Financial Times: Poland will oppose renewal of EU free-trade deal with Ukraine

The Financial Times has learned that Poland will oppose the European Commission's proposal to extend Ukraine's preferential trade regime for another year, which may be announced as early as Tuesday, 16 January.

Source: European Pravda, citing Financial Times

Details: On 25 May 2024, the EU Council adopted a regulation extending the suspension of all customs duties, quotas and trade defence measures on Ukrainian exports to the EU for another year, until June 2024.

The EU Council is expected to propose to extend the suspension of tariffs and import quotas on Ukrainian products on 16 January to help keep Ukraine's economy afloat until June 2025.

The European Commission is expected to add a provision to the proposal that would allow it to quickly stop Ukrainian exports if they flood the market in some member states.

Despite the government change last year, Poland has not abandoned the protectionist policies of its Law and Justice predecessors. According to the FT, Warsaw wants to conclude an agreement with Kyiv on export licensing of products – similar to the one that Ukraine has agreed with Romania and Bulgaria.

"The bulk of the work is in the dialogue between the two capitals [Warsaw and Kyiv]," one EU diplomat told the Financial Times on condition of anonymity.

The publication, however, points out that Poland's position on the extension of trade benefits for Ukraine will not affect the outcome, as a majority vote makes this decision.

Earlier, Janusz Wojciechowski, Polish European Commissioner for Agriculture, warned of a new crisis that could be triggered by excessive agricultural imports from Ukraine to the EU. Wojciechowski threatened not to support the regulation on the extension of preferences if his proposals are not considered.

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