The E.U. is Ukraine's largest trading partner, accounting for more than 40% of its trade in 2015. Ukraine accounts for 0.8% of E.U.'s total trade, with a turnover of €1.16 billion in 2015.
The proposal includes annual tariff rate quotas for 100,000 tonnes of wheat, 650,000 tonnes of corn and 350,000 tonnes of barley. Cecilia Malmström, trade commissioner, presented the proposal while in Kiev, Ukraine. The proposal must be approved by the European Parliament and the Council of European Union. Currently there is no review date for the proposal. If approved the proposal would be effective for three years.
The proposal is an effort to support Ukraine’s economy by increasing trade and to grant concessions in the form of autonomous trade flows concerning the import of certain agricultural products and to grant concessions in the form of autonomous trade measures in selected industrial products in line with the acceleration of the elimination of customs duties on trade between the E.U. and Ukraine, according to the E.U. Office Journal.
The autonomous trade measures would be granted in the form of zero-tariff quotas for certain agricultural products in addition to the preferential tariff-rate quotas set out in the agreement, and the partial or full removal of import duties on several industrial products.
In January, the E.U. and Ukraine provisionally applied the Deep and Comprehensive Free Trade Agreement (DCFTA). The agreement permits both sides to mutually open their markets for goods and services based on predictable and enforceable trade rules.
"We hope this can give a positive boost to the Ukrainian economy,” Malmström said. “Our progress so far is clear, but much work still remains to unleash the full potential of our free trade area."