New agreement with EFTA countries eliminates tariffs on industrial goods and 676 products from 4 nations
Ukrainian manufacturers will gain expanded access to international markets thanks to a new free trade agreement with the European Free Trade Association (EFTA), which eliminates tariffs on industrial goods and a total of more than 600 products from Switzerland, Norway, Iceland, and Liechtenstein, the Ukrainian Ministry of Economy reported on Tuesday.
The agreement was signed in Kyiv on April 8. On the Ukrainian side, it was signed by First Deputy Prime Minister and Minister of Economy Yulia Svyrydenko. EFTA country representatives included EFTA Chair and Norway's Minister of Trade Cecilie Myrseth, Iceland's Minister of Culture, Innovation and Higher Education Logi Einarsson, Liechtenstein's Ambassador Frank Büchel, and Jacques Gerber, Swiss Ambassador and Commissioner of the Swiss Federal Council for Ukraine.
"Thanks to today's agreement, Ukrainian producers will be able to export a significantly broader range of goods to EFTA countries either duty-free or at reduced tariff rates – something that is especially important during these challenging times. Most importantly, the modernized agreement lays a solid foundation for the further development of economic cooperation between Ukraine and EFTA countries," Svyrydenko said at the signing event.
Myrseth emphasized in her remarks that the agreement is an important step toward deepening Ukraine's integration into the European market.
Compared to the original 2010 version, the updated agreement expands market access for Ukrainian exporters and removes tariffs on industrial goods.
The agricultural section of the agreement also significantly expands trade opportunities. For Iceland, full tariff elimination applies to 142 items (including vegetables, wheat, food products, etc.), with partial reductions for five additional goods. The number of duty-free items increased by 9.8%, while those with partial reductions grew 3.5 times compared to the 2010 agreement.
For Norway, full tariff elimination covers 107 goods (including vegetables, edible root crops, fresh, cooked or preserved berries and nuts, oils, and juices), with partial reductions for 78 Ukrainian products (including yogurt, butter and spreads, eggs, vegetables, preserved fruits, and nuts). The number of duty-free goods increased by 11.4%, and those with partial reductions rose by 2.7%.
Switzerland and Liechtenstein abolished tariffs on 427 items (including pork, milk, cheese, honey, vegetables, fruits and berries, flour, animal and vegetable oils, canned meat, and fruits), with partial tariff reductions on 163 goods (including live animals, beef, pork, poultry, dairy products, eggs, beans, vegetables, and berries). In total, the number of duty-free goods for both countries grew by 66.2%.
In addition, the agreement formalizes a 0% tariff rate for a number of items that were previously excluded from the scope of the 2010 deal.
The modernized agreement also includes several new chapters. One focuses on e-commerce – aiming to streamline online trade, regulate electronic signatures and contracts, and promote paperless administration. Another targets small and medium-sized enterprises (SMEs), increasing access to information and mandating the publication of trade and commercial information on websites, including in English. There is also a chapter on trade and sustainable development.
Revisions have also been made to the provisions on trade in goods, sanitary and phytosanitary measures, trade facilitation and transparency, public procurement, and intellectual property protection.
"The agreement will also support innovation through enhanced intellectual property rights protections. As we can all agree, innovation is the main engine of progress and value creation in the modern world, as well as a key element of our joint efforts to boost profitability, improve living standards, and strengthen economic resilience. In addition to the new trade and product opportunities, I look forward to closer cooperation between businesses and people, especially in the knowledge sector," said Einarsson.
The European Free Trade Association is an intergovernmental organization established in 1960 to promote free trade and economic integration among its member states and global partners. Today, EFTA consists of Iceland, Liechtenstein, Norway, and Switzerland.
In 2024, trade turnover between Ukraine and EFTA countries (Iceland, Norway, Switzerland, and Liechtenstein) totaled nearly EUR 1.3 billion. Over the past five years, the average annual growth rate of Ukrainian exports to EFTA countries was 4.9%, while imports from EFTA to Ukraine grew by 9.3%.
Deputy Minister of Economy and Ukraine's Trade Representative Taras Kachka noted that the signing of the agreement, along with other tools, is expected to contribute to a 0.5% increase in Ukraine's GDP.
