EU autonomous trade measures: Positive, but minor impact
The free trade agreement (DCFTA) between Ukraine and the EU entails a wide, but not complete trade liberalisation.
Several Ukrainian agri-food products face EU tariff rate quotas (TRQs) and for a number of industrial products the EU’s import tariffs will only be abolished in some years’ time.
Against the background, the EU adopted a set of temporary autonomous trade measures (ATMs) in favour of Ukraine, which came into effect in October 2017. On the one hand, eight TRQs for agri-food products were increased. Due to these measures, Ukrainian exporters will be able to fetch higher prices, and in some cases even increase the volume of exports to the EU. The main impact will be on
barley, whose TRQ was increased by 130%.
On the other hand, the import duties for 22 tariff lines of industrial products were eliminated earlier than foreseen under the DCFTA. The main beneficiaries will be producers of video and TV equipment.
The combined impact of these two sets of measures is positive, but relatively minor. Exports to EU will grow by USD 79.3 m or 0.6%. Part of this increase is due to a reorientation of exports. Consequently, the increase of total exports will be slighter and amount to USD 23.9 m or 0.07%.
