The European Commission has concluded talks with Ukraine to update the EU-Ukraine Deep and Comprehensive Free Trade Area (DCFTA). This new agreement, reached in principle, marks a

major step toward a stable, long-term trade relationship that supports Ukraine’s path to EU membership. It also takes into account concerns from EU Member States and farmers, particularly around sensitive agricultural products.

The updated deal is designed to further integrate Ukraine into the EU’s Single Market, reflecting the EU’s ongoing commitment to Ukraine in the face of Russia’s continued aggression. Once formally adopted, the revised DCFTA will strengthen economic ties and provide long-term certainty for both sides.

Ursula von der Leyen, President of the European Commission, said: “With this modernised agreement, we are securing trade flows from Ukraine to Europe and global markets. And we are also building bridges of resilience and economic solidarity in the face of Russia's unjustified war of aggression. At the same time, we continue to safeguard the interests of our farmers. Ukraine's place is in the family. We remain committed to a path of mutual growth and stability, leading to its full integration in our Union.”

Key elements of the modernised DCFTA

Level Playing Field:
Ukraine’s increased access to the EU market will be linked to its gradual alignment with EU standards on areas such as animal welfare, pesticide use, and veterinary practices. Ukraine will report annually on its progress. This aligns with its EU accession commitments.

Safeguard Mechanism:
Both the EU and Ukraine will have the right to activate protective measures if imports threaten to disrupt local markets. In the EU, this can be triggered at the level of individual Member States or regions.

Balanced Trade Expansion:
The agreement carefully balances support for Ukraine’s exports with protections for sensitive EU sectors. For products like sugar, poultry, eggs, wheat, maize, and honey, only modest increases in market access are allowed. Other goods will see more liberalised access where markets are complementary, while some non-sensitive products will enjoy full liberalisation.

Additionally, the EU and Ukraine agreed to explore ways to help Ukrainian exporters regain access to traditional third-country markets. The agreement will be reviewed over time based on Ukraine’s economic progress and EU integration efforts.

What comes next?

Both parties will now finalise the technical details. EU Member States and the European Parliament will soon be briefed. After legal review, the EU will propose a formal endorsement through the Council, and the updated agreement will be officially adopted by the EU-Ukraine Association Committee.

Background

The original EU-Ukraine Association Agreement, including the DCFTA, was signed in 2014, removing most tariffs on industrial goods. Since the start of Russia’s war on Ukraine, the EU has introduced temporary trade measures to support Ukraine, including Autonomous Trade Measures (ATMs) and the Solidarity Lanes initiative. These have provided Ukraine with wide-reaching access to EU markets. With the new agreement, both sides aim to move from temporary aid to a long-term, reciprocal trade relationship under the renewed DCFTA. Photo by Andrew Bossi from Laurel, MD, USA, Wikimedia commons.