On Thursday, February 8, the United Kingdom announced an extension of duty-free trade with Ukraine until 2029. However, according to Reuters, some goods will have a shorter extension term, lasting two years.
The UK Department for Business, Energy, and Industrial Strategy declared that duty-free trade would continue for all goods for five years, with the exception of eggs and poultry, which will have a two-year extension.
The department highlighted that British businesses would also enjoy the benefit of tariff removal on exports to Ukraine.
Junior Trade Minister Greg Hands stated, “This agreement provides the necessary long-term economic support to Ukraine, its enterprises, and people, which is crucial for its recovery.” He emphasized that UK support would be ongoing “as long as it takes.”
The United Kingdom had previously eliminated tariffs on all trade with Ukraine following the onset of the Russian invasion of Ukraine nearly two years ago. The agreement on duty-free trade, inked in May 2022, was originally set to conclude on March 31, 2024.
The UK was the first nation to remove tariffs on all trade with Ukraine two years ago, demonstrating its support for Kyiv amidst Russia’s full-scale war, which disrupted supply chains, transport routes, and Ukraine’s export capabilities.
Initially proposed by the UK government in May 2022 on a non-reciprocal basis, duty-free trade commenced without waiting for similar proposals from Kyiv. However, Ukraine insisted on reciprocal tariff removal on British goods imported into Ukraine, allowing British businesses to also benefit from duty-free exports.
Duty-Free Trade between Ukraine and the EU
Prime Minister Denys Shmyhal welcomed the European Commission’s decision to extend the complete abolition of tariffs on Ukrainian products until June 2025, along with the Association Agreement, providing Ukraine with an “economic visa-free regime.” Shmyhal expressed Ukraine’s expectation to formalize tariff removal on goods in the Association Agreement with the EU.
In late January, the European Commission proposed extending the suspension of import duties for agricultural products from Ukraine for 2024, with import restrictions on four types of products: poultry meat, eggs, and sugar.
On May 2, the European Commission implemented extraordinary and temporary safeguard measures for imports of certain agricultural products from Ukraine, following pressure from five EU member states concerned about the impact of Ukrainian imports on local prices.
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