the DCFTA: The Commission's primary focus is revising the DCFTA to establish long-term stability and predictability for operators on both sides of the border.
- Collaboration with Ukraine: The potential transitional measures are being discussed with Ukrainian counterparts to ensure a smooth transition and preserve trade liberalization.
- The European Commission is laying the groundwork for a no-deal scenario in the DCFTA negotiations with Ukraine, considering temporary measures to maintain a stable trading environment if discussions don't wrap up by June 6th.
- The Autonomous Trade Measures (ATMs) that have been in place since June 2022 and suspended tariffs and quotas on Ukrainian agricultural exports won't be extended beyond June 5th.
- The Commission's primary focus is revising the DCFTA to establish long-term stability and predictability for operators on both sides of the border.
- The potential transitional measures are being discussed with Ukrainian counterparts to ensure a smooth transition and preserve trade liberalization, as the EU braces for turmoil amidst increasing tensions in Ukraine talks.
