Opening of Free Trade With Turkish State

by Olha Povaliaieva
Friday, February 4, 2022
Opening of Free Trade With Turkish State

The cabinet of ministers of Ukraine agrees to the implementation of the free trade zone project with Turkey

At the meeting of the government, it became known that Ukraine was ready to conclude a new contract with Turkey. Work on this document began in 2010. However, the parties were unable to sign the agreement due to disagreements. The main "brake pedal" was the divergence of tariffs between countries.

The agreement was supposed to be signed this week. The official certification of the document, which had been pending for 12 years, took place on 3 February during the visit of Turkish president Recep Tayyip Erdogan.

Since both countries have defined mutually beneficial terms, Ukraine expects 2% growth per gross domestic product annually. As noted in the office of the Ukrainian president, the signed document expands the possibilities of trade between Ukraine and Turkey and activates the agreement on investment and production cooperation.

In 2021, the countries' trade turnover was over $7 billion. Ukraine exported goods worth $4.1 billion. At the same time, Ukrainian imports amounted to $3.2 billion. Exports from Ukraine consist of 80% metals and cereals.

In the new agreement framework, the parties hope to increase these figures. According to the document, Ukraine welcomes the work of Turkish investing-in-ukraine/starting-business-in-ukraine/build-an-enterprise/" rel="dofollow">enterprises on its territory. On the Turkish side, the sectors to which Ukrainians will have access in the trade market will be expanded.

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