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In a significant move aimed at bolstering economic cooperation, Ukraine’s parliament, the Verkhovna Rada, has ratified a long-awaited free trade agreement with Türkiye. The agreement, which was signed in February 2022, promises to create a more favorable trade environment for businesses across both nations, paving the way for enhanced economic growth and development.
The ratification of the free trade agreement comes at a time when Ukraine is grappling with the aftermath of the Russian invasion and the ongoing conflict that has severely impacted the country’s economy. By strengthening ties with Türkiye, Ukraine is seeking to diversify its trade relations, reduce its reliance on Russia and promote regional economic stability.
Under the agreement, Ukraine and Türkiye have committed to eliminate tariffs on the majority of their exports, which includes key sectors such as agriculture, food products, textiles, and machinery. This will enable Ukrainian businesses to penetrate the large Turkish market, while Turkish companies will have greater access to Ukraine’s domestic market, creating new opportunities for trade and investment.
Furthermore, the agreement is expected to stimulate economic growth in both countries by reducing trade barriers, encouraging competition and fostering an environment of greater transparency and cooperation. According to government officials, the free trade agreement has the potential to increase bilateral trade by at least 15% annually, generating thousands of new jobs and driving economic growth.
In response to the ratification, Türkiye’s government has praised the move as a major step forward in strengthening bilateral ties. “This agreement will further boost our economic cooperation and facilitate the creation of jobs in both countries,” said Turkish Economy Minister, Nureddin Nebati.
Ukraine’s parliamentarians who voted in favor of the agreement echoed similar sentiments, emphasizing the importance of enhancing trade relations with Türkiye to promote regional economic stability. “Today, we have taken a significant step forward in our efforts to strengthen trade and economic cooperation with our European and regional partners,” said Ukrainian Economy Minister, Yulia Svyridenko.
The ratification of the free trade agreement marks a significant win for Ukraine as it continues to navigate the complex landscape of post-conflict economic recovery. By forging stronger economic ties with Türkiye, Ukraine is well-positioned to drive growth and development in the region, creating new opportunities for trade, investment and job creation.