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EFTA and Ukraine sign updated free trade agreement

EFTA and Kiev step up economic exchanges
The Swiss government’s delegate for Ukraine, Jacques Gerber, represented Bern at the signing of the EFTA-Ukraine FTA. Keystone-SDA

The European Free Trade Association (EFTA), of which Switzerland is a member, and Ukraine signed an updated free trade agreement in Kyiv on Tuesday. This should help facilitate exports to the war-torn country.

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The Swiss government’s delegate for Ukraine, Jacques Gerber, represented Bern at the signing.

“Modernising the free trade agreement (FTA) with Ukraine has been a priority for Switzerland,” Gerber told the Keystone-ATS news agency; The Swiss official travelled to Ukraine with a delegation from the private sector. Gerber described it as “a further step to support Ukraine as much as possible in the current geopolitical context”.

He signed the document alongside Ukrainian Deputy Prime Minister Yulia Svyrydenko and representatives from the other EFTA member states, which include Iceland, Liechtenstein and Norway.

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The FTA between EFTA and Ukraine, which has been in force since 2012, had shortcomings in several areas, said the economics ministry in a press release. The latest version will allow Swiss exporters to benefit from concessions for almost all agricultural products.

‘Fully liberalised’ trade

Trade in industrial products between EFTA and Ukraine will be “fully liberalised” as soon as the new agreement enters into force. This is scheduled to take place once the internal approval processes have been completed, said the Swiss ministry.

The FTA underlines the importance of Ukraine as a partner for Switzerland. Trade in goods between the two countries grew steadily between 2012 and the start of the Russian invasion in 2022, reaching a volume of more than CHF800 million ($933 million) in 2021.

+ Read more: who benefits from FTAs with Switzerland?

Switzerland said it was continuing “its successful free trade policy and strengthening the competitiveness of its economy” with this updated FTA. The country has made progress on several agreements in recent months. For example, parliament recently approved an agreement between EFTA and India.

However, Bern is facing economic pressure from the United States. Last week, US President Donald Trump announced tariffs of 31% on Swiss imported goods. State Secretary for Economic Affairs Helene Budliger Artieda is currently in Washington to defend Swiss interests.

Translated from French by DeepL/sb

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