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
Date: 2024-01-31
Institutions: Directorate-General for Trade and Economic Security, European Commission
Subjects: Ukraine, agricultural product, anti-dumping duty, association agreement (EU), import (EU), import price, liberalisation of trade, originating product, tariff exemption, tariff quota

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   EUROPEAN COMMISSION  Brussels, 31.1.2024  COM(2024) 50 final 2024/0028 (COD)  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  
 
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

Russia’s  unprovoked  and  unjustified  war  of  aggression  against  Ukraine  since  24  February 
2022  has  had  a  profound  negative  impact  on  Ukraine’s  ability  to  trade  with  the  rest  of  the 
world,  because of the toll imposed on human lives, the need to  focus on the defence of the 
territory,  vast  populations  being  displaced,  the  destruction  of  production  capacity  and  the 
unavailability of a significant share of transport means due to the restriction of the access to 
the  Black  Sea.  In  this  difficult  context,  in  its  conclusions  of  27  October  2023  and  15 
December  2023,  the  European  Council  underlined  that  it  will  continue  to  provide  strong 
political  and economic support  to  Ukraine for  as long  as it takes.  Furthermore,  Ukraine has 
asked  the  Union  to  facilitate  as  much  as  possible  the  conditions  to  enable  the  country  to 
maintain its trade position with the rest of the world and further deepen its trade relations with 
the Union. Measures to this end include facilitating logistics through the Agreement between 
the  Union  and  Ukraine  on  the  carriage  of  freight  by  road1  and  the  EU-Ukraine  Solidarity 
Lanes and increasing the degree of market liberalisation through Regulation (EU) 2022/870 of 
the European Parliament and of the Council of 30 May 20222 and Regulation (EU) 2023/1077 
of  the  European  Parliament  and  of  the  Council  of  31 May  20233  on  temporary  trade-
liberalisation  measures  supplementing  trade  concessions  applicable  to  Ukrainian  products 
under  the  Association  Agreement.  Regulation  (EU)  2023/1077  entered  into  force  on  6  June 
2023 and  will be in force until  5 June  2024.  These measures  have proven to add flexibility 
and certainty for Ukrainian producers.  

In  view  of  Russia’s  continuing  war  of  aggression  against  Ukraine,  the  resulting  need  to 
continue  to  support  Ukraine  economically,  and  considering  that  Ukraine  was  granted  EU 
candidate  status in  June  2022  and  Accession  Negotiations  were  opened  in  December  2023, 
the  Commission  is  proposing  a  Regulation  of  the  European  Parliament  and  of  the  Council 
renewing these trade-liberalisation measures, which should apply for a period of one year as 
of the date the current measures expire (i.e. as of 6 June 2024):  

– 

1 

2 

3 

Temporary  suspension  of  all  outstanding  customs  duties  under  Title  IV  of  the 
Association Agreement between the EU and Ukraine (hereinafter referred to as ‘the 

See  Council  Decision  (EU)  2022/1158  of  27 June  2022  on  the  signing,  on  behalf  of  the  Union,  and 
provisional application of the Agreement between the European Union and Ukraine on the carriage of 
freight by road (OJ L 179, 6.7.2022, p. 1) and Council Decision (EU) 2022/2435 of 5 December 2022 
on the conclusion, on behalf of the European Union, of the Agreement between the European Union and 
Ukraine on the carriage of freight by road (OJ L 319, 13.12.2022, p. 5) as well as Decision No 2/2023 
of the Joint Committee established by the Agreement between the European Union and Ukraine on the 
carriage of freight by road of 16 March 2023 as regards the continuation of the Agreement (OJ L 123, 
8.5.2023, p. 36). 
Regulation  (EU)  2022/870  of  the  European  Parliament  and  of  the  Council  of  30  May  2022  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 (OJ L  152, 
3.6.2022, p. 103). 
Regulation  (EU)  2023/1077  of  the  European  Parliament  and  of  the  Council  of  31  May  2023  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 (OJ L 144, 
5.6.2023, p. 1). 

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Association  Agreement’)4  establishing  a  deep  and  comprehensive  free  trade  area 
(DCFTA). This concerns two categories of products:  

• 

• 

fruits and vegetables subject to the entry-price system; 

agricultural  products  and  processed  agricultural  products  subject  to  tariff-rate 
quotas. 

– 

Temporary suspension of the application of Chapter V and Article 24 of the common 
rules for imports (safeguards)5 with respect of imports originating in Ukraine. 

These  temporary  and  exceptional  measures  will  contribute  to  continuously  supporting  and 
fostering the existing trade flows from Ukraine to the Union. This is in line with one of the 
main objectives of the Association Agreement, which is to establish conditions for enhanced 
economic and trade relations leading towards Ukraine's gradual integration in the EU Internal 
Market.  

The trade-liberalising measures provided for under the present proposal for a Regulation are 
taken  in  observance  of  the  commitment  in  Article  2  of  the  Association  Agreement  which 
enshrines as an essential element of the Agreement the promotion of respect for the principles 
of sovereignty and territorial integrity, inviolability of borders and independence. In the same 
vein,  the  trade-liberalising  measures  themselves  would  be  conditional  upon  respect  for  the 
same  basic  principles  set  out  in  Article  2,  including  those  providing  that  the  respect  for 
democratic principles, human rights and fundamental freedoms and respect for the principle 
of the rule of law constitute essential elements of that Agreement.  

Furthermore,  the  trade-liberalising  measures  contained  in  this  proposal  aim  at  ensuring,  in 
accordance  with  Article  207(1)  TFEU,  that  the  Union’s  common  commercial  policy  is 
conducted in the context of the principles and objectives of the Union’s external action set out 
in Article 21 TEU.  

According  to  the  proposal,  a  safeguard  mechanism  will  apply  on  the  basis  of  regular 
monitoring,  allowing  for  any  measure  which  is  necessary  to  be  imposed.  The  safeguard 
mechanism  also  includes  an  obligation  for  the  Commission  to  take  measures  if  imports  of 
poultry, eggs, and sugar exceed the arithmetic mean of quantities imported in 2022 and 2023. 

• 

Consistency with existing policy provisions in the policy area 

These  trade-liberalising  measures  would  be  consistent  with  the  implementation  of  the 
Association  Agreement  and  in  particular  with  the  Title  IV  establishing  a  DCFTA,  which 
provides that Parties shall progressively establish a free trade area over a transitional period of 
a maximum of 10 years starting from the entry into force of that Agreement. 

In  addition,  Regulation  (EU)  2023/1077  has  demonstrated  the  EU’s  strong  committment  to 
economically support Ukraine by means of international trade in the context of Russia’s war 

4 

5 

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  (OJ  L 161, 
29.5.2014,  p. 3)  was  signed  by  the  Parties  in  two  parts,  in  March  and  June  2014.  The  Association 
Agreement  has  been  provisionally  applied  in  some  parts  since  1  November  2014.  The  Deep  and 
Comprehensive Free Trade Area (DCFTA) has been provisionally applied since 1 January 2016 and is 
fully in force since 1 September 2017 following ratification by all EU Member States. 
Regulation  (EU)  2015/478  of  the  European  Parliament  and  of  the  Council  of  11  March  2015  on 
common rules for imports (OJ L 83, 27.3.2015, p. 16). 

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of  aggression  against  Ukraine.  The  renewal  of  the  trade-liberalisation  measures  is  a  logical 
extension  of  this  policy as  the  war  of  aggression  as  well  as  Ukraine’s  economic  difficulties 
continue. 

• 

Consistency with other Union policies 

The European Union has strongly condemned Russia’s war of aggression against Ukraine and 
has  undertaken  unprecedented  steps  to  support  Ukraine  in  this  exceptional  context,  ranging 
from  financial  assistance,  including  macro-financial  assistance  for  emergency  measures  and 
reconstruction,  over  the  delivery  of  military  equipment  and  the  adoption  of  extensive 
sanctions  against  Russia  and  Belarus,  to  the  intensification  of  cooperation  under  the 
Association  Agreement.  In  addition,  Ukraine  was  granted  EU  candidate  status in  June  2022 
and Accession Negotiations were opened in December 2023. The proposed Regulation would 
therefore  comply  with  and  follow  from  the  Union’s  obligation  under  Article  21(3)  TEU  to 
ensure consistency between the different  areas of its external  action, as well as with  Article 
207(1) TFEU which provides that the common commercial policy is to be conducted in the 
context of the principles and objectives of the Union’s external actions. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The  legal  basis  for  the  proposal  is  Article  207(2)  of  the  Treaty  on  the  Functioning  of  the 
European Union. 

• 

Subsidiarity (for non-exclusive competence)  

The common commercial policy, in accordance with Article 3(1)(e) of the TFEU, is  defined 
as an exclusive Union competence. Therefore, the subsidiarity principle does not apply. 

• 

Proportionality 

This  proposal  is  necessary  in  order  to  implement  the  common  commercial  policy  and  to 
achieve the objective of supporting Ukraine in its current difficulties economically, also in the 
area of trade with the Union. 

• 

Choice of the instrument 

This  proposal  is  in  accordance  with  Article  207(2)  TFEU,  which  envisages  common 
commercial policy measures.  

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

Not applicable. 

• 

Stakeholder consultations 

Not applicable. 

• 

Collection and use of expertise 

Not applicable. 

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• 

Impact assessment 

In  order  to  ensure  a  continuation  of  the  trade-liberalisation  measures  for  Ukraine  after  the 
expiry  of  Regulation  (EU)  2023/1077  on  5  June  2024,  it  is  important  for  the  Regulation  to 
enter  into  force  on  6  June  2024.  Given  this  necessity  and  the  resulting  urgency  of  this 
proposal,  no  impact  assessment  was  carried  out.  However,  the  trade  and  trade-related 
provisions  of  the  Association  Agreement  have  been  subject  to  a  sustainability  impact 
assessment  commissioned  by  DG  Trade  in  2007  which  fed  into  the  DCFTA  negotiation 
process.  That  study  confirmed  that  implementation  of  trade  and  trade-related  provisions 
would have a positive economic impact for the EU as well as for Ukraine.  

In addition, import flows under Regulation (EU) 2023/1077 are regularly being monitored and 
reported. The monitoring has not shown prima facie evidence of adverse effects on the Union 
Market.  

• 

Regulatory fitness and simplification 

The measure does not increase the regulatory burden of companies.  

• 

Fundamental rights 

These  measures  respect  the  same  basic  principles  as  those  enshrined  in  the  Association 
Agreement  between  the  EU  and  Ukraine.  In  particular,  Article  2  of  the  Association 
Agreement with Ukraine provides that the respect for democratic principles, human rights and 
fundamental  freedoms  and  respect  for  the  principle  of  the  rule  of  law,  constitute  essential 
elements of that Agreement.  

The  trade-liberalising  measures  would  also  be  in  accordance  with  the  European  Charter  on 
Fundamental Rights. 

4. 

BUDGETARY IMPLICATIONS 

Based on an estimation according to the level of import volumes of products covered by the 
proposed  Regulation  in  excess  of  the  annual  duty-free  quota  from  Ukraine  in  2021,  the 
European Union would see a loss of EUR 33.4 million of customs revenue annually. The total 
estimated  amount  is  thus  EUR  33.4  million6  and  therefore  the  impact  on  the  EU’s  own 
resources will be very limited. 

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

On-line  reporting  on  the  evolution  of  bilateral  EU-Ukraine  trade  is  available  via  dedicated 
websites of the European Commission. Regular monitoring of the impact of the Regulation, 
taking  into  account  the  information  on  exports,  imports,  prices  on  the  Union  market  and 
Union production of the products subject to the trade-liberalisation measures shall be made on 
a bimonthly basis. 

• 

Explanatory documents (for directives) 

Not applicable. 

6 

The estimation in excess of the tariff rate quotas amounts to EUR 44.5 million. The loss of traditional 
own  resources  revenue  from  this  Regulation  is  thus  estimated  at  EUR  44.5  million  (gross  amount, 
including collection costs) x 0,75 = EUR 33.4 million for the period in question.  

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• 

Detailed explanation of the specific provisions of the proposal 

In view of the emergency situation in Ukraine, the measure aims at increasing the trade flows 
concerning all imports from Ukraine by suspending all outstanding tariffs and import duties 
applied to Ukrainian products. The trade-liberalising measures would be granted in the form 
of full suspension of import duties on all products. 

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2024/0028 (COD) 

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 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 207(2) thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 
Acting in accordance with the ordinary legislative procedure1, 

Whereas: 

(1) 

(2) 

(3) 

1 

2 
3 

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 
part2  (the  ‘Association  Agreement’)  constitutes  the  basis  of  the  relationship  between 
the Union and Ukraine. In accordance with Council Decision 2014/668/EU3, Title IV 
of  the  Association  Agreement,  which  relates  to  trade  and  trade-related  matters,  has 
been  applied  provisionally  since  1  January  2016,  and  entered  into  force  on  1 
September 2017, following ratification by all Member States. 

The  Association  Agreement  expresses  the  desire  of  the  Parties  to  the  Association 
Agreement  (the  ‘Parties’)  to  strengthen  and  widen  relations  in  an  ambitious  and 
innovative way, to facilitate and achieve gradual economic integration, and to do so in 
compliance  with  the  rights  and  obligations  arising  out  of  the  World  Trade 
Organization membership of the Parties. 

Article 25 of the Association Agreement provides for the progressive establishment of 
a free trade area between the Parties in accordance with Article XXIV of the General 
Agreement on Tariffs and Trade 1994 (‘GATT 1994’). To that end, Article 29 of the 
Association Agreement provides for the progressive elimination of customs duties in 

Position  of  the  European  Parliament  of  dd.mm.2024  (not  yet  published  in  the  Official  Journal)  and 
decision of the Council … 
OJ L 161, 29.5.2014, p. 3. 
Council Decision 2014/668/EU of 23 June 2014 on the signing, on behalf of the European Union, and 
provisional application of 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, as 
regards Title III (with the exception of the provisions relating to the treatment of third-country nationals 
legally employed as workers in the territory of the other Party) and Titles IV, V, VI and VII thereof,  as 
well as the related Annexes and Protocols (OJ L 278, 20.9.2014, p. 1). 

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accordance with the Schedules included therein and for the possibility of accelerating 
and broadening the scope of such elimination.  

Russia’s  unprovoked  and  unjustified  war  of  aggression  against  Ukraine  since 
24 February 2022  has  had  a  profoundly  negative  impact  on  the  ability  of  Ukraine  to 
trade with the rest of the world, both because of the destruction of production capacity 
and  the  unavailability  of  a  significant  proportion  of  means  of  transport  due  to,  for 
example,  the  restriction  and  uncertainty  of  access  to  the  Black  Sea.  Under  such 
exceptional  circumstances  and  to  mitigate  the  negative  economic  impact  of  Russia’s 
war  of  aggression  against  Ukraine,  it  is  necessary  to  accelerate  the  development  of 
closer  economic  relations  between  the  Union  and  Ukraine  in  order  to  provide 
continued support to the Ukrainian authorities and population. It is therefore necessary 
and  appropriate  to  continue  stimulating  trade  flows  and  granting  concessions  in  the 
form of trade-liberalisation measures for all products, in line with the acceleration of 
the elimination of customs duties on trade between the Union and Ukraine. 

In accordance with Article 21(3) of the Treaty on European Union (TEU), the Union is 
to  ensure  consistency  between  the  different  areas  of  its  external  action.  Pursuant  to 
Article 207(1)  of  the  Treaty  on  the  Functioning  of  the  European  Union  (TFEU),  the 
common  commercial  policy  is  to  be  conducted  in  the  context  of  the  principles  and 
objectives of the Union’s external action. 
Regulation (EU) 2023/1077 of the European Parliament and of the Council4 expires on 
5 June 2024. 

The temporary trade-liberalisation measures established by this Regulation should take 
the following form: (i) the suspension of the application of the entry price system to 
fruit and vegetables; (ii) the suspension of tariff-rate quotas and import duties; and (iii) 
the  suspension  of  the  application  of  Chapter  V  and  Article  24  of  Regulation  (EU) 
2015/478  of  the  European  Parliament  and  of  the  Council5.  Through  those  measures, 
the  Union  will,  in  effect,  temporarily  provide  appropriate  economic  and  financial 
support to the benefit of Ukraine and the economic operators that are affected. 

In order to prevent fraud, the preferential arrangements established by this Regulation 
should  be  conditional  upon  Ukraine  complying  with  all  the  relevant  conditions  for 
obtaining  benefits  under  the  Association  Agreement,  including  the  rules  of  origin  of 
products  concerned  and  the  procedures  related  thereto,  as  well  as  Ukraine’s 
involvement in close administrative cooperation with the Union, as provided for by the 
Association Agreement. 

The  preferential  arrangements  established  by  this  Regulation  should  also  be 
conditional  upon  Ukraine  abstaining  from  introducing  new  duties  or  charges  having 
equivalent  effect  and  new  quantitative  restrictions  or  measures  having  equivalent 
effect,  from  increasing  existing  levels  of  duties  or  charges,  or  from  introducing  any 
other  restrictions  on  trade  with  the  Union,  unless  clearly  justified  in  the  context  of 
Russia’s war of aggression. 

Regulation  (EU)  2023/1077  of  the  European  Parliament  and  of  the  Council  of  31  May  2023  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 (OJ L  144, 
5.6.2023, p. 1-6). 
Regulation  (EU)  2015/478  of  the  European  Parliament  and  of  the  Council  of  11  March  2015  on 
common rules for imports (OJ L 83, 27.3.2015, p. 16). 

(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

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(10)  The  preferential  arrangements  established  by  this  Regulation  should  also  be 
conditional  upon  Ukraine’s  continued  respect  for  the  general  principles  of  the 
Association  Agreement.  In  this  regard,  Article  2  of  the  Association  Agreement 
provides, among other things, that respect for democratic principles, human rights and 
fundamental freedoms, the promotion of respect for the principles of sovereignty and 
territorial  integrity,  inviolability  of  borders,  and  independence  as  well  as  countering 
the proliferation of weapons of mass destruction, related materials and their means of 
delivery  constitute  essential  elements  of  the  Association  Agreement.  Furthermore, 
Article 3 of the Association Agreement states that the rule of law, good governance, 
the  fight  against  corruption,  the  fight  against  the  different  forms  of  trans-national 
organised crime and terrorism, the promotion of sustainable development and effective 
multilateralism are central to enhancing the relationship between the Parties. 

(11)  Subject to an assessment by the Commission carried out in the context of the regular 
monitoring  of  the  impact  of  this  Regulation  and  launched  either  following  a  duly 
substantiated request from a Member State or on the Commission’s own initiative, it is 
necessary to provide for the possibility to take any necessary measures for imports of 
any products falling under the scope of this Regulation which are adversely affecting 
the Union market  or the market  of one or several  Member States  for like or directly 
competing  products.  There  is  a  particularly  precarious  situation  in  the  markets  for 
poultry, eggs, and sugar  that may harm Union agricultural producers if imports from 
Ukraine  were  to  increase.  It  is  appropriate  to  introduce  an  automatic  safeguard  for 
eggs,  poultry,  and  sugar  products  that  is  activated  if  quantities  imported  pursuant  to 
this Regulation exceed the arithmetic mean of quantities in 2022 and 2023. 

(12) 

In  order  to  ensure  uniform  conditions  for  the  implementation  of  this  Regulation, 
implementing powers should be conferred on the Commission to temporarily suspend 
the preferential arrangements provided in Article 1(1) if the conditions for entitlement 
to  those  preferential  arrangements  are  no  longer  complied  with  and  to  introduce 
safeguards in cases where the Union market or the market of one or several Member 
States of like or directly competing products are adversely affected by imports under 
this  Regulation.  Those  powers  should  be  exercised  in  accordance  with  Regulation 
(EU)  No 182/2011  of  the  European  Parliament  and  of  the  Council6.  Advisory 
procedure  should  be  used  for  the  adoption  of  provisional  safeguard  measures,  given 
the  effects  and  nature  of  those  measures  and  their  sequential  logic  in  relation  to  the 
adoption of definitive safeguard measures.  

(13)  The  Commission’s  annual  report  on 

the  Deep  and 
Comprehensive  Free  Trade  Area,  which  is  an  integral  part  of  the  Association 
Agreement, should include a detailed assessment of the implementation of the trade-
liberalisation measures established by this Regulation. 

implementation  of 

the 

(14) 

In view of the urgency of the matter related to the situation caused by Russia’s war of 
aggression against Ukraine, it is considered to be appropriate to invoke the exception 
to  the  eight-week  period  provided  for  in  Article  4  of  Protocol  No  1  on  the  role  of 
national Parliaments in the European Union, annexed to the TEU, to the TFEU and to 
the Treaty establishing the European Atomic Energy Community. 

6 

Regulation  (EU)  No  182/2011  of  the  European  Parliament  and  of  the  Council  of 16 February 2011 
laying down the rules and general principles concerning mechanisms for control by Member States of 
the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13). 

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(15) 

In  light  of  expiry  of  Regulation  (EU)  2023/1077  on  5  June  2024,  this  Regulation 
should enter into force on 6 June 2024, 

HAVE ADOPTED THIS REGULATION: 

Article 1 
Trade-liberalisation measures 

1. 

The following preferential arrangements are introduced: 

(a) 

(b) 

the application of the entry price system shall be suspended for those products 
to which it applies as specified in Annex I-A to the Association Agreement. No 
customs duties shall apply to imports of those products; 

all  the  tariff-rate  quotas  established  under  Annex  I-A  to  the  Association 
Agreement shall be suspended and the products covered by those quotas shall 
be admitted for importation into the Union from Ukraine without any customs 
duties. 

2. 

The application of Chapter  V  and Article 24 of Regulation  (EU) 2015/478  shall be 
temporarily suspended with regard to imports originating in Ukraine. 

Article 2 
Conditions for entitlement to the preferential arrangements 

The  preferential  arrangements  provided  in  Article  1(1)  shall  be  subject  to  the  following 
conditions: 

(a) 

(b) 

(c) 

1. 

2. 

compliance with the rules of origin of products and the procedures related thereto as 
provided for in the Association Agreement; 

Ukraine’s abstention from introducing new duties or charges having equivalent effect 
and  new  quantitative  restrictions  or  measures  having  equivalent  effect  for  imports 
originating in the Union, from increasing existing levels of duties or charges, or from 
introducing any other restrictions on trade with the Union, including discriminatory 
internal administrative measures, unless clearly justified in the war context; and 

Ukraine's respect for democratic principles, human rights and fundamental freedoms 
and  respect  for  the  principle  of  the  rule  of  law  as  well  as  continued  and  sustained 
efforts with regard to the fight against corruption, and illegal activities provided for 
in Articles 2, 3 and 22 of the Association Agreement. 

Article 3 
Temporary suspension 

Where the Commission finds that there is sufficient evidence of Ukraine’s failure to 
comply with the conditions set out in Article 2, it may, by means of an implementing 
act,  suspend  in  whole  or  in  part  the  preferential  arrangements  provided  for  in 
Article 1(1).  That  implementing  act  shall  be  adopted  in  accordance  with  the 
examination procedure referred to in Article 5(3). 

Where  a  Member  State  requests  that  the  Commission  suspends  any  of  the 
preferential  arrangements  on  the  basis  of  Ukraine’s  failure  to  comply  with  the 
conditions  set  out  in  Article 2,  point  (b),  the  Commission  shall  provide  a  reasoned 
opinion within four months of the request on whether the claim of Ukraine’s failure 

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to  comply  is  substantiated.  If  the  Commission  concludes  that  the  claim  is 
substantiated, it shall initiate the procedure referred to in paragraph 1 of this Article. 

Article 4 
Safeguard measures 

If  a  product  covered  by  Article  1(1)  originating  in  Ukraine  is  imported  under 
conditions which adversely affect the Union market or the market of one or several 
Member States for like or directly competing products, the Commission may impose 
any  measure  which  is  necessary  by  means  of  an  implementing  act.  That 
implementing  act  shall  be  adopted  in  accordance  with  the  examination  procedure 
referred to in Article 5(3). 

These measures may be imposed for as long as necessary to counteract the adverse 
effects on the Union market or the market of one or several Member States for like or 
directly competing products. 

The  Commission  shall  regularly  monitor  the  impact  of  this  Regulation,  taking  into 
account  the  information  on  exports,  imports,  prices  on  the  Union  market  or  the 
market  of  one  or  several  Member  States  and  Union  production  of  the  products 
subject to the trade-liberalisation measures under Article 1(1), point (b). 

The  Commission  shall  inform  the  Member  States  of  the  results  of  the  regular 
monitoring every two months, starting from the entry into force of this Regulation. 

The Commission shall carry out an assessment of the situation of the Union market 
or  the  market  of  one  or  several  Member  States  for  like  or  directly  competing 
products to impose measures in accordance with paragraph 1. That assessment shall 
be launched: 

(a) 

following  a  duly  substantiated  request  from  a  Member  State  including 
sufficient  prima  facie  evidence  reasonably  available  to  that  Member  State 
pursuant to paragraph 4 of imports adversely affecting the market referred to in 
paragraph 1, or 

(b)  on its own initiative, after it has become apparent to the Commission that there 
is sufficient prima facie evidence of imports adversely affecting the market that 
is referred to in paragraph 1. 

The assessment referred to  in  the first  subparagraph shall be concluded within  four 
months of its launch. 

In  carrying  out  the  assessment  pursuant  to  paragraph  3,  the  Commission  shall  take 
into  consideration  all  relevant  market  developments,  including  the  impact  of  the 
imports  concerned  on  the  situation  of  the  Union  market  or  the  market  of  one  or 
several Member States for like or directly competing products. That assessment shall 
include factors such as: 

1. 

2. 

3. 

4. 

(a) 

(b) 

the  rate  and  amount  of  the  increase  in  imports  from  Ukraine  of  the  product 
concerned in absolute and relative terms, 

the effect of the imports concerned on production and prices in the Union or in 
one  or  several  Member  States,  whilst 
the 
development of imports from other sources. 

into  consideration 

taking 

This  list  is  not  exhaustive  and  other  relevant  factors  may  also  be  taken  into 
consideration. 

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5. 

6. 

7. 

In critical circumstances where delay would cause damage that would be difficult to 
repair,  the  Commission  may  provisionally  impose  any  measure  which  is  necessary 
by means of an implementing act. Such measures may only be imposed upon a duly 
substantiated request from a Member State pursuant to paragraph 3(a) of this Article 
and  shall  be  adopted  within  21  days  after  the  request  has  been  received.  The 
implementing  act  shall  be  adopted  in  accordance  with  the  advisory  procedure 
referred to in Article 5(4). The duration of a provisional safeguard measure shall not 
exceed 120 days. 

Where,  as  a  result  of  the  assessment  referred  to  in  paragraph  3,  the  Commission 
considers that the Union market or the market of one or several Member States for 
like  or  directly  competing  products  has  been  adversely  affected  and  intends  to 
impose a definitive measure pursuant to paragraph 1, it shall publish a notice in the 
Official  Journal  of  the  European  Union  announcing  the  introduction  of  such 
measures. The notice shall provide a summary of the main results of the assessment 
and  specify  the  period  within  which  interested  parties  may  submit  their  views  in 
writing.  Such  period  shall  not  exceed  10  days  from  the  date  of  publication  of  the 
notice. 

If,  during  the  period  6  June  to  31  December  2024,  cumulative  import  volumes  of 
either  eggs,  poultry  or  sugar  since  1  January  2024  reach  the  respective  arithmetic 
mean of import volumes recorded in 2022 and 2023, the Commission shall, within 21 
days and after informing the Committee on Safeguards established by Article 3(1) of 
Regulation (EU) 2015/478: 

(a) 

(b) 

reintroduce  for  that  product  the  corresponding  tariff-rate  quota  suspended  by 
Article 1(1), point b, until 31 December 2024; and 

introduce from 1 January 2025 either a tariff-rate quota equal to five twelfths 
of  that  arithmetic  mean  or  the  corresponding  tariff-rate  quota  suspended  by 
Article 1(1), point b, whichever is higher. 

If, during the period 1 January to 5 June 2025, cumulative import volumes of either 
eggs, poultry or sugar for the period since 1 January 2025 reach five twelfths of the 
respective  arithmetic  mean  of  import  volumes  recorded  2022  and  2023,the 
Commission shall, within 21 days and after informing the Committee on Safeguards, 
reintroduce for that product the corresponding tariff-rate quota suspended by Article 
1(1), point b.  

For  the  purposes  of  this  paragraph,  the  terms  eggs,  poultry  and  sugar  refer  to  all 
products  covered  by  the  tariff-rate  quotas  in  the  Appendix  to  Annex  I-A  of  the 
Association  Agreement  for,  respectively,  eggs  and  albumins,  poultry  meat  and 
poultry meat preparations, and sugars, and the arithmetic mean shall be calculated by 
dividing the sum of import volumes in 2022 and 2023 by two. 

8. 

If  the  Commission  imposes  a  measure  pursuant  to  paragraph  1,  5,  or  7  which 
reintroduces  a  tariff-rate  quota  suspended  by  Article  1(1),  point  b,  the  quantity 
imported  during  the  calendar  year  the  Commission  imposes  that  measure  shall  be 
taken into account in the management of that tariff rate quota. 

Article 5 
Committee procedure 

1. 

The  Commission  shall  be  assisted  by  the  Customs  Code  Committee  established  by 
Article 285(1) of Regulation (EU) No  952/2013  of the European Parliament  and of 

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the Council7 with regard to Article 3(1) of this Regulation. That Committee shall be a 
committee within the meaning of Regulation (EU) No 182/2011. 

The  Commission  shall  be  assisted  by  the  Committee  on  Safeguards  established  by 
Article 3(1)  of  Regulation  (EU)  2015/478  with  regard  to  Article  4(1)  of  this 
Regulation. That Committee shall be a committee within the meaning of Regulation 
(EU) No 182/2011. 

Where  reference  is  made  to  this  paragraph,  Article  5  of  Regulation  (EU)  No 
182/2011 shall apply. 

Where  reference  is  made  to  this  paragraph,  Article  4  of  Regulation  (EU)  No 
182/2011 shall apply. 

2. 

3. 

4. 

Article 6 
Assessment of the implementation of the trade-liberalising measures 

The Commission’s annual report on the implementation of the Deep and Comprehensive Free 
Trade  Area  shall  include  a  detailed  assessment  of  the  implementation  of  the  trade-
liberalisation  measures  provided  for  in  this  Regulation  and  shall  include,  insofar  as 
appropriate,  an  assessment  of  the  social  impact  of  those  measures  in  Ukraine  and  in  the 
Union.  Information  on  imports  of  products  under  Article 1(1),  point  (b),  shall  be  made 
available via the website of the Commission and shall be updated on a monthly basis. 

Article 7 
Entry into force and application 

This Regulation shall enter into force on 6 June 2024. 

This Regulation shall apply until 5 June 2025. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

7 

Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying 
down the Union Customs Code (OJ L 269, 10.10.2013, p. 1). 

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LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS HAVING A 
BUDGETARY IMPACT EXCLUSIVELY LIMITED TO THE REVENUE SIDE 

1. 

NAME OF THE PROPOSAL: 

Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  on 
temporary  trade  liberalisation  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. 

2. 

BUDGET LINES: 

Chapter 12, Article 120 

Amount budgeted for the year 2024: 24 620 400 000 € 

3. 

FINANCIAL IMPACT  

 

Proposal has no financial implications 

Proposal has no financial impact on expenditure but has a financial impact on 

X 
revenue – the effect is as follows: 

Budget line 

Revenue  

Period: part of 2024 - part of 
2025* 

(EUR million to one decimal 
place) 

Article 120 Chapter 128 

Impact on own 
resources 

33.4 

Total  

* One-year period since entry into force of the regulation 

The  calculations  are  based  on  2021  import  volumes  of  products  covered  by  the 
proposed  Regulation  in  excess  of  the  annual  duty-free  quota  (i.e.  40  tariff  rate 
quotas). 

Based on the above calculations the loss  of traditional own resources revenue from 
the proposed Regulation is estimated at EUR 44.5 million (gross amount, including 
collection costs) x 0,75 = EUR 33.4 million for the period in question. 

8 

Regarding  traditional  own  resources  (agricultural  duties,  sugar  levies,  customs  duties)  the  amounts 
indicated must be net amounts, i.e. gross amounts after deduction of 25 % of collection costs. 

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4. 

ANTI-FRAUD MEASURES 

In order to  prevent fraud, the  entitlement to  the trade measures  established by the proposed 
Regulation  should  be  conditional  upon  Ukraine  having  complied  with  all  the  relevant 
conditions  for  obtaining  benefits  under  the  Association  Agreement,  including  the  rules  of 
origin  of  products  concerned  and  the  procedures  related  thereto,  as  well  as  Ukraine's 
involvement  in  close  administrative  cooperation  with  the  Union,  as  provided  for  by  the 
Association Agreement. 

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