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- Negotiations and agreementsTrade policy
The Association Agreement, including a Deep and Comprehensive Free Trade Area (DCFTA) between the EU and Ukraine was negotiated between 2007 and 2011, and signed on 21 March and 27 June 2014.
The DCFTA has been provisionally applied since 1 January 2016. The Association Agreement formally entered into force on 1 September 2017 following ratification by all EU Member States.
The Association Agreement is the main tool for bringing Ukraine and the EU closer together: it promotes deeper political ties, stronger economic links and the respect for common values.
The EU granted Autonomous Trade Measures (ATMs) for Ukraine, topping up the concessions included in the Association Agreement/DCFTA for several industrial goods and agricultural products from October 2017 for a period of three years.
- The EU is Ukraine's largest trading partner, accounting for more than 40% of its trade in 2019. Ukraine is the 18th trading of the EU accounting for around 1,1% of EU's total trade. Total trade between EU and Ukraine reached €43,3 bn in 2019.
- Ukraine exports to the EU amounted to €19.1 bn in 2019. The main Ukraine exports are raw materials (iron, steel, mining products, agricultural products), chemical products and machinery. This is a considerably increase of 48,5% since 2016.
- The EU exports to Ukraine amounted to over €24.2 bn in 2019. The main EU exports to Ukraine include machinery and transport equipment, chemicals, and manufactured goods. EU exports to Ukraine have been subject to a similar impressive increase since 2016 of 48,8%.
- The number of Ukrainian companies exporting to the EU has increased at an impressive rate, from approximately 11,700 in 2015 to over 14,500 in 2019.
The EU and Ukraine
The AA/DCFTA aims to boost trade in goods and services between the EU and Ukraine by gradually cutting tariffs and bringing Ukraine's rules in line with the EU's in certain industrial sectors and agricultural products.
To better integrate with the EU market, Ukraine is harmonising many of its norms and standards in industrial and agricultural products. Ukraine is also aligning its legislation to the EU's in trade-related areas such as:
- Technical barriers to trade (TBT)
- Sanitary and phytosanitary (SPS)
- Customs and trade facilitation
- Protection of intellectual property rights
The EU has banned the import of goods originating in Crimea and Sevastopol, as well as investments and a number of directly related services there until at least 23 June 2020. This is in line with its policy of not recognising the Russian Federation's illegal annexation of Crimea and Sevastopol.
Export ban on unprocessed wood
The EU-Ukraine Association Agreement prohibits any form of export restrictions.
The EU considers therefore that keeping in place since 2005 a permanent ban on exports of sawn wood violates the terms of the agreement.
Committees and Dialogues
The EU and Ukraine meet regularly to discuss issues and best practices and oversee the proper functioning of the Agreement.
Trading with Ukraine
- Importing into the EU from Ukraine
- EU trade defence measures on imports from Ukraine
- Exporting from the EU to Ukraine
- Trade relations are part of the EU's overall political and economic relations with Ukraine
- Ukraine is a member of the World Trade Organization
In 2015, Ukraine introduced a 10-year export ban for all unprocessed wood, amending and supplementing a ban of 2005 on ten wood species of low commercial relevance. The EU raised the export ban with Ukraine at all levels and instances since 2015.
The final ruling of a dispute settlement panel set up under the EU-Ukraine Association Agreement found that the Ukrainian ban on the exports of all unprocessed wood is incompatible with the Association Agreement.
UPDATE: Ukraine wood export ban panel timeline under Covid-19 restrictions.