Free trade and other significant agreements
Free trade and other significant agreements
Ukraine and other countries have signed 25 free trade agreements covering the markets of 47 countries.
1. UPDATED FREE TRADE AGREEMENT BETWEEN UKRAINE AND THE EFTA
Key changes:
• Complete abolition of duties on industrial products.
• Cancellation and reduction of duties on a significant part of agricultural goods:
- Iceland — 142 duty-free goods.
- Norway — 107 duty-free goods, 78 — with reduced rates.
- Switzerland and Liechtenstein — 427 duty-free goods, 163 with reduced rates.
• Overall growth in duty-free goods: 66.2%.
New sections of the Agreement:
• E-commerce: legal regulation of e-commerce, signatures, contracts, paperless trade.
• Small and medium-sized enterprises (SME): improved access to information, contact points, publication of information in English.
• Trade and sustainable development: environmental and social standards in trade relations.
Updated provisions:
• Trade in goods and SPS measures: in accordance with WTO agreements.
• Simplification of trade procedures: transparency in licensing, clear rules for exporters.
• Public procurement: improving access of Ukrainian suppliers to EFTA markets.
• Intellectual property: cooperation and protection.
• Increased access of Ukrainian goods and services to the markets of the EFTA countries.
• Recovery of the Ukrainian economy.
• Strengthening economic cooperation and trade relations with Norway, Iceland, Switzerland and Liechtenstein.
• Promoting the modernisation and digitalisation of trade procedures to increase efficiency.
2. COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT BETWEEN UKRAINE AND THE UNITED ARAB EMIRATES (UAE)
• Free access of Ukrainian goods to the UAE market for 96.6% of product lines.
• Lifting of restrictions on the share of foreign capital at 49% for Ukraine that will allow entrepreneurs to register companies with up to 70% of foreign capital, and gradually up to 100% in certain sectors.
• Facilitating digital trade and abolishing duties on electronic services.
• Establishment of the Ukraine-UAE Investment Council.
• Attracting investments from the UAE to Ukraine.
• Simplifying the registration of Ukrainian companies in the UAE.
• Growth of Ukrainian exports in key sectors: metallurgy, food industry, in particular flour milling and oil production.
3. UPDATE OF THE AGREEMENT BETWEEN UKRAINE AND THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND ON POLITICAL COOPERATION, FREE TRADE AND STRATEGIC PARTNERSHIP
• Deeper tariff liberalisation: amendments to the Agreement on Political Cooperation, Free Trade and Strategic Partnership between Ukraine and the United Kingdom of Great Britain and Northern Ireland were introduced, which provide for the abolition of all import duties and tariff quotas in bilateral trade.
• The agreement will be in force until 31 March 2029, with the exception of two commodity items — eggs and poultry products, — the liberalization of trade with which has been extended for 2 years — until 01 April 2026.
• Investment incentives: The United Kingdom provides preferences to Ukrainian businesses and access to its financial markets.
• Expanding exports of Ukrainian agricultural products.
• Strengthening economic cooperation between the parties to the Agreement.
4. FREE TRADE AGREEMENT BETWEEN UKRAINE AND TURKEY
• Abolition of duties: Turkey cancels duties for 93.4% of industrial goods and 7.6% of agricultural goods from Ukraine. Ukraine abolishes duties for 56% of industrial goods from Turkey.
• Protection of domestic producers: Ukraine retains duties on scrap, used cars and second-hand goods.
• Establishment of a Joint Committee: To resolve disputes and monitor the implementation of the agreement.
• Growth in trade between Ukraine and Turkey (expected to reach USD 10 billion).
• Expanding opportunities for Ukrainian exporters (especially in the industrial sector).
5. UPDATE ON THE UKRAINE-CANADA FREE TRADE AGREEMENT
• Liberalisation of trade in services and investments: the agreement provides for liberalisation of the services market on the basis of the “negative list” principle, which means that everything that is not prohibited by the agreement is allowed. This will facilitate the maximum development of trade in services between Ukrainian and Canadian companies.
• Facilitation of temporary entry: employees of Ukrainian companies, providing services in Canada, can apply for temporary entry under facilitated and extended conditions.
• Digital trade: the agreement promotes the development of digital technologies and the construction of a free and open digital ecosystem of the economy, ensuring freedom of cross-border transfer of information and choosing the location of the equipment.
• Cumulation of origin: for goods exported to Canada duty-free, it is allowed to use the components from the EU, the UK and Israel, which expands Ukraine’s involvement in global supply chains
• Strengthening the economic partnership: the updated agreement will contribute to the deepening of economic relations between Ukraine and Canada, stimulating a strong, sustainable and inclusive economic recovery.
• Trade growth: in 2023, the volume of trade between the two countries increased by more than 55% to CAD 695 million. Further growth in trade and investment is expected.
• Expanded participation in global markets: Ukrainian producers have the opportunity to integrate deeper into international supply chains and expand their presence in the Canadian market.
US-Ukraine Reconstruction Investment Fund
On 8 May 2025, the Verkhovna Rada of Ukraine ratified the Agreement between the Government of Ukraine and the Government of the United States of America on the Establishment of the American–Ukrainian Recovery Investment Fund. This Agreement is the first of three planned international legal instruments aimed at laying the groundwork for long-term bilateral cooperation in the areas of subsoil use, investment, and energy security.
Declarative in nature, the Agreement reaffirms and strengthens the strategic partnership between the Parties, supporting the long-term reconstruction and modernisation of Ukraine in response to the widespread devastation caused by russia’s full-scale invasion and in pursuit of a peaceful, sovereign, and resilient Ukraine.
Reconstruction Investment Fund — a pivotal new mechanism aimed at attracting
investment for Ukraine’s economic recovery and strengthening the strategic partnership
between the two nations.
Key aspects of the Agreement
Tax and Trade Guarantees: The Agreement provides for exemption of the Partnership from taxation in both Ukraine and the United States with respect to income and payments related to investment activities in Ukraine. In addition, the United States expects not to apply trade restrictions to resources acquired under the Partnership’s projects.
Partnership Financing: The Government of Ukraine ensures its contribution to the Partnership in the form of an irrevocable right to receive the Agreed Ukraine Income, which is transferred through a special state budget fund. Each Party contributes under the terms of the Limited Partnership Agreement, with the U.S. contribution subject to increase based on the value of any additional military assistance provided to Ukraine.
Partnership’s Priority Access to Investment Opportunities: The Agreement requires Ukrainian authorities to include provisions in permits and contracts ensuring that the Partnership receives priority access to investment-related information in the subsoil use and infrastructure sectors. If the Partnership expresses interest in a project, it must be engaged in good-faith negotiations, and no significantly better terms may be offered to third parties. All measures must comply with Ukrainian law and the country’s obligations to the EU.
Preferential Right to Purchase Extractive Output: The Partnership is granted the right to negotiate the purchase of extractive products on market terms. Ukrainian authorities ensure no third party receives more favorable terms.
Alignment with EU Accession Commitments: If new obligations arise from Ukraine’s EU accession that affect the Agreement, the Parties will hold good-faith negotiations to adopt appropriate amendments.
Ukraine-Agreed Revenue: Defined as 50% of royalties, license fees, and rental payments received by Ukrainian state authorities from:
▪️ New subsoil licenses or special permits issued after the Limited Partnership Agreement comes into effect
▪️ Previously issued licenses not yet industrially exploited by that date
❗️Excludes any revenue from the Partnership or reparations from Russia