On April 29, the Government approved the draft law on the ratification of the Comprehensive Economic Partnership Agreement between the Government of Ukraine and the Government of the United Arab Emirates (UAE). Today's decision marks another step in Ukraine's internal procedures for the entry into force of this Agreement. The next step is to send the draft law to the Verkhovna Rada of Ukraine for ratification.
The Agreement provides for the establishment of a free trade regime between Ukraine and the UAE by liberalizing access to goods and services markets for both countries. Ukrainian goods will have full liberalization of access to the UAE market.
"The Comprehensive Economic Partnership Agreement between the Government of Ukraine and the Government of the UAE improves opportunities for Ukrainian businesses on the global market, as the UAE is an important economic, trade, and financial hub in the Middle East. The implementation of the Agreement, which covers nearly all product categories of bilateral trade, will contribute to the growth of production and exports of Ukrainian goods by reducing tariff barriers in trade between the two countries. We hope for the support of MPs for the approval of this draft law," said the First Deputy Prime Minister of Ukraine - Minister of Economy of Ukraine, Yulia Svyrydenko.
A growth in Ukrainian exports is expected in key sectors such as metallurgy, food industry, including flour milling and oil production. An increase in the export of metals and vegetable oil is also forecasted.
In addition, the UAE has lifted the 49% foreign capital share limit for Ukraine, allowing entrepreneurs to register companies with foreign capital up to 70%, and in certain sectors, gradually up to 100% (including in commercial services, construction, education, healthcare, and accounting). Meanwhile, in free economic zones, Ukrainian companies will be able to own businesses 100%, which is an important step for the development of Ukrainian businesses in this region.
The Agreement opens up new opportunities for digital trade: tariffs on digital and electronic data transmission, including electronic content, have been eliminated. It also establishes commitments regarding digital payments, personal data protection, and the creation of transparent rules for businesses developing the digital economy and cross-border trade.
This Agreement does not apply to territories that are an integral part of Ukraine's territory but remain under foreign occupation until Ukraine restores full and effective control over them.
The draft law will be sent for ratification by the Verkhovna Rada of Ukraine.
The Agreement will enter into force 60 days after the date of receipt of the last written diplomatic note, in which the parties notify each other of the completion of the internal procedures required for the entry into force of the Agreement.
