Government supports ratification of the Free Trade Agreement between Ukraine and the Republic of Turkey

On 7 May, the Cabinet of Ministers of Ukraine approved a draft law on the ratification of the Free Trade Agreement between Ukraine and the Republic of Turkey. Today’s decision creates the basis for completing domestic procedures for the entry into force of the Agreement. The next step is to submit the draft law for ratification by the Verkhovna Rada of Ukraine.

The agreement creates additional opportunities for the development of trade relations through preferential conditions for access to the markets of goods and services of both countries, ensuring greater transparency in regulatory matters, reducing operating costs for businesses by removing barriers to trade and, ultimately, increasing the efficiency of national economies.

“The Free Trade Agreement between Ukraine and the Republic of Turkey will open up new opportunities for duty-free or partially duty-free trade between our countries, in particular, it will simplify logistics, which is an important condition for Ukrainian businesses during the war, and will help attract mutual investments. We hope for the support of MPs in approving the draft law and completing the process of trade liberalisation between Ukraine and the Republic of Turkey,” said Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine.

The agreement provides, inter alia, for the cancellation by Turkey of import duties for about 93.4% of industrial goods and 7.6% of agricultural goods. After the expiry of the transitional periods of 3–7 years, Turkey will abolish import duties for another 1.5% of industrial goods and 28.5% of agricultural goods.

Ukraine, for its part, will abolish import duties for about 56% of industrial goods and 11.5% of agricultural goods. After the expiry of the transitional periods (2-5 years for industrial goods, 2–10 years for agricultural goods), Ukraine will eliminate import duties for another 43.2% of industrial goods and 53.7% of agricultural goods.

In general, the Agreement covers trade in goods and services, application of the Pan-Euro-Mediterranean Convention to determine the origin of goods, intellectual property rights, application of sanitary and phytosanitary measures, elimination of technical barriers to trade, e-commerce, customs cooperation, commercial presence of enterprises, and application of safeguard measures.

The draft law will be submitted for ratification by the Verkhovna Rada of Ukraine. After ratification by the parliaments of both countries, the Agreement will enter into force 2 months after the last party receives confirmation of the completion of domestic procedures.

IC UAC according to the MEU