Proposed new EU measures

On 27 April 2022, in view of the ongoing situation in Ukraine, the EU Commission put forward a Proposal for a Regulation which would introduce the following temporary and exceptional trade-liberalising measures:

• the full removal of import duties (“preferential customs duties”) on the import of certain industrial products originating from Ukraine;
• the suspension of the Entry Price System to fruit and vegetables;
• the suspension of zero-tariff quotas and the full removal of import duties;
• a temporary non-collection of anti-dumping duties on imports originating in Ukraine; and
• a temporary suspension of the application of the common rules for imports (i.e. safeguard) on imports originating in Ukraine.

The continuation of these measures will be subject to certain conditions being met going forward.

It is currently anticipated that the Regulation will apply for one year after its entry into force (with the Regulation entering into force on the day following its publication in the Official Journal of the European Union).

The purpose behind the Proposal is to facilitate and deepen trade relations between Ukraine and the EU by building on the Association Agreement already in place between the EU and Ukraine.

Due to the urgency of the situation, the EU Commission did not produce an impact assessment in respect of the Proposal. The EU Commission have however noted that the regulatory burden of companies should not increase as a result of these measures.

Proposed new UK measures

Similar to the measures proposed by the EU Commission, the UK Government announced on 25 April 2022 that the UK would cut tariffs on all goods from Ukraine to zero and remove all quotas under the UK/Ukraine FTA. The purpose of this measure is to provide economic support to Ukraine and will include the removal of tariffs on goods such as barley, honey, tinned tomatoes and poultry.

The UK Government also announced a new export ban on certain products and technology to prevent Russia buying such goods from the UK.

This post was authored by Yves Melin, Philippe Heeren, Emma McGrory and Anna Golouchko.