Strengthening trade relations with Ukraine and MERCOSUR could be beneficial for Europe in the event of a trade war with the US

Strengthening trade relations with Ukraine and Mercosur countries could prove beneficial for Europe in the event of a trade war with the United States, EU Agriculture Commissioner Christoph Hansen told Euronews.

European farmers fear that an ambitious trade deal with the EU could undermine sensitive agricultural sectors, but the Luxembourg commissioner said the strategic steps could reduce Europe’s dependence on US imports, especially protein crops, which the bloc still imports in large quantities.

“We need to do our homework to make our farming community more competitive,” Hansen said, suggesting that trade deals could play a key role in achieving this.

Ukraine’s integration, in particular, offers geopolitical advantages, as further increases in agricultural production could strengthen Europe’s position as a global player in the sector.

“It is a combination of challenges and opportunities. It’s like a wedding — there are always difficulties and you have to make concessions, but you also get benefits,” Hansen said.

The European Commission has no plans to continue trade with Ukraine on the current terms after June 5. Instead, EU Agriculture Commissioner Christoph Hansen announced an agreement under the trade agreement (DCFTA, Ukrainian for Deep and Comprehensive Free Trade Area), which is part of the 2016 EU-Ukraine Association Agreement.

US President Donald Trump, during a cabinet meeting at the White House, expressed his intention to impose a 25% tariff on goods from the European Union.

Tags: Ukraine, EU