Free Trade with Turkey Begins: Which Tariffs Will Be Eliminated and How Will This Benefit Ukrainian Businesses
1 August 04:36
Ukrainian President Volodymyr Zelenskyy has signed a law ratifying the Free Trade Agreement between Ukraine and Turkey. The document paves the way for the creation of a full-fledged free trade zone between the two countries and is expected to facilitate access for Ukrainian goods and services to one of the region’s largest markets.
Information about the signing appeared on the Verkhovna Rada’s official website in the details section of the relevant bill, according to "Komersant Ukrainian"
What the Free Trade Agreement with Turkey Entails
The agreement is based on World Trade Organization (WTO) rules and provides for the gradual liberalization of bilateral trade.
Key provisions of the document include:
- the gradual reduction or complete elimination of import duties on a significant portion of goods;
- the removal of a number of trade barriers;
- the creation of new opportunities for Ukrainian exports;
- liberalization of the services market;
- the mutual granting of national treatment for certain sectors of activity.
The implementation of the agreement is expected to make trade between the countries cheaper and easier for businesses.
Customs procedures will become simpler
The document also provides for the simplification of international trade procedures.
In particular, the parties agreed on:
- simplifying customs clearance;
- strengthening cooperation in the area of sanitary and phytosanitary controls;
- cooperation in the area of technical regulations;
- strengthening the protection of intellectual property rights.
These changes are expected to reduce administrative costs for companies and speed up the movement of goods across the border.
How Ukrainian producers will be protected
A separate section of the agreement is devoted to the protection of the domestic market.
The document allows for the application of:
- anti-dumping measures;
- countervailing duties;
- special safeguard mechanisms.
These measures will be used if a sharp increase in imports poses a threat to Ukrainian producers.
Tariffs will be eliminated for 84% of Ukrainian goods
One of the main benefits of the agreement will be the full liberalization of access to the Turkish market for 84% of Ukrainian goods.
For certain sensitive product categories, the following will apply:
- tariff quotas;
- transitional mechanisms;
- gradual market opening.
This approach will help avoid abrupt changes for manufacturers in both countries.
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Ukrainian producers will gain new opportunities in the EU
A particular advantage will be the application of the updated Pan-Euro-Mediterranean Rules of Origin (PEM).
Thanks to this, Ukrainian companies will be able to:
- use Turkish components;
- retain the preferential origin of their products;
- export finished goods to European Union countries on preferential terms.
In effect, this will allow Ukrainian companies to integrate more actively into European supply chains.
The Verkhovna Rada has already ratified the document
As a reminder, the Verkhovna Rada approved the law ratifying the Free Trade Agreement between Ukraine and Turkey on July 14, 2026.
Following the president’s signature, the document has completed all necessary steps on the Ukrainian side.
The government expects that the launch of a full-fledged free trade zone will contribute to the growth of Ukrainian exports, increased investment, and the development of trade and economic partnership between Kyiv and Ankara.
Turkey is one of Ukraine’s largest trading partners
The Ministry of Economy noted that Turkey is already among Ukraine’s main trading partners.
According to 2025 figures:
- trade between the countries totaled $7.9 billion;
- Ukrainian exports to Turkey reached $2.7 billion;
- Turkey ranked second among Ukraine’s export markets;
- third place in terms of total trade volume.
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