The UK extends tariff-free trade with Ukraine until 2029
In a move aimed at bolstering Ukraine's economic recovery in the wake of Russia's invasion, the United Kingdom has announced an extension of tariff-free trade with Ukraine until 2029.
This agreement, described as the most generous tariff break offered by any country, was formalized today in a virtual ceremony attended by UK Trade Minister Greg Hands and Ukraine’s First Deputy Prime Minister Yuliia Svyrydenko.
The extension of tariff-free trade signifies a continuation of the UK's steadfast support for Ukraine, following its initial decision two years ago to remove tariffs on all trade with the country. By extending this commitment for an additional five years, the UK aims to provide much-needed stability and certainty for Ukrainian businesses amid the ongoing conflict.
Under the terms of the agreement, the majority of goods traded between the UK and Ukraine will remain tariff-free until at least 2029. This includes key sectors such as oils, grains, and agri-foods, which are vital to Ukraine's economy. Additionally, Ukraine has agreed to reciprocate the UK's approach, ensuring that British businesses can also benefit from tariff-free exports to Ukraine.
The extension of tariff-free trade comes at a critical time for Ukraine, as the country continues to grapple with the disruptions caused by Russia's invasion. Supply chains and transport routes have been severely impacted, hindering Ukraine's ability to export goods and maintain economic stability.
In addition to the extension of tariff-free trade, the UK government has reiterated its commitment to supporting Ukraine through various channels, including military, humanitarian, and economic aid.
The recent Ukraine Recovery Conference held in London, which raised over $60 billion towards Ukraine's recovery and reconstruction, exemplifies the international community's solidarity with Ukraine during these challenging times.
The announcement of the tariff-free trade extension underscores the importance of international cooperation in addressing the economic fallout of conflicts such as the one in Ukraine. By providing tangible support to Ukrainian businesses, the UK aims to contribute to the country's long-term recovery and stability while also strengthening bilateral ties between the two nations.
