The European Commission has officially confirmed its decision to end the so-called “trade visa-free regime” with Ukraine
This means that, in the near future, the universal trade preferences that facilitated Ukrainian goods' access to the European Union markets will disappear from the political agenda. Instead, the Ukrainian side and European institutions plan to establish a new, more structured and legally anchored system of trade liberalization, which will serve as the foundation for bilateral trade relations moving forward. As explained by the European Commission's spokesperson, Olof Gyll at a briefing held on April 30 in Brussels, the reliance on autonomous trade measures—which previously eliminated a significant portion of customs barriers for Ukrainian exports—will soon come to an end. Instead, all conditions of future trade rules, including preferences and market access, will be codified in a new, deep, and comprehensive free trade agreement (DCFTA), the signing of which is already planned. Gyll emphasized that the transition period aims to ensure a seamless and controlled shift to the new set of arrangements. This will help avoid any disruptions or misunderstandings in bilateral trade relations. The new regime envisions not merely the abolition of reduced tariffs but a full integration of Ukrainian trade conditions within the framework of an agreement that meets EU standards and considers all aspects of trade cooperation. When asked about specific timelines for implementing the new approach, Gyll noted that the exact date for beginning the process has yet to be determined and depends on the completion of internal procedures and joint work. “We are working to ensure this transition occurs in the near future and is as structured and transparent as possible,” he added. He also highlighted that the European Union's policy goal is to facilitate a balanced transition that prevents any regression to previous trade regimes or the imposition of restrictions in bilateral relations. Preconditions for such a step arose earlier in April when the Ukrainian government and EU institutions worked to avoid returning to the pre-2022 conditions—when trade barriers and restrictions were significantly more stringent. During that time, Ukrainian Prime Minister Denys Shmyhal called on the EU to extend the "trade visa-free regime" at least until the end of 2025, which was practically agreed upon at the EU level. Following lengthy and intensive negotiations, on May 13, 2024, the Council of the European Union adopted a decision to extend the trade preferences with Ukraine for another year—until June 5, 2025. This decision provides the country with time to prepare for the full integration of trade conditions within the framework of the upcoming Comprehensive Free Trade Agreement, which will become the new basis for cooperation. For a more detailed analysis of the future trade policy and the changes resulting from the end of the "autonomous" preferences, we invite you to read the analytical article by lawyer and expert Yuriy Panchenko titled "A New Era of Trade with the EU: What Will Replace ‘Autonomous Preferences’." The article explains what changes Ukrainian businesses can expect and what advantages the country might gain through deeper integration into European trade rules. Overall, the process of transforming Ukraine's trade relations with the European Union is gaining momentum. It is expected to be another step toward creating more cohesive, predictable, and stable conditions for Ukrainian exports—important for the country's economic stability and development. However, time will tell how well the new cooperation framework will meet the expectations of business and the state, and what challenges may test both sides in the future.