EU may cancel all tariffs, quotas on Ukrainian exports

Europe is looking at ways to bolster Ukraine’s war-torn economy with steps including the elimination of tariffs and trade quotas on key Ukrainian shipments like steel, Report informs referring to Bloomberg.

This week the European Union is considering removing all remaining duties and quota requirements on Ukrainian exports, according to people familiar with the matter. An announcement could come as early as this week.

Lowering Europe’s trade barriers would be significant because the EU is already Ukraine’s largest trading partner and accounted for some 24 billion euros ($25.5 billion) worth of Ukrainian exports before Russia’s invasion.

While the war has caused half of Ukrainian businesses to shut down completely, it could make it easier for the remainder to sell their goods to the European marketplace.

Ukraine is the world’s 13th-largest steel producer, and its metal and related sectors account for 12% of Ukraine’s gross domestic product, with 80% of production typically exported.

While Ukraine only accounts for a 2.2% sliver of the global steel market, according to a recent WTO report, that percentage could grow if Ukraine can displace Russian metal exports that are now restricted in the US, EU, Japan and other key nations.