**Ukraine and US Agree to Start Working on Free Trade Zone**
In a major development, Ukraine and the United States have agreed to start working on a free trade zone between the two countries. This was announced by Ukrainian Prime Minister Denys Shmyhal after meeting with U.S. Treasury Secretary Scott Bessent in Washington on April 23.
This move is significant as it marks a step forward in the long-standing talks between Ukraine and the US on a free trade zone. The negotiations began in 2021, with Kyiv seeking to boost bilateral trade and an agreement that would allow “everything except for the fixed exceptions.” However, trade between the two countries has been declining in recent years, with only $874 million of exports and $3.4 billion of American imports last year.
**A Global Trade War Looms**
The knock-on effect of a global trade war could be devastating for Ukraine, according to Oleksandra Myronenko from the Center for Economic Strategy (CES) in Kyiv. She told the Kyiv Independent that Trump’s tariffs on Ukrainian goods, imposed earlier this month, could have far-reaching consequences.
**Ukrainian Prime Minister Shmyhal Meets with US Treasury Secretary**
During his meeting with Bessent, Shmyhal also discussed “important political aspects” of the long-debated future minerals deal between Kyiv and Washington. The parties reaffirmed their commitment to the agreement in a recently signed memorandum.
Shmyhal also called on the U.S. to strengthen energy sanctions against Russia due to the occupation of the Zaporizhzhia Nuclear Power Plant. This move comes as the Trump administration is reportedly debating the lifting of sanctions on Russia’s Nord Stream 2 gas pipeline and other Russian energy assets in Europe.
**What Does this Mean for Ukraine?**
The agreement to start working on a free trade zone between Ukraine and the US is a significant step forward for both countries. It has the potential to boost bilateral trade, create jobs, and stimulate economic growth in Ukraine. However, it also highlights the risks of a global trade war that could have far-reaching consequences for Ukraine’s economy.
The kyivindependent.com reported that the parties are expected to provide further details on the ongoing negotiations by April 26.
Read More @ kyivindependent.com
