Negotiations with the EU launched: key challenges and priorities for the agricultural sector

Ukraine has begun the practical phase of preparation for EU accession. In the agricultural sector, the industry must be prepared to operate under the rules of the single European market and meet 16 indicators. Ahead lie complex reforms and access to 440 million new consumers.

The Government plans to launch substantive discussions on the agricultural sector this fall. Participants in the expert discussion “European Integration in Progress: Agriculture and Rural Development” discussed the financial, environmental, and institutional changes necessary for the integration of Ukraine’s agribusiness sector into the EU.

Cluster 5 (“Resources and Agriculture”) is considered one of the most challenging in the negotiation process. Ukraine is a major global player, and European farmers fear direct competition. The agricultural core of the cluster consists of three sections, under which Ukraine must meet 16 benchmarks (indicators):

• Section 11, “Agriculture and Rural Development,” covering the rules of the EU’s Common Agricultural Policy (CAP) and direct support mechanisms;
• Section 12, “Food Safety, Veterinary and Phytosanitary Policy,” with strict “farm-to-table” control standards;
• Section 13, “Fisheries and Fishing.”

The first critical test for Ukraine will be a large-scale environmental modernization and the harmonization of pesticide use regulations with the requirements of the European Green Deal.

“The environmental reform of plant protection products will directly affect at least 10 million hectares of cultivated land—that is nearly 40% of all agricultural land in government-controlled territories. According to estimates by industry associations, this technological transition will cost the Ukrainian agribusiness sector about EUR 2 billion annually. At the same time, environmental modernization is a necessary condition for long-term access of Ukrainian products to the European market and will help improve safety for the environment and rural areas,” said Taras Vysotskyi, Deputy Minister of Economy, Environment, and Agriculture of Ukraine.

The next challenging area will be negotiations on subsidies. The EU spends about one-third of its total budget on supporting farmers. Ukraine’s inclusion in the current subsidy system will place a significant strain on the European budget. For this reason, one of the main topics of the negotiations will be transition periods and special support programs specifically for Ukraine’s small and medium-sized farmers.

At the same time, Ukraine needs to establish the infrastructure required to implement the EU’s Common Agricultural Policy. This includes a Paying Agency to audit and distribute European funds, as well as an integrated monitoring system based on the State Agrarian Register (SAR). To launch this system, a staff of 250–400 qualified specialists must be recruited. As required by the EU, this must be an exclusively state-run entity with permanent funding from the State Budget. In the context of the war, this poses a serious challenge for the budget.

As negotiations on the agricultural sector prepare to begin, the Government and relevant industry associations are building a strong evidence base and detailed economic analyses. Ukraine plans to defend its national interests in Brussels based on clear figures, an analysis of the impact of reforms on producers, and the strengthening of partnerships between Ukrainian and European industry associations. In the coming months, the Government will focus on advancing a number of legislative initiatives, particularly regarding plant protection products, animal welfare, feed safety, and organic production, all of which are harmonized with EU legislation.