Ukraine-Türkiye Free Trade Agreement approved: New opportunities

Ukraine approves Free Trade Agreement with Türkiye, slashing import duties on industrial and agricultural products, boosting bilateral trade prospects

On May 7, the Ukrainian Cabinet of Ministers gave the green light to a draft law on the ratification of a Free Trade Agreement between Ukraine and Türkiye.

In particular, the agreement provides for the elimination of import duties on approximately 93.4% of industrial products and 7.6% of agricultural products from Türkiye, the Ukrainian Ministry of Economy said.

After a transition period of 3-7 years, Türkiye will phase out import duties on 1.5% of industrial goods and 28.5% of agricultural goods.

Ukraine will also cancel import duties on around 56% of industrial goods and 11.5% of agricultural goods.

Additionally, following transition periods ranging from 2 to 5 years for industrial goods and 2 to 10 years for agricultural goods, Ukraine will lift import duties on 43.2% of industrial goods and 53.7% of agricultural goods.

Unlocking new potentials with Türkiye

Ukrainian Economy Minister Yuliya Sviridenko emphasized that the free trade agreement between Ukraine and Türkiye will open new avenues for customs-free or partially customs-free trade between the two countries.

Sviridenko also underlined the agreement’s potential to facilitate logistics, which is vital for Türkiye’s ambitions, and to encourage mutual investments, especially in conflict situations.

“This agreement will also contribute to attracting investment to Ukraine during the war. We hope that the deputies will support the approval of the draft law and the completion of the process of trade liberalization between Ukraine and the Republic of Türkiye,” she added.

The Free Trade Agreement was signed on February 3, 2022 by Ukrainian Prime Minister Denys Shmyhal and former Turkish Trade Minister Mehmet Mus.

Last January, Trade Minister Omer Bolat pointed out that the Türkiye-Ukraine Free Trade Agreement would become effective and stated that this agreement was of great importance.

Source: Newsroom