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UK extends tariff-free trade with Ukraine until 2029
UK to support Ukrainian businesses by extending tariff-free trade until 2029
- 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 Greg Hands 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 Greg Hands 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 Greg Hands 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.
William Bain, 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.