Ukraine and UK to extend cancellation of import duties and tariff quotas in bilateral trade for another 5 years

February 8, 2024 Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine, and Gregory William Hands, UK Minister of State for Trade Policy, signed Agreement No. 3 in the form of an exchange of letters, which amends the Political, Free Trade and Strategic Partnership Agreement between the United Kingdom of Great Britain and Northern Ireland and Ukraine in terms of commitments to trade liberalisation between the parties.

“An important milestone in the trade relations between our countries was the conclusion of an agreement to fully liberalise trade in 2022. As a result, bilateral trade in goods between Ukraine and the UK exceeded USD 1.4 billion, which is 20% more than in 2022. Today, we have signed a new agreement that will extend full trade liberalisation for another 5 years and significantly intensify our trade partnership. This will strengthen Ukraine’s export potential, promote business development and the national economy,” said Yuliia Svyrydenko.

The agreement provides for the elimination of all import duties and tariff quotas in bilateral trade. It will be in force for a 5-year period until 31 March 2029 (except for eggs and poultry products, the liberalisation of trade in which will be extended for 2 years – until 1 April 2026) and may be extended for a new term by agreement between the parties.

In addition, the Agreement No. 3 contains articles on the safeguard mechanism, which ensure the consistency of the new provisions with the Agreement No. 1, an article on the possibility of extending the term of the Agreement No. 3 by the parties, as well as articles on the entry into force and duration of the Agreement.

Continued liberalisation of trade in goods will help to revitalise trade between Ukraine and the UK and increase exports of domestic products traditionally supplied to the UK market by Ukrainian producers. In particular, these include flour, grain, dairy products, poultry and semi-finished products, tomato paste, honey, corn, wheat, juices, sugar, etc. Ukraine will also have the opportunity to plan export logistics more flexibly and increase exports of high value-added goods in the future.

The agreement will enter into force once all national procedures have been completed.