EBA welcomes the entry into force of the new Trade Facilitation Agreement between Ukraine and the EU

30/ 10/ 2025

The European Business Association welcomes the adoption of the new Trade Facilitation Agreement between Ukraine and the European Union, which entered into force on 29 October 2025 and marks a new stage in trade relations between the two sides. It is important to note that the new Agreement is not an extension of the EU’s temporary unilateral trade preferences, nor does it restore the pre-war trade restrictions. Instead, it establishes a new, long-term, and stable framework for Ukrainian exporters, creating a predictable environment for trade and investment. What are the key changes? 1. Establishing permanent and predictable trade conditions The Agreement provides for the abolition or reduction of import duties and the increase of tariff quotas for Ukrainian goods. In this way, the EU’s exceptional support for Ukraine during wartime is being transformed into a predictable, mutually beneficial trade relationship, as the decision now has a bilateral nature. The next review of trade conditions is expected in 2028. 2. Setting tariff quotas until the end of 2025 The Agreement foresees an increase in duty-free quotas for Ukrainian agricultural exports, including grain crops. Notably, grains and flour now have separate quotas. This opens up broader opportunities for Ukrainian exporters to access the EU market, enhances competitiveness, and promotes export growth. At the same time, quotas for the dairy sector have been increased, covering the export of butter, skimmed milk powder, and condensed milk. This will allow Ukrainian producers not only to strengthen their positions in the European market but also to continue aligning with EU standards. It is worth recalling that the trade liberalisation between Ukraine and the EU following Russia’s full-scale invasion helped the Ukrainian dairy industry survive and continue operations during the most challenging times. Next steps In the near term, the key task will be the effective implementation of the Agreement’s provisions and the harmonisation of Ukrainian legislation with EU norms. The European Business Association expresses its gratitude to the Government of Ukraine for its efforts and open communication with the business community. The EBA will continue to cooperate with state authorities and European partners to ensure that Ukrainian business can fully benefit from the new opportunities.

It is important to note that the new Agreement is not an extension of the EU’s temporary unilateral trade preferences, nor does it restore the pre-war trade restrictions. Instead, it establishes a new, long-term, and stable framework for Ukrainian exporters, creating a predictable environment for trade and investment.

What are the key changes?

1. Establishing permanent and predictable trade conditions
The Agreement provides for the abolition or reduction of import duties and the increase of tariff quotas for Ukrainian goods. In this way, the EU’s exceptional support for Ukraine during wartime is being transformed into a predictable, mutually beneficial trade relationship, as the decision now has a bilateral nature. The next review of trade conditions is expected in 2028.

2. Setting tariff quotas until the end of 2025
The Agreement foresees an increase in duty-free quotas for Ukrainian agricultural exports, including grain crops. Notably, grains and flour now have separate quotas.

This opens up broader opportunities for Ukrainian exporters to access the EU market, enhances competitiveness, and promotes export growth.

At the same time, quotas for the dairy sector have been increased, covering the export of butter, skimmed milk powder, and condensed milk. This will allow Ukrainian producers not only to strengthen their positions in the European market but also to continue aligning with EU standards.

It is worth recalling that the trade liberalisation between Ukraine and the EU following Russia’s full-scale invasion helped the Ukrainian dairy industry survive and continue operations during the most challenging times.

Next steps

In the near term, the key task will be the effective implementation of the Agreement’s provisions and the harmonisation of Ukrainian legislation with EU norms.

The European Business Association expresses its gratitude to the Government of Ukraine for its efforts and open communication with the business community. The EBA will continue to cooperate with state authorities and European partners to ensure that Ukrainian business can fully benefit from the new opportunities.