UK and Ukraine extend tariff-free trade on majority of goods for
an additional five years.
Move designed to help Ukrainian businesses impacted by the war
and is the most generous tariff break offered by any country.
UK Trade Minister and Ukraine’s First Deputy Prime
Minister Yuliia Svyrydenko to sign extension in a virtual
ceremony today.
Most UK-Ukraine trade will remain tariff-free until at least
2029, thanks to an extension agreed today to support Ukraine’s
long-term economic recovery from the war.
The commitment forms part of the UK’s efforts to support Ukraine
following Russia’s full-scale and illegal invasion, which has
disrupted supply chains and transport routes and impacted
Ukraine’s ability to export goods.
The UK was the first country to remove tariffs on all its trade
with Ukraine two years ago. Today’s announcement to significantly
extend this existing agreement sees the UK continue that leading
role, giving Ukrainian businesses and exporters much needed
economic support and certainty.
UK Minister of State for Trade Policy will formally sign the agreement
to extend the liberalisation measures with Ukraine’s First Deputy
Prime Minister and Minister for Economic Development and Trade
Yuliia Svyrydenko in a virtual ceremony today.
UK Minister for Trade Policy said:
This agreement provides much needed long-term economic support to
Ukraine, its businesses and people – critical to its recovery
from Putin’s illegal invasion.
The UK will continue to do everything in its power to support
Ukraine’s fight against Putin’s invasion, for as long as is
needed.
, Head of Trade Policy, British
Chambers of Commerce, said:
The extension of zero tariff trading terms for a further five
years for qualifying goods is a welcome development. It plays a
vital part in helping Ukraine’s economy at a time when they are
under huge pressure, easing supply chain access.
Alongside the Digital Trade Agreement, which aims to bolsters
e-commerce trade between our countries, this extension will boost
opportunities for Ukrainian business in key sectors such as oils,
grains and other agri-foods.
In May 2022, the UK removed all tariffs under the UK-Ukraine Free
Trade Agreement until March 2024. This precedent has been
followed by similar initiatives from the EU and other partners.
This latest agreement will see tariff-free trade extended on all
goods for five years, except eggs and poultry which will be
extended for two years.
Ukraine has also agreed to match the UK’s approach, meaning
British businesses can also benefit from tariff-free exports to
Ukraine.
Tariff liberalisation forms an important part of UK Government’s
overall support to Ukraine, along with the military, humanitarian
and economic aid.
The Ukraine Recovery Conference held in London last year
strengthened international support for Ukraine and raised over
$60 billion towards Ukraine’s recovery and reconstruction.
Background
- The UK Government originally offered tariff-free trade in May
2022 on a nonreciprocal basis, with no expectation or ask of the
Ukrainian Government in return, however Ukraine insisted they
also remove tariffs on UK goods entering Ukraine.
- The tariff-free trade agreement signed in May 2022 was due to
expire on 31 March 2024. The five-year extension of
liberalisation is for all goods except for poultry and eggs,
which will be liberalised for two years.
- The signing builds on the Prime Minister’s commitment that
the UK will provide £2.5 billion in military aid to Ukraine in
2024/25, an increase of £200 million on the previous two years,
which will include the largest delivery of drones to Ukraine from
any nation. The UK has provided over £10 billion in military,
humanitarian and economic support to the UK since Putin’s
full-scale invasion in 2022.
