EU Ends Ukraine’s “Trade Visa-Free” Regime: What Awaits Farmers After June 5

Starting June 5, 2025, Ukraine will lose its “trade visa-free” regime with the European Union, which allowed duty-free exports to EU countries. According to Oleksandra Avramenko, Head of the EU Integration Committee at UCAB, Ukrainian exporters will now be limited to just 7/12 of the previous annual quotas.

This means a significant cut in export volumes for key products. For example, wheat exports will drop from 6 million to 1 million tons, corn from 4.7 million to 650,000 tons, and sugar down to 20,000 tons. The rollback affects not only the temporary autonomous trade measures but reverts to the stricter trade terms of the 2014 Association Agreement, which imposes over 30 product quotas.

The situation is complicated by the fact that the European Commission is not yet ready to begin formal negotiations on updating Article 29 of the Association Agreement. This delay is tied to ongoing political processes in EU countries, particularly the upcoming elections in Poland. As a result, a transitional arrangement offering 7/12 of old quotas is being implemented.

Producers of value-added goods — such as flour, cereals, dairy products, and tomato paste — are expected to be hit the hardest. These products usually rely on leftover quota capacity after raw commodities like wheat and corn have filled the limits.

Poultry and egg exporters are also at risk. Logistical barriers continue to hinder exports to traditional markets in the Middle East and Southeast Asia. With reduced access to the EU market, many producers will be forced to scale down or shift focus.

The European Commission promises to revisit Article 29 negotiations after elections in key member states. Talks may begin this summer and last through autumn, with a potential new trade framework not expected to take effect until 2026 at the earliest.

A major condition for trade liberalization is compliance with EU production standards. Avramenko warns this poses serious challenges for Ukrainian businesses already operating under wartime constraints and logistical disruption.

EU officials are attempting to strike a balance between supporting Ukraine and protecting domestic agricultural sectors. The 7/12 quota model is seen as a compromise — softening the blow to Ukrainian exports while minimizing political fallout within the EU.

However, without renewed agreements, the situation may deteriorate rapidly. Unsold products will flood the domestic market, pushing prices down and reducing farmers’ incomes. The only way forward is to urgently restart negotiations and adapt to new realities.

Tags: Ukraine, corn, EU, sugar, flour, restrictions, eggs, UCAB