On May 7th, during a meeting of the Cabinet of Ministers of Ukraine, a bill regarding the ratification of the Free Trade Agreement between Ukraine and the Republic of Turkey was approved. Today's decision lays the groundwork for completing domestic procedures for the entry into force of this Agreement. The next step will be to submit the bill for ratification by the Verkhovna Rada of Ukraine.
The Agreement creates additional opportunities for the development of trade relations through preferential terms of access to the markets of goods and services of both countries, ensuring greater transparency in regulatory matters, reducing operational costs for businesses by removing trade barriers, and ultimately increasing the efficiency of the development of national economies.
"The Free Trade Agreement between Ukraine and the Republic of Turkey will open up new opportunities for duty-free or partially duty-free trade between our countries, simplifying logistics, which is crucial for Ukrainian businesses during times of war, and will also contribute to attracting mutual investments. We hope for the support of deputies in approving the bill and completing the process of trade liberalization between Ukraine and the Republic of Turkey," noted the First Deputy Prime Minister of Ukraine and Minister of Economy Yulia Svyrydenko.
The Agreement provides, among other things, for Turkey to abolish import duties for approximately 93.4% of industrial goods and 7.6% of agricultural goods. After the expiration of transitional periods of 3-7 years, Turkey will further abolish import duties for 1.5% of industrial goods and 28.5% of agricultural goods.
On its part, Ukraine will abolish import duties for approximately 56% of industrial goods and 11.5% of agricultural goods. After the expiration of transitional periods (2-5 years for industrial goods, 2-10 years for agricultural goods), Ukraine will further abolish import duties for 43.2% of industrial goods and 53.7% of agricultural goods.
Overall, the provisions of the Agreement cover trade in goods and services, the application of the Pan-Euro-Mediterranean Convention to determine the origin of goods, intellectual property rights, the application of sanitary and phytosanitary measures, the removal of technical barriers to trade, e-commerce, customs cooperation, commercial presence of enterprises, and the application of protective measures.
The bill will be submitted for ratification by the Verkhovna Rada of Ukraine. After ratification by the parliaments of the countries, the Agreement will enter into force two months after receiving confirmation of the completion of internal procedures by the last party.
