Atlantic Council this week released a new commentary arguing that the ratification of the Ukraine-Turkey free trade agreement creates a framework that could support Ukraine’s reconstruction, deepen integration into European supply chains, and strengthen a broader strategic partnership between Kyiv and Ankara.
The commentary states that for the deal to benefit Ukraine rather than simply deepening its reliance on commodity exports, it must generate foreign investment and value-added production inside Ukraine, with Turkish firms well positioned to contribute given their high tolerance for geopolitical risk.
Quote from the commentary:
The deal also has a broader European dimension by incorporating the revised pan-Euro-Mediterranean rules of origin. Ukrainian manufacturers will be able to import Turkish components, integrate them into local production, and still retain preferential tariff access when exporting the finished goods to the EU. This framework fills a missing regulatory link among the Ukrainian, Turkish, and EU markets. It integrates Ukraine more deeply into European supply chains ahead of EU membership while encouraging Turkish manufacturers to locate production in Ukraine as the country adopts European standards.
Read the full commentary: Ukraine-Turkey free trade agreement