On February 8, the UK government announced that it would extend tariff-free trade on most imports from Ukraine for a further five years until 2029, in a bid to support Ukraine's long-term economic recovery from the Russian war.
The previous agreement, which removed taxes on all trade between the UK and Ukraine, was introduced in 2022 following Russia's full-scale invasion of Ukraine and was due to expire in March 2024. Under the free trade agreement, all tariffs on imported goods from Ukraine have been reduced to zero and all quotas have been eliminated.
The tariff-free trade extension is aimed at supporting Ukraine's long-term economic recovery from the war with Russia, which disrupted supply chains and transportation routes and affected Ukraine's ability to export goods.
The five-year extension applies to all items except eggs and poultry, which will only be extended for two years. According to the announcement, British companies will also benefit from the removal of tariffs on exports to Ukraine.
“This extension will expand opportunities for Ukrainian business in key sectors such as oil, grains and other agri-food products,” said William Bain, head of trade policy at the British Chambers of Commerce.
UK Trade Policy Secretary Greg Hands said: “This deal provides much-needed long-term economic support to Ukraine, its businesses and people, and provides protection from (Russian President Vladimir) Putin's illegal aggression. “This is extremely important for recovery.”
The UK government announced that Hands and Ukraine's First Deputy Prime Minister Yulia Sviridenko will sign the revised agreement in a virtual ceremony on February 8.
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