On April 8, 2025, in Kyiv, Ukraine, the European Free Trade Association (EFTA) member states — Iceland, Liechtenstein, Norway, and Switzerland — officially signed a modernized Free Trade Agreement (FTA) with Ukraine.
The new agreement updates and replaces the existing 2012 EFTA–Ukraine FTA, which lacked several provisions compared to more recent EFTA trade agreements. Negotiations for modernization began in early 2024 and were successfully concluded in December 2024.
The modernized FTA aims to align with EFTA’s newer trade deals, expand coverage to additional sectors, and strengthen the overall trade relationship between the two parties.
Key Features of the Modernized FTA
Table of Contents
The updated agreement introduces new chapters on:
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E-commerce
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Small and Medium-sized Enterprises (SMEs)
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Trade and Sustainable Development
It also includes revised provisions on:
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Trade in goods
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Sanitary and phytosanitary measures (SPS)
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Trade facilitation
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Government procurement
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Intellectual property rights (IPR)
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Market access adjustments for greater trade liberalization in selected product categories
Once in force, the FTA will fully liberalize trade in industrial goods between EFTA member states and Ukraine.
For agricultural products, Switzerland will gain new market access opportunities for several agri-food items that were previously excluded from the 2012 agreement. As a result, 99.9% of Switzerland’s current agricultural exportsto Ukraine will benefit from preferential treatment under the new FTA.
Economic Impact and Trade Relations
The modernized FTA is expected to enhance Ukraine’s economic recovery and resilience, strengthen bilateral cooperation, and provide greater market access for enterprises on both sides.
Norwegian Minister of Trade, Cecilie Myrseth, serving as EFTA Chair, stated after the signing ceremony:
“EFTA member states are committed to supporting Ukraine at this crucial time, and this modernized FTA reaffirms that commitment. The agreement represents an important step toward deeper integration of Ukraine into the European market.”
Meanwhile, Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine, noted:
“The support we receive from EFTA countries is invaluable. We believe this modernized FTA will bring tangible benefits by fostering stronger cooperation, opening new opportunities for businesses, and improving living standards during this challenging period.”
Trade Figures Between EFTA and Ukraine
In 2024, bilateral trade between EFTA and Ukraine reached approximately €1.1 billion (USD 1.2 billion).
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EFTA exports to Ukraine: €782 million
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EFTA imports from Ukraine: €241 million
Over the past five years, EFTA’s trade with Ukraine has grown steadily:
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Imports from Ukraine: +4.9% average annual growth
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Exports to Ukraine: +9.3% average annual growth
Main Imports from Ukraine (to EFTA):
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Oils and fats (€37 million)
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Precious stones and metals (€26 million)
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Textiles and clothing accessories (€22 million)
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Furniture (€20 million)
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Beverages and spirits (€20 million)
Main Exports from EFTA (to Ukraine):
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Fish and seafood (€229 million)
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Pharmaceuticals (€143 million)
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Arms and ammunition (€77 million)
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Vehicles (€77 million)
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Electrical machinery and equipment (€44 million)
Ukraine also remains an important trade and development partner for Switzerland in Eastern Europe.
Bilateral trade grew steadily after the 2012 FTA took effect, reaching over USD 800 million in 2021 before the onset of the Russia–Ukraine conflict in February 2022.
Next Steps
The modernized FTA will enter into force after completion of domestic ratification procedures in all participating countries.
This landmark agreement reaffirms EFTA’s support for Ukraine’s economic stability, trade integration, and long-term recovery, paving the way for deeper cooperation in the years ahead.