Ukraine ratifies free trade agreement with Turkey

On July 14, Ukraine’s Parliament ratified the Free Trade Agreement between the Government of Ukraine and the Government of the Republic of Türkiye, completing the domestic procedures required for the agreement, signed on February 3, 2022, to enter into force.

Ukraine’s Deputy Minister of Economy and Trade Representative Taras Kachka said the agreement would create new opportunities for Ukrainian businesses, particularly in food processing. Currently, 77% of Ukraine’s exports to Türkiye consist of grains and sunflower oil, while the FTA removes tariffs on higher-value processed products, including food products, feed concentrates, and processed oilseed products.

The agreement also incorporates the updated Pan-Euro-Mediterranean (PEM) rules of origin, allowing Ukrainian manufacturers to use Turkish materials and components while maintaining preferential origin status for exports to the EU, further integrating Ukraine into European value chains.

However, Deputy Chairman of the Parliamentary Committee on Economic Development Dmytro Kysylevskyi warned that the agreement creates uneven trading conditions. While Ukraine will eliminate tariffs on most Turkish goods, Türkiye will retain relatively high import duties on several Ukrainian products, including 38.5% on honey, 58.5% on fruit juices, 135% on sugar, 180% on dairy products, and 225% on pork and beef.

According to Kysylevskyi, the agreement will deliver meaningful economic benefits only if Ukraine provides domestic manufacturers with a level of state support comparable to that available to Turkish producers.

Tags: Ukraine, Turkey