Ukraine moves to expand free trade agreements
NV | 3 February 2025
Ukraine moves to expand free trade agreements
The majority of Ukrainian exports go to the Euro-Mediterranean region, accounting for 76.8% of total exports in 2024, Deputy Minister of Economy and Trade Representative Taras Kachka wrote on Facebook on Feb. 2.
The system of Pan-Euro-Mediterranean cumulation of origin allows for the application of diagonal cumulation between the EU, EFTA States, Türkiye, the countries which signed the Barcelona Declaration, the Western Balkans, the Faroe Islands and Georgia, the Republic of Moldova and Ukraine.
As a result, one of Ukraine’s key economic priorities is to sign free trade agreements (FTAs) with countries in the Pan-Euro-Med (PEM) region.
He listed the countries Ukraine is aiming to secure FTAs with:
- Egypt (2024 exports – $1.6 billion)
- Lebanon ($412 million)
- Tunisia ($330 million)
- Algeria ($314 million)
- Morocco ($160 million)
- Serbia ($130 million)
- Jordan ($98 million)
- Albania ($31 million)
- Bosnia and Herzegovina ($21 million)
- Palestine ($20,000)
- Syria ($8 million)
- Faroe Islands ($14,200).
"The focus here is not just on trade volume but on the opportunity to establish production chains," Kachka explained.
Among other trade priorities, Kachka emphasized the ratification of the FTA with Turkey, highlighting the importance of protecting Ukrainian exporters from sudden tariff increases.
"Turkeye has a history of unexpectedly raising tariffs," he said.
"The FTA serves as a crucial safeguard against such hikes and ensures that, for many products, tariffs will remain at their 2012 levels when negotiations first began."
Additionally, Kachka noted the need to modernize Ukraine’s FTA with the European Free Trade Association (EFTA). He expects the new agreement to be finalized in the first half of 2025.
"In 2024, total exports to EFTA countries amounted to only $143 million, but these are highly integrated markets closely connected to the EU — making them highly attractive for many Ukrainian producers," he added.