Ukraine and the member states of the European Free Trade Association (EFTA) – Iceland, Liechtenstein, Norway, and Switzerland – have concluded a modernised Free Trade Agreement (FTA). The document was signed on 8 April 2025 in Kyiv by Ukraine’s First Deputy Prime Minister and Minister of Economy Yuliia Svyrydenko, Norway’s Minister of Trade and Industry Cecilie Myrseth, Iceland’s Minister of Culture, Innovation and Higher Education Logi Einarsson, Liechtenstein’s Ambassador Frank Büchel, and Switzerland’s Ambassador and Federal Council Delegate for Ukraine Jacques Gerber.

“The support Ukraine has received from EFTA states is invaluable. We are confident that this modernised Free Trade Agreement will bring tangible benefits to both Ukraine and the EFTA states, fostering even closer cooperation and opening new opportunities for businesses. Thanks to the document signed today, Ukrainian producers will be able to export a significantly wider range of goods to European Free Trade Association countries duty-free or at reduced rates, which is crucial for us in these challenging times. Most importantly, the modernised Agreement lays a solid foundation for further developing economic cooperation between Ukraine and EFTA countries,” said First Deputy Prime Minister and Minister of Economy Yuliia Svyrydenko.

According to Cecilie Myrseth, EFTA Chair and Norway’s Minister of Trade and Industry, the EFTA member states are committed to supporting Ukraine during this critical time, and this modernised Free Trade Agreement reaffirms that commitment. The new agreement is an important step towards strengthening Ukraine’s integration into the European market.

The existing free trade agreement between Ukraine and the EFTA states was signed in June 2010.

The modernised agreement will support Ukraine’s recovery and economic growth, strengthen ties between Ukraine and EFTA states, and benefit economic operators across various sectors.

What benefits does the new agreement offer Ukrainian producers?

• The agreement expands access to EFTA markets.

• Above all, duties on industrial products have been completely eliminated.

• In the agricultural section of the agreement with EFTA countries, duties are abolished or reduced on a significant number of agricultural goods. Specifically:

Iceland:

• Full duty elimination – on 142 goods (vegetables, wheat, food products, etc.);

• Partial duty reduction – on 5 goods.

• The number of duty-free goods increased by 9.8%, and those with partial reductions rose 3.5 times (compared to the 2010 agreement).

Norway:

• Full duty elimination – on 107 goods (vegetables, edible roots, fresh, cooked, or preserved berries and nuts, oils, juices, etc.);

• Partial duty reduction – on 78 goods (yoghurt, butter and spreads, eggs, vegetables, preserved fruits and nuts, etc.).

• The number of duty-free goods increased by 11.4%, and those with partial reductions grew by 2.7% (compared to the 2010 agreement).

Switzerland and Liechtenstein:

• Full duty elimination – on 427 goods (pork, milk, cheeses, honey, vegetables, fruits and berries, flour, animal and vegetable oils, preserved meat, fruits, etc.);

• Partial duty reduction – on 163 goods (live animals, beef, pork, other livestock, poultry, dairy products, eggs, beans, vegetables, berries, etc.).

Overall, the number of duty-free goods increased by 66.2%.

Additionally, the Agreement locks in the current 0% rates for a range of goods previously excluded from its scope.

What new sections does the agreement include?

• E-commerce – simplifying online trade, regulating electronic signatures and contracts, administering paperless trade, etc.

• Small and Medium Enterprises (SMEs) – improving SME access to information, mandating the publication of trade and other commercial information on websites, including in English, and fostering cooperation through dedicated SME contact points, etc.

• Trade and Sustainable Development – ensuring trade relations contribute to sustainable development.

Which provisions have been revised?

• Trade in Goods, Sanitary and Phytosanitary Measures – measures and provisions on technical barriers will be applied based on relevant WTO agreements.

• Trade Facilitation – clear rules for exporters, greater transparency in import licensing procedures, etc.

• Public Procurement – simplifying suppliers’ access to public procurement markets.

• Cooperation and Intellectual Property Protection.

Following the bilateral Ukraine-EFTA meeting, the parties agreed on a joint communiqué.

For reference

The European Free Trade Association (EFTA) is an intergovernmental organisation established in 1960 to promote free trade and economic integration among its members and their partners worldwide. Today, EFTA’s members are Iceland, Liechtenstein, Norway, and Switzerland.

In 2024, trade turnover between Ukraine and EFTA countries (Iceland, Norway, Switzerland, Liechtenstein) amounted to nearly EUR 1.3 billion. Over the past five years, the average growth rate of Ukrainian exports to EFTA countries was 4.9%, while imports from EFTA countries to Ukraine grew at an average rate of 9.3%.

Main export items to Ukraine:

• Fish and seafood (EUR 229 million)

• Medicines and pharmaceutical products (EUR 143 million)

• Weapons and ammunition (EUR 77 million)

• Vehicles (EUR 77 million)

• Electrical equipment (EUR 44 million)

Main import items to EFTA states:

• Fats and oils (EUR 37 million)

• Precious stones and metals (EUR 26 million)

• Clothing and accessories (EUR 22 million)

• Furniture and mattresses (EUR 20 million)

Alcoholic and non-alcoholic beverages (EUR 20 million)