Govt approves bill on ratification of Comprehensive Economic Partnership Agreement between Ukraine, UAE

The Cabinet of Ministers at a meeting on Tuesday approved the draft law on the ratification of the Comprehensive Economic Partnership Agreement between the Government of Ukraine and the Government of the United Arab Emirates (UAE), the press service of the Ministry of Economy reported.

It is explained that the agreement provides for the establishment of a free trade regime between Ukraine and the UAE by liberalizing access to the markets of goods and services for both countries. For Ukrainian goods, full liberalization of access to the UAE market has been ensured.

"The Comprehensive Economic Partnership Agreement improves opportunities for Ukrainian business in the global market, as the UAE is an important economic, trade and financial hub in the Middle East. The implementation of the agreement, which covers virtually the entire product range of bilateral trade, will contribute to the growth of production and exports of Ukrainian products by reducing tariff barriers in trade between countries. We hope for the support of MPs in approving this bill," the message quotes the words of First Deputy Prime Minister - Minister of Economy of Ukraine Yulia Svyrydenko.

The Ministry of Economy emphasized that this decision is another stage for Ukraine to complete domestic procedures for the entry into force of this agreement. The next step is to send the draft law for ratification by the Rada.

Thanks to the agreement, Ukrainian exports are expected to grow in key sectors: metallurgy, food industry, in particular flour milling and oil production. The ministry also predicts an increase in exports of metals and vegetable oil.

In addition, the UAE has lifted the 49% foreign capital limit for Ukraine, which will allow entrepreneurs to register companies with foreign capital up to 70%, and in certain sectors - gradually up to 100% (in particular, in the field of commercial services, construction, education, healthcare and accounting). At the same time, in free economic areas, Ukrainian companies will be able to own 100% of the business, which is an important step for the development of Ukrainian business in this region.

According to the ministry, the agreement opens up new opportunities for digital trade: tariffs on digital and electronic data transmission, including electronic content, have been abolished, obligations have been established regarding digital payments, personal data protection and the creation of transparent rules for business, which will develop the digital economy and cross-border trade.

However, the document will not be extended to the territories that are an integral part of Ukraine, but still remain under foreign occupation until Ukraine restores full and effective control over them.

The agreement enters into force 60 days after the date of receipt of the last written diplomatic note, by which the parties notify each other of the completion of internal procedures necessary for the entry into force of the document.

The ministry recalled that Ukraine and the UAE concluded an Agreement on Comprehensive Economic Partnership between the governments of the two countries on February 17, 2025 in Abu Dhabi. The signing took place with the participation of President of Ukraine Volodymyr Zelensky,y on the Ukrainian side it was signed by Svyrydenko, on the UAE side - by Minister of International Trade Thani bin Ahmed Al Zeyoudi. This is the first agreement in the history of Ukraine with the countries of the Persian Gulf.