This includes the abolition of all tariffs and quotas in bilateral trade, aiming to boost Ukrainian exports to the UK.
Key Points
Ratification Details:
- The Verkhovna Rada ratified draft law No. 0268, which amends the Agreement on political cooperation, free trade, and strategic partnership with Great Britain. The amendments provide for the abolition of all import duties and tariff quotas in bilateral trade until 2029.
Agreement Timeline:
- The agreement is valid for a 5-year period, from March 31, 2024, to March 31, 2029.
- Special provisions for eggs and poultry meat products will apply until April 1, 2026, after which these items will also be fully liberalized.
Trade Benefits:
- The agreement is expected to significantly boost trade between Ukraine and the UK, particularly in sectors such as flour, grain, dairy products, poultry, tomato paste, honey, corn, wheat, juices, and sugar.
- The liberalization aims to revive and enhance the export potential of Ukrainian producers in the UK market.
Protective Mechanisms:
- The agreement includes protective mechanisms to ensure fair trade practices and provides the possibility of extending the agreement beyond 2029 by mutual consent.
Background
Previous Agreement:
- Ukraine and Great Britain originally signed the Agreement on political cooperation, free trade, and strategic partnership on February 8, 2024, as part of ongoing efforts to strengthen bilateral relations post-Brexit.
Importance of the UK Market:
- The UK has been a significant trading partner for Ukraine, especially for agricultural products. The extension of preferential trade terms ensures that Ukrainian goods continue to have competitive access to the British market.
Implications
Economic Impact:
- The ratification is expected to lead to increased exports from Ukraine to the UK, providing a much-needed boost to the Ukrainian economy, particularly in the agricultural sector.
- The removal of tariffs and quotas will make Ukrainian goods more competitive in the UK market, potentially increasing market share for Ukrainian producers.
Future Cooperation:
- The agreement sets a precedent for continued close economic cooperation between Ukraine and the UK, with the potential for further extensions or expansions of trade agreements in the future.
Strategic Partnership:
- The ratification reinforces the strategic partnership between the two countries, aligning their trade policies and economic strategies over the coming years.
Conclusion
The extension of preferential export terms under the ratified agreement between Ukraine and Great Britain represents a significant step in strengthening economic ties between the two countries. By abolishing tariffs and quotas, the agreement will enhance the competitiveness of Ukrainian goods in the UK market, driving economic growth and reinforcing the strategic partnership.
