EFTA and Ukraine sign modernized free trade agreement

The current FTA between the EFTA countries and Ukraine has been in force since 2012. Compared to the recent FTAs ​​concluded by the EFTA bloc, the current FTA with Ukraine lacks content in a number of areas. Therefore, from the beginning of 2024, the EFTA countries and Ukraine decided to negotiate an update and modernization of this FTA. The negotiations were successfully concluded in December 2024. The modernized FTA will replace the current FTA and is broadly compatible with the FTAs ​​that EFTA has recently concluded with other countries.

The modernized FTA includes new chapters on e-commerce, small and medium-sized enterprises, trade and sustainable development, as well as revised provisions on trade in goods, sanitary and phytosanitary measures, trade facilitation, government procurement, cooperation and intellectual property protection. The new agreement also updates market access for goods and liberalizes trade in certain product categories. This will deepen trade relations and provide greater market access for businesses on both sides.

When the new FTA enters into force, industrial trade between the EFTA countries and Ukraine will be fully liberalised. In the case of agricultural products, Switzerland will also be opened up by Ukraine to a range of agricultural products of interest to Swiss exporters that are not covered by the current FTA. The total agricultural products benefiting from the new FTA will therefore correspond to 99.9% of Switzerland’s current agricultural exports to Ukraine.

The agreement will contribute to Ukraine's economic recovery and growth and strengthen relations between the EFTA countries and Ukraine, benefiting economic sectors of both sides in various areas.

“EFTA member states are committed to supporting Ukraine at this critical time and this modernised FTA reaffirms that. The new agreement is a stepping stone to further Ukraine’s integration into the European market,” said Norwegian Trade Minister Cecilie Myrseth, in her capacity as EFTA President, after the signing ceremony.

“The support Ukraine has received from the EFTA countries is invaluable. We are confident that this modernized FTA will bring concrete benefits to Ukraine and the EFTA countries by facilitating greater cooperation, opening up new opportunities for businesses and contributing to raising the living standards of citizens in these challenging times,” said Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine.

Bilateral trade between EFTA and Ukraine is expected to reach nearly €1.1 billion (about US$1.2 billion) by 2024, with EFTA exports to Ukraine reaching €782 million and imports from Ukraine reaching €241 million. With an average growth rate of 4.9% for EFTA imports and 9.3% for EFTA exports over the past five years, EFTA's surplus in bilateral trade continues to increase. EFTA's main imports from Ukraine are oils and fats (€37 million), precious stones and metals (€26 million), textiles and clothing accessories (€22 million), furniture (€20 million), and beverages and spirits (€20 million). EFTA's main exports to Ukraine are seafood (€229 million), pharmaceuticals (€143 million), arms and ammunition (€77 million), vehicles (€77 million) and electrical machinery and equipment (€44 million).

Ukraine is also an important partner for Switzerland in Eastern Europe. Since the FTA came into effect in 2012, bilateral trade in goods has grown steadily until the conflict with Russia broke out in February 2022, reaching a turnover of more than $800 million in 2021. In addition, Ukraine is also a priority country for Swiss development cooperation.

This modernized FTA will enter into force after the parties complete their internal ratification processes.

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Source: Vietnam Trade Office in Switzerland

Source: https://moit.gov.vn/tin-tuc/thi-truong-nuoc-ngoai/khoi-efta-va-ukraina-ky-ket-hiep-dinh-thuong-mai-tu-do-hien-dai-hoa.html