Turkey and Ukraine’s free trade agreement (FTA) entered into force on October 1, establishing a framework for more predictable bilateral trade and targeting a trade volume of USD 10 bln in the short term, according to Turkey’s Trade Ministry.
Customs duty provisions for trade in goods will take effect on January 1, 2027. The agreement also covers services, investment, e-commerce, trade facilitation and customs cooperation, while providing for quota-free bilateral and transit transportation.
For Turkey’s steel industry, the agreement could improve access to the Ukrainian market, particularly as Ukraine’s damaged steelmaking capacity and reconstruction needs continue to support demand for imported steel. Turkish producers are geographically well positioned to supply the market.
Steel trade between the two countries has shifted significantly since the start of the war. Ukraine was previously an important supplier of steel and raw materials to Turkey, while Turkish steel exports to Ukraine were relatively limited. More recently, Turkish steel shipments to Ukraine have increased as Ukrainian domestic production capacity has been disrupted.