EFTA and Ukraine meet to launch the modernisation process of their Free Trade Agreement

On 27 June 2023, during the EFTA Ministerial meeting held in Schaan, Liechtenstein, esteemed representatives from the EFTA States and Ukraine convened via videoconference to discuss the modernisation of the existing EFTA-Ukraine Free Trade Agreement.

Ukraine's First Deputy Prime Minister and Minister of Economy, Yulia Svyrydenko, engaged in constructive discussions with Dominique Hasler, the Ministerial Chair of the EFTA Council and Minister for Foreign Affairs, Education, and Sport of Liechtenstein; Thórdís Kolbrún Reykfjörd Gylfadóttir, the Minister of Foreign Affairs of Iceland; Halvard Ingebrigtsen, the State Secretary of Trade and Industry of Norway; and Guy Parmelin, the Federal Councillor and Head of the Federal Department of Economic Affairs, Education, and Research of Switzerland.

The participants expressed their commitment to initiate negotiations between Ukraine and EFTA, with the aim of modernising their existing free trade agreement. They acknowledged that modernising the Agreement presents a remarkable opportunity to significantly strengthen the economic relations between the Parties, benefiting all involved.

EFTA and Ukraine had concluded a free trade agreement in 2010. In May 2022, Ukraine formally requested a revision of the EFTA-Ukraine Free Trade Agreement to which the EFTA Ministers demonstrated their willingness to explore the possibility of modernising it. During the Ministerial meeting in Schaan, both Parties jointly announced the commencement of negotiations for the modernisation of the Agreement

Find out more about the EFTA-Ukraine Free Trade Agreement and their trade relations here.

Economic relations between the EFTA States and Ukraine

Total trade between the parties has been growing exponentially over the last ten years. In 2021, total trade between the EFTA States and Ukraine reached USD 1042 million, of which USD 228 million represented imports from Ukraine and USD 814 million represented exports from the EFTA States. Exports from the EFTA States to Ukraine had an average annual growth rate of 16.6% over the last five years.

The main imports to the EFTA States were woven apparel or clothing accessories (11.4%), while most exports to Ukraine were fish and crustaceans (24.3%) and pharmaceutical products (24.2%). Total trade between the parties continues to increase this year.

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