On July 14, the Verkhovna Rada adopted a law ratifying the Free Trade Agreement between Ukraine and Turkey. The Ukrainian parliament’s press service reported the decision.
Draft Law No. 0340 was submitted by the Cabinet of Ministers and aims to complete the domestic procedures required for the entry into force of the Free Trade Agreement between Ukraine and Turkey, which was signed on February 3, 2022, in Kyiv.
Deputy Prime Minister Taras Kachka said that Ukrainian businesses will now have time and opportunities to enter one of the region’s largest markets, while Ukraine will be able to approach EU membership with export experience, established partnerships, and developed logistics networks.
According to Kachka, the key element of the agreement is its tariff framework aimed at developing the processing industry.
"Currently, 77% of our exports to Turkey consist of grain and sunflower oil. These are mainly raw materials that Turkey processes on its territory. The agreement removes barriers specifically for processed products: food products, feed concentrates, and more deeply processed oil products. Goods produced in Ukraine will enter the Turkish market duty-free. This is a strong argument in favor of investing in processing industries in Ukraine," Kachka said.
Another important aspect of the agreement’s ratification is its European dimension. The agreement provides for the application of the updated Regional Convention on Pan-Euro-Mediterranean preferential rules of origin. Ukrainian producers will be able to use Turkish materials and components while maintaining preferential origin status for products exported to the EU.
