Ukraine and the UK Extend Duty-Free Trade for Five More Years, Aims to Boost Bilateral Trade

by Roman Cheplyk
Monday, February 12, 2024
Ukraine and the UK Extend Duty-Free Trade for Five More Years, Aims to Boost Bilateral Trade

On February 8, 2024, Ukraine and the United Kingdom took a significant step towards strengthening their trade relations

Yulia Svyridenko, the First Deputy Prime Minister - Minister of Economy of Ukraine, and Gregory William Hands, the Minister for Trade Policy of the UK's Department of Business and Trade and Minister for London Affairs, signed Agreement No. 3. This agreement, formalized through an exchange of letters, amends the Agreement on political cooperation, free trade, and strategic partnership between the two nations, specifically concerning obligations for trade liberalization.

This agreement marks a continuation of the full trade liberalization initiative initiated in 2022, which saw bilateral trade in goods surpass $1.4 billion, a 20% increase from the previous year. The new agreement ensures the abolition of all import duties and tariff quotas in bilateral trade, set to last until March 31, 2029, except for eggs and poultry meat products, whose liberalization extends until April 1, 2026.

The agreement includes provisions for a protective mechanism to maintain consistency with previous agreements, an option for extension by mutual consent, and clauses regarding its activation and duration. This extended period of trade liberalization is expected to energize trade between Ukraine and the UK, enabling Ukrainian producers to increase the export of traditionally supplied products such as flour, grains, dairy, poultry meat, tomato paste, honey, corn, wheat, juices, sugar, etc. It also offers Ukraine greater flexibility in planning export logistics and the potential to enhance the export of high-value-added goods.

The agreement will take effect following the completion of all necessary domestic procedures, promising a significant boost to the trade partnership between Ukraine and the United Kingdom.

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