Free Trade Agreement signed between Ukraine and Turkey

A Free Trade Agreement signed between Ukraine and Turkey on 3 February

A milestone event for Ukraine took place on 3 February 2022: a Free Trade Agreement (the "Agreement") was signed between Ukraine and Turkey. The Agreement provides for:

• zero customs duty rates for Ukrainian goods imported in Turkey (95% of total goods)
• tariff quotas or reduced customs duties on the remaining 5% of goods items¹
• identification of origin based on the rules of the Regional Convention on Pan-Euro-Mediterranean Preferential Rules of Origin (same as for the EU, Georgia and Israel).

Once the Agreement is ratified and communicated by the European Commission, diagonal cumulation rules will apply between Turkey and Ukraine, opening new opportunities to Ukrainian manufacturers. 

Turkey is an important trading partner for exports of Ukrainian products. During 2021, the trade between Ukraine and Turkey amounted to nearly USD 7.4 billion, a 52% increase on 2020.  Key commodities exported to Turkey are ferrous metals and grain crops².

The Ministry of Economy of Ukraine expects the annual exports to Turkey to grow by the estimated UAH 313 million. 

The Agreement is now in the process of ratification by Ukrainian and Turkish governments. We will follow the matter and provide an update when the Agreement comes into effect.

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¹ According to official data published by the Ministry of Economy of Ukraine

² According to official data published by the State Customs Service of Ukraine