The agreement on free trade between Turkey and Ukraine is aimed at eliminating obstacles to Turkish exporters, ensuring the possibility of free bilateral trade without transport quotas, which in turn will lay the way to achieve the target of bilateral trade in $ 10 billion.
According to Anadolu, the new milestone in the relations of Ankara and Kyiv begins with the publication in the official messenger of Turkey a resolution on the agreement on free trade between Turkey and Ukraine, signed in Kyiv, the capital of Ukraine, February 3, 2022.
A free trade agreement, negotiations on which began between the two countries back in 2011, includes important points in the trade in goods and services. The agreement covers many issues: from the abolition of customs duties and transport quotas to incentives and protection of mutual investments.
– a goal in bilateral trade – $ 10 billion
The volume of exports from Turkey to Ukraine last year increased by 20.4 percent compared to the previous year, reaching $ 2.7 billion. This indicator in 2022 amounted to approximately $ 2.3 billion.
According to the results of last year, the volume of foreign trade between the two countries exceeded $ 6.1 billion.
In the first half of the current year, Turkey exports to the country in question amounted to $ 1.5 billion, and import from this country – $ 1.4 billion. For the same period, the volume of bilateral trade was estimated at $ 2.9 billion.
With the entry into force of the agreement on free trade between Turkey and Ukraine, the volume of bilateral trade is planned to increase to $ 10 billion in a short time.
– the loss of the market will be prevented by Turkish exporters
, within the framework of the agreement between the two countries, obstacles to Turkish exporters will be eliminated. The simplification will be achieved in relation to a significant part of the Ukrainian agricultural and industrial products.
In accordance with the agreement, tax benefits will be applied to some agricultural and metallurgical products from Turkey.
The market loss will be prevented for Turkish companies that will be able to compete on similar conditions with exporters of the European Union.
– will encourage mutual investments
The agreement will bring significant benefits, especially in the field of transport and logistics. In this context, unit transportation of bilateral and transit transportation will be guaranteed, and trade between the two countries will be free without transport quotas.
In addition, with the entry into force of an agreement, the purpose of which is to encourage and protect mutual investments, investment transactions and administrative processes in all sectors where the Turkish business world works in Ukraine will be simplified on the basis of transparent and predictable rules.