Business

Ukraine has expanded its access to the markets of four European countries

Ukraine has signed an updated Free Trade Agreement with the countries of the European Free Trade Association – Switzerland, Norway, Iceland and Liechtenstein. This was announced by the Prime Minister of Ukraine Denys Shmyhal, Komersant ukrainskyi reports.

The new agreement includes updated sections on trade facilitation, sanitary and phytosanitary measures, public procurement, technical cooperation, and intellectual property protection. New chapters have also been added: e-commerce, support for small and medium-sized businesses, trade and sustainable development.

“This is a restart of the 2010 agreement, adapted to the new reality. It opens up new opportunities for Ukrainian business in large markets with high purchasing power,” the Prime Minister emphasized.

In addition, separate updates to the agreements with Norway, Iceland and Switzerland in the field of agriculture were signed. This will reduce barriers and expand access for Ukrainian goods to these markets.

What are the specific benefits for Ukrainian products?

The agreement expands access to the markets of Switzerland, Norway, Iceland and Liechtenstein, and, above all, completely eliminates duties on industrial products.

In the agricultural part of the agreement with the European Free Trade Association (EFTA) countries, duties on a significant number of agricultural products are canceled and reduced.

The agreement with Iceland provides for

– complete elimination of duties on 142 products (vegetables, wheat, food, etc.)

– partial reduction of duties on 5 products.

The number of duty-free goods increased by 9.8%, with a partial reduction by 3.5 times (compared to the 2010 agreement).

The agreement with Norway provides for:

– complete elimination of duties on 107 goods (vegetables, edible root crops, fresh, boiled and canned berries and nuts, oils, juices, etc;)

– partial reduction of duties for 78 goods (yogurt, butter and spreads, eggs, vegetables, canned fruits and nuts, etc.)

The number of duty-free goods increased by 11.4%, and the number of goods with partial reduction increased by 2.7% (compared to the 2010 Agreement).

The agreements with Switzerland and Liechtenstein provide for

– complete elimination of duties on 427 goods (pork, milk, cheese, honey, vegetables, fruits and berries, flour, animal and vegetable oils, canned meat, fruit, etc.)

– a partial decrease by 163 goods (live animals, meat of cattle, pigs, other animals, poultry, dairy products, eggs, beans, vegetables, berries, etc.)

Overall, the number of duty-free goods increased by 66.2%.

In addition, the Agreement fixes the current 0% rates for a number of goods that were excluded from the Agreement.

What is the scope of Ukraine’s cooperation with the European Free Trade Association countries?

In 2024, the trade turnover between Ukraine and EFTA countries (Iceland, Norway, Switzerland, and Liechtenstein) amounted to almost EUR 1.3 billion. The average growth rate over the past five years for Ukrainian exports to EFTA countries is 4.9%, and for imports from EFTA countries to Ukraine – 9.3%.

The main export items to Ukraine are:

– fish and seafood (229 million euros)

– medicines and pharmaceutical products (143 million euros)

– arms and ammunition (77 million euros)

– vehicles (77 million euros)

– electrical equipment (44 million euros)

Main import items to the EFTA countries:

– fats and oils (37 million euros)

– precious stones and metals (EUR 26 million)

– clothing and accessories (22 million euros)

– furniture and mattresses (20 million euros)

– alcoholic and non-alcoholic beverages (EUR 20 million).