Ukraine opens UAE free trade deal, cutting tariffs in first Gulf pact

Business

2 July, 01:00 PM

Author: Alex Stezhensky
A Comprehensive Economic Partnership Agreement between Ukraine and the United Arab Emirates took effect on July 1, creating a free trade area between the countries by removing tariffs.

Ukraine’s State Customs Service announced the move. The agreement was signed on Feb. 17, 2025, in Abu Dhabi and ratified by the Verkhovna Rada, Ukraine’s parliament, on Feb. 26, 2026, under law No. 4802-IX.

“The Comprehensive Economic Partnership Agreement between the UAE and Ukraine is a landmark in the development of our economic relations. It is designed to boost trade flows, open new opportunities for investment and deepen cooperation in key sectors of the economy, benefiting both countries,” UAE Minister of Foreign Trade Thani bin Ahmed Al Zeyoudi said, commenting on the launch of the free trade area with Ukraine.

It is Ukraine’s first agreement with a Gulf state. The deal opens goods markets in both countries. Tariffs will be removed on 99% of Ukrainian imports of goods from the UAE and 97% of Ukrainian exports to the UAE.

In 2025, bilateral non-oil goods trade between the UAE and Ukraine stood at $346.8 million. The Comprehensive Economic Partnership Agreement is intended to restore growth in that trade, which peaked at $904.4 million in 2021.

Forecasts show the agreement will add $369 million to the gross domestic product of the United Arab Emirates and $874 million to Ukraine’s GDP by 2031.

Ukraine’s Economy Ministry estimates that in the medium and long term, the agreement could shift the trajectory of real GDP growth by 0.1%.

Ukrainian exports to the UAE are expected to grow in key sectors, including metallurgy and the food industry, particularly flour milling and vegetable oil production.

Earlier, Switzerland and India agreed on a free trade deal after 16 years of negotiations.

In March 2025, European Commission President Ursula von der Leyen and Prime Minister Narendra Modi agreed to conclude a free trade agreement between the EU and India by the end of 2025.

In January 2026, the European Union and India agreed to create a free trade area after nearly 20 years of negotiations.

Інші новини

Все новости