This move comes after the Turkish President Recep Tayyip Erdogan approved the agreement, which was published in the Official Gazette of Turkey on August 2, 2024 .
Key Details of the Agreement
Signing and Ratification:
- The Free Trade Agreement was initially signed on February 3, 2022.
- Turkish President Recep Tayyip Erdogan approved the agreement with annexes on August 1, 2024.
- The ratification was officially announced in the Official Gazette of Turkey on August 2, 2024 .
Trade Expectations:
- In 2023, the bilateral trade volume between Turkey and Ukraine was $7.3 billion.
- The FTA is expected to boost this volume to $10 billion in a short period, according to Omer Bolat, Turkey's Minister of Trade .
Scope of the Agreement:
- Turkey will cancel import duties on:
- 93.4% of industrial goods and 7.6% of agricultural goods immediately.
- Additional duties will be removed for 1.5% of industrial goods and 28.5% of agricultural goods after transition periods of 3-7 years .
- Ukraine will cancel import duties on:
- 56% of industrial goods and 11.5% of agricultural goods immediately.
- Further duties will be removed for 43.2% of industrial goods and 53.7% of agricultural goods after transition periods of 2-5 years for industrial goods and 2-10 years for agricultural goods .
- Turkey will cancel import duties on:
Economic Impact
Strengthening Economic Ties:
- The agreement aims to deepen economic cooperation between Turkey and Ukraine, leveraging shared interests to boost mutual trade and investment .
- The FTA is expected to facilitate a more efficient and competitive trade environment, benefiting businesses and consumers in both countries.
Benefits for Industries:
- Industrial Goods: Significant reduction in tariffs, opening up markets for machinery, electronics, textiles, and automotive parts .
- Agricultural Goods: Enhanced access for agricultural products, promoting agricultural trade and collaboration .
Strategic Significance
Regional Influence:
- The FTA strengthens Turkey's role as a key trade partner for Ukraine, contributing to regional stability and economic integration .
- By aligning more closely with Ukraine, Turkey positions itself as a strategic player in Eastern European trade dynamics.
Economic Growth:
- The agreement is anticipated to stimulate economic growth by creating new business opportunities, encouraging foreign direct investment, and enhancing supply chain efficiency .
Conclusion
The ratification of the Free Trade Agreement between Turkey and Ukraine marks a pivotal moment in their bilateral relations. By eliminating tariffs on a wide range of goods, the FTA promises to significantly boost trade volumes, foster economic collaboration, and enhance regional economic stability. As both nations look forward to increased trade activities, this agreement paves the way for a more prosperous and integrated economic partnership
