Ukraine and Turkey signed a free trade agreement

Prime Minister of Ukraine, Denys Shmyhal, and Turkish Trade Minister, Mehmet Mus, signed a bilateral free trade agreement (FTA), according to Interfax-Ukraine.

The document was signed in the presence of Ukrainian President, Volodymyr Zelenskyi, and Turkish President, Recep Tayyip Erdogan, following the negotiations between the parties.

At a meeting on 2 February, the Cabinet of Ministers of Ukraine approved the draft FTA between Ukraine and Turkey. According to First Vice Prime Minister — Minister of Economy, Yuliia Svyrydenko, under the FTA agreement, Turkey resets duties on 10,337 commodity items (95% of the total quantity of goods exported by Ukraine) to zero. Another 1,348 types of products will be subject to tariff quotas or reduced duties.

Until recently, the Turkish nominal export duty rate for Ukrainian goods was 28.9%, while the Ukrainian rate was only 5%. Under the FTA, these rates will be 10% for Turkey and 0.5% for Ukraine.

According to preliminary forecasts by the Institute for Economic Research and Policy Consulting, the agreement will add 2.2% to Ukraine’s GDP and 2.6% to household income. The commodity turnover may grow by 38% as a result of the FTA implementation.

Ukrainian businesses are less optimistic about the FTA terms. Light industry, cement production, mechanical engineering and other sectors are among those that may be affected by the FTA.

Interestingly, in 2021, the commodity turnover between Ukraine and Turkey exceeded $7 billion, of which Ukrainian exports accounted for $4.1 billion and imports to $3.2 billion. 70% of Ukrainian exports to Turkey are metals and grains, i.e. raw materials.

The talks between Ukraine and Turkey have been ongoing since about the mid-2000s, though the countries got back to the issue in 2016. Turkey was more interested in the agreement as it sought to expand its sales markets. In recent years, close political contacts between the leadership of the two countries have only accelerated the process of signing the agreement.

  • Industry

Ukraine reduced rolled steel production by 11.8% y/y in May

In May 2025, Ukrainian steel enterprises reduced production of commercial rolled steel by 4% compared…

Friday June 6, 2025
  • Global Market

World scrap prices continue to stagnate in early June

At the beginning of June 2025, the global scrap market demonstrates overwhelming price stability after…

Friday June 6, 2025
  • Companies

Rio Tinto and Baowu officially open Western Rang mine

The Australian-British mining group Rio Tinto has announced the official opening of its new Western…

Friday June 6, 2025

US CBAM could generate up to $200 billion in revenue within five years – study

The U.S. mechanism for cross-border carbon adjustment could raise up to $200 billion over five…

Friday June 6, 2025
  • Global Market

EU steel imports down 9% y/y in Q1 – EUROFER

In the first quarter of 2025, steel imports to the European Union declined slightly, but…

Friday June 6, 2025
  • Companies

Cleveland-Cliffs cancels hydrogen-based steel project in Ohio

American steelmaker Cleveland-Cliffs has officially canceled its hydrogen-based steel project in Middletown, Ohio. This is…

Friday June 6, 2025