Work will be undertaken to determine the economic expediency of free trade agreements with other important trading partners in Ukraine. With the completion of scientific studies, we are trying to define the countries of perspective for the conclusion of free trade agreements through consultations with professional associations and Ukraine`s major producers and exporters. Joel Lion, Israel`s ambassador to Ukraine, said the agreement is expected to increase trade revenue between countries by 15% over the next five years to about $1 billion. The free trade agreement between the Government of Ukraine and the Government of Montenegro was signed in Kiev on 18 November 2011 and ratified by Ukrainian Law No. 5445-VI of 16 October 2012; Effective January 1, 2013. This agreement deals with trade in goods, services and dispute resolution. In accordance with the provisions of the agreement after it enters into force, Montenegro provides for the abolition of import duties. In order to avoid possible negative consequences for Ukraine`s economy, the Ukrainian side has excluded, as part of the agreement, a number of sensitive groups of agricultural products from the free trade area. Ukraine`s right to apply export duties, in accordance with existing WTO obligations, is also maintained. The agreement will strengthen economic relations between the two countries by removing most import tariffs. In 2013, it became clear that Ukraine had a complementary economy. As a relatively low commodity-poor country, Israel has become a major exporter of processed goods, based on foreign inputs.
Major exports (beyond services) include plastics, rubber and machinery. Ukraine, on the other hand, has an abundance of natural resources and is a net exporter of industrial and agricultural products. The free trade agreement between Ukraine and Israel should focus on trade in goods and the removal (or elimination) of customs barriers. Earlier this year, on 21 January 2019, Ukraine and Israel signed a long-awaited free trade agreement. Negotiations began in 2013 at the height of Israeli “cotton cheese” protests – the outcry from civil society in the government to combat the rapidly rising cost of living – and are likely to culminate next year if ratified by the Israeli executive. On 21 January 2019, Ukraine and Israel formally concluded a free trade agreement. The final agreement, which culminated in seven years of negotiations, was signed by Stepan Kubiv, Ukraine`s Minister of Economic Development and Trade, and Eli Cohen, Israel`s Minister of Economy and Industry. The conclusion of the FTA provides favourable conditions for trade development and economic cooperation with certain states or groups of states and is therefore an effective instrument to increase the volume of Ukrainian exports by liberalizing access to foreign markets for goods and services.