**Ukraine Seeks Free Trade Deal with US, Aiming to Boost Bilateral Trade**
In a move aimed at boosting bilateral trade and strengthening economic ties, Ukrainian President Volodymyr Zelensky has proposed a free trade agreement between Ukraine and the United States. This announcement was made by Taras Kachka, Deputy Economy Minister and Trade Representative, on May 20.
According to Kachka, President Zelensky offered the proposal in a letter to US President Donald Trump, alongside highlighting other opportunities for cooperation in trade and defense industry. The Ukrainian government views this agreement as a crucial step forward in their ongoing conversations with the US.
**Why is Ukraine interested in a free trade deal with the US?**
Kyiv’s interest in a free trade agreement with Washington comes at a time when bilateral trade has actually declined in recent years. While Ukraine exports relatively small amounts to the US, valued at $874 million last year, Kachka emphasized that Kyiv seeks to establish similar agreements with all G7 countries. This includes Britain, Canada, and the European Union, as well as Japan.
**The importance of free trade for Ukraine**
Ukraine’s push for a free trade agreement with the US comes amid concerns about potential global trade tensions. In early April, President Trump imposed a 10% tariff on most Ukrainian goods, excluding metal products which had already been subject to a 25% tariff in March. This move has raised fears of a global trade war that could have far-reaching consequences for Ukraine.
**Commentary**
The proposed free trade agreement between Ukraine and the US is a significant development, given the current trade tensions between the two countries. As Oleksandra Myronenko from the Center for Economic Strategy (CES) in Kyiv noted earlier this month, Ukraine’s trade with the US has declined in recent years. However, by seeking a free trade deal, Kyiv aims to boost bilateral trade and strengthen economic ties with its largest trading partner.
**What are the implications of a potential free trade agreement?**
A successful negotiation would open up new markets for Ukrainian exporters and create opportunities for American businesses to invest in Ukraine’s economy. This could lead to increased economic activity, job creation, and potentially higher living standards for Ukrainians. The agreement would also need to address specific areas of interest, such as defense industry cooperation.
**Conclusion**
Ukraine’s push for a free trade agreement with the US reflects its desire to establish stronger economic ties with major trading partners. By seeking to create new opportunities for bilateral trade, Kyiv aims to boost economic growth and stability in a challenging global environment. As the negotiations progress, it will be crucial to address specific areas of interest and potential trade-offs.
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