Trade with Türkiye: New Opportunities for Business

16.07.2026

2 min

On 14 July 2026, the Verkhovna Rada of Ukraine ratified the Free Trade Agreement between the Government of Ukraine and the Government of the Republic of Türkiye (Draft Law No. 0340 of 18 August 2025). Türkiye ratified the Agreement on 2 August 2024.

What Does This Mean?

The Agreement will promote the further development of bilateral trade and economic cooperation between the two countries and enable Ukrainian producers to benefit from the liberalization of goods and services markets in the Republic of Türkiye. It also creates new opportunities for businesses to expand export markets as well as develop and modernize their production capacities.

In particular, the Agreement provides for:

  • the gradual elimination of import duties and other trade barriers, improving the competitiveness of Ukrainian products;
  • equal treatment for service providers, without discrimination compared to domestic companies;
  • simplified procedures for establishing branches and subsidiaries;
  • the development of digital trade through the mutual recognition of electronic signatures, the protection of personal data, and enhanced consumer protection in the online environment;
  • clear competition rules, the prohibition of anti-competitive practices, and a transparent mechanism for resolving trade disputes through arbitration.

According to the Ministry of Economy, Environment and Agriculture of Ukraine, the Agreement provides for full liberalization of access to the Turkish market for 84% of Ukrainian goods. Türkiye is one of Ukraine’s key trading partners. In 2025, it ranked second among destinations for Ukrainian exports and third in terms of total bilateral trade turnover.

Another Step Toward EU Membership

According to Deputy Prime Minister Taras Kachka, the Agreement gives Ukrainian businesses the time and opportunity to enter one of the region’s largest markets, while enabling Ukraine to approach EU membership with practical export experience, established partnerships, and well-developed logistics.

Currently, 77% of Ukraine’s exports to Türkiye consist of grain and sunflower oil. These are primarily raw materials that are processed in Türkiye. The Agreement removes barriers specifically for processed products, including food products, feed concentrates, and higher value-added oil products. Goods manufactured in Ukraine will be able to enter the Turkish market duty-free, creating a strong incentive to invest in processing industries within Ukraine.

The Agreement also provides for the application of the updated Regional Convention on Pan-Euro-Mediterranean Preferential Rules of Origin. Ukrainian manufacturers will be able to use Turkish materials and components while maintaining the preferential origin status of their products for export to the European Union.

“In fact, this Agreement is preparation for our main objective—full membership in the European Union. We are already building partnerships, gaining valuable experience, and preparing Ukrainian businesses to operate successfully in the EU single market,” Taras Kachka noted.

At the same time, it should be taken into account that upon Ukraine’s accession to the European Union, all existing free trade agreements are expected to cease to apply. At present, Ukraine has 20 free trade agreements, while the European Union has 48. Relations between the EU and Türkiye are governed not by a traditional free trade agreement but by a Customs Union covering industrial goods and processed agricultural products.

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