UK extends duty-free trade with Ukraine for five years
Photo: armyinform.com.ua
On Thursday, February 8, the United Kingdom announced that it would extend duty-free trade with Ukraine until 2029.
However, this term for some goods is set not for five years but for two years, Rubryka reports, citing Reuters.
The UK Department for Business, Energy, and Industrial Strategy announced that duty-free trade would be extended for all goods for five years, except for eggs and poultry, the term of which would be extended for two years.
At the same time, the department said British firms also benefit from the abolition of tariffs on exports to Ukraine.
"This agreement provides the necessary long-term economic support to Ukraine, its enterprises, and people, which is crucial for its recovery," said Junior Trade Minister Greg Hands.
He added that UK support would continue "as long as it takes."
The United Kingdom abolished tariffs on all its trade with Ukraine after the start of the Russian invasion of Ukraine almost two years ago. The agreement on duty-free trade, signed in May 2022, was supposed to expire on March 31, 2024.
Two years ago, the UK was the first country to abolish tariffs on all trade with Ukraine. In this way, the country decided to support Kyiv after the start of Russia's full-scale war, which disrupted supply chains and transport routes and affected Ukraine's ability to export goods.
The UK government initially proposed duty-free trade in May 2022 on a non-reciprocal basis without waiting for similar proposals from Kyiv. However, Ukraine insisted on abolishing tariffs on British goods imported into Ukraine. British businesses can also benefit from duty-free exports.
Duty-free trade between Ukraine and the EU
On February 7, Prime Minister Denys Shmyhal welcomed the European Commission's decision to extend the full abolition of tariffs on Ukrainian products until June 2025, which, together with the Association Agreement, will provide Ukraine with the so-called "economic visa-free regime." According to Shmyhal, Ukraine expects to consolidate the abolition of tariffs on goods in the Association Agreement with the EU.
In late January, the European Commission officially proposed extending the suspension of import duties for agricultural products from Ukraine for 2024 with import restrictions. They involved four types of products from Ukraine: poultry meat, eggs, and sugar.
On May 2, the European Commission adopted exceptional and temporary safeguard measures for imports of certain agricultural products from Ukraine after pressure from five EU member states accusing Ukrainian imports of collapsing local prices.
