Business is waiting for the ratification of the Free Trade Agreement between Ukraine and the Republic of Turkey

09/ 05/ 2024

On May 7, the Cabinet of Ministers approved a draft law on ratification of the Free Trade Agreement between Ukraine and the Republic of Turkey. The next step is to adopt the draft law on ratification of the Agreement. The EBA business community has been waiting for this Agreement to enter into force for almost 10 years, so we hope for the signing of all documents as soon as possible, as this decision will help businesses open up new opportunities for duty-free or partially duty-free trade between the countries. Thus, the Agreement provides, in particular, for the abolition of import duties by Turkey for about 93.4% of industrial goods and 7.6% of agricultural goods. After the expiration of the transition periods of 3-7 years, Turkey will cancel 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 expiration 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 provisions of the Agreement cover trade in goods and services, application of the Pan-Euro-Med 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. After ratification by the Parliaments of both countries, the Agreement will enter into force, however, 2 months after the latter party receives confirmation of the completion of domestic procedures.

The EBA business community has been waiting for this Agreement to enter into force for almost 10 years, so we hope for the signing of all documents as soon as possible, as this decision will help businesses open up new opportunities for duty-free or partially duty-free trade between the countries.

Thus, the Agreement provides, in particular, for the abolition of import duties by Turkey for about 93.4% of industrial goods and 7.6% of agricultural goods. After the expiration of the transition periods of 3-7 years, Turkey will cancel 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 expiration 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 provisions of the Agreement cover trade in goods and services, application of the Pan-Euro-Med 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.

After ratification by the Parliaments of both countries, the Agreement will enter into force, however, 2 months after the latter party receives confirmation of the completion of domestic procedures.