What will a free trade zone with Turkey provide: the Ukrainian ambassador's response
Date: 2024-09-16 Author: Nazar Litvin Categories: ECONOMY
This was reported by the Ukrainian ambassador to Turkey Vasyl Bodnar.
As the ambassador noted, calculations showed the possibility of growth, first of all, of Ukrainian exports to Turkey. Today, tariff restrictions on Ukrainian finished products are quite high, from 30% to 180%.
"Now these tariffs will be gradually lifted, especially on industrial products, since more than 90% of industrial products can be supplied to Turkey at a zero rate. With agriculture, things are a little different, since each side is protecting its market. At the beginning, about 7.5-8% of agricultural products can be supplied at a zero rate," he said.
According to him, certain transition periods have been established, allowing certain groups of goods to pass through them with a corresponding reduced duty rate or quotas. And this will also allow testing the market to see how much a particular product from one country or another does not pose a threat to the domestic market.
A corresponding trade committee headed by two deputy ministers of trade and economy is being created to monitor the implementation of the Agreement. There is already a corresponding agreement on the possibility of revising this agreement for more beneficial conditions. Therefore, work in this regard is underway, the ambassador said.
"Currently, the trade volume averages about 7 billion dollars a year. The calculation is that in 2-3 years we can reach 10 billion plus and with a tendency to grow, specifically based on finished Ukrainian products on the Turkish market," he said. Bodnar.
Recall that Ukraine and Turkey signed a free trade agreement in Kyiv on February 3, 2022, in the presence of Presidents Volodymyr Zelensky and Recep Tayyip Erdogan.
According to the Ministry of Economy, the agreement provides, in particular, for Turkey to abolish import duties on 93.4% of industrial goods and 7.6% of agricultural goods. After the end of the transition periods of 3-7 years, Turkey will abolish import duties on another 1.5% of industrial goods and 28.5% of agricultural goods. Ukraine, for its part, will abolish import duties on about 56% of industrial goods and 11.5% of agricultural goods. After the end of the transition periods (2-5 years for industrial goods, 2-10 years for agricultural goods), Ukraine will abolish import duties on another 43.2% of industrial goods and 53.7% of agricultural goods.
As the ambassador noted, calculations showed the possibility of growth, first of all, of Ukrainian exports to Turkey. Today, tariff restrictions on Ukrainian finished products are quite high, from 30% to 180%.
"Now these tariffs will be gradually lifted, especially on industrial products, since more than 90% of industrial products can be supplied to Turkey at a zero rate. With agriculture, things are a little different, since each side is protecting its market. At the beginning, about 7.5-8% of agricultural products can be supplied at a zero rate," he said.
According to him, certain transition periods have been established, allowing certain groups of goods to pass through them with a corresponding reduced duty rate or quotas. And this will also allow testing the market to see how much a particular product from one country or another does not pose a threat to the domestic market.
A corresponding trade committee headed by two deputy ministers of trade and economy is being created to monitor the implementation of the Agreement. There is already a corresponding agreement on the possibility of revising this agreement for more beneficial conditions. Therefore, work in this regard is underway, the ambassador said.
"Currently, the trade volume averages about 7 billion dollars a year. The calculation is that in 2-3 years we can reach 10 billion plus and with a tendency to grow, specifically based on finished Ukrainian products on the Turkish market," he said. Bodnar.
Free Trade Agreement with Turkey
According to the Ministry of Economy, the agreement provides, in particular, for Turkey to abolish import duties on 93.4% of industrial goods and 7.6% of agricultural goods. After the end of the transition periods of 3-7 years, Turkey will abolish import duties on another 1.5% of industrial goods and 28.5% of agricultural goods. Ukraine, for its part, will abolish import duties on about 56% of industrial goods and 11.5% of agricultural goods. After the end of the transition periods (2-5 years for industrial goods, 2-10 years for agricultural goods), Ukraine will abolish import duties on another 43.2% of industrial goods and 53.7% of agricultural goods.
