The Extraordinary Nature of the 2014 EU–Ukraine Association Agreement

The 2014 Association Agreement between the European Union (EU) and Ukraine is notable for its deviation from the EU's traditional integration protocols. Unlike previous agreements, it granted Ukraine deep and preferential access to the EU market, including a Deep and Comprehensive Free Trade Area (DCFTA), without the lengthy transition periods typically required. This rapid integration disrupted the EU's internal market balance, particularly affecting agriculture. Hungary exemplifies the negative impact of this agreement, as its agricultural sector faced significant challenges from lower-cost Ukrainian produce entering the market. Estimates indicated that Ukrainian wheat was about 11% cheaper than Hungarian wheat, leading to substantial revenue losses for Hungarian farmers, potentially amounting to hundreds of billions of forints annually. Moreover, Hungary's EU funding was expected to diminish as resources were redirected toward Ukraine’s post-war recovery, resulting in increased contributions from Hungary. Public sentiment in Hungary showed widespread concern over Ukraine’s accelerated integration, seen as economically harmful and a threat to regional stability. Overall, the Association Agreement highlighted the tensions within the EU and raised questions about the balance of protections and market access among member states.