Sunday, June 23, 2024
spot_img
HomeInsightsUK extends tariff-free trade with Ukraine until 2029

UK extends tariff-free trade with Ukraine 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 sign an extension in a virtual ceremony.

ENGLAND / UKRAINE – Most UK-Ukraine trade will remain tariff-free until at least 2029, following the extension agreed on February 8, 2024, to support Ukraine’s long-term economic recovery from the war, says the Department for Business and Trade.

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. The 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, the department for business and trade, explained:

“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.
spot_img
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

spot_img
spot_img
spot_img

Caribbean News

St Lucia’s security challenges continues

- A New Minister of Home Affairs assumes office - DPP highlights nothing progressive - RSLPF's Sgt. 806 Ann Joseph reports on progress following the recent...

Global News

TECO – TAITRA thrilled audiences at Taiwan Pavillion – Collision 2024 in Toronto

By Caribbean News Global TORONTO, Canada – Taiwan Pavilion E255 at Collision 2024 thrilled audiences featuring a diverse array of startups showcasing Taiwan's vibrant...