How Trump broke global trade rules and what Ukraine should do
Donald Trump has fulfiled his promise by imposing tariffs on imports from Canada, Mexico and China. Next in line are tariffs on goods from the European Union.
This decision has disrupted international trade.
Read more about what Ukraine should do, both its government and businesses, in response in the op-ed by Taras Kachka, Ukraine's Deputy Minister of Economy of Ukraine and Trade Representative – Donald Trump is changing global trade rules. What should Ukraine do?
According to the author, a major challenge will be the wave of global measures aimed at adjusting trade flows. He emphasises that the key focus should now be on maintaining and developing relationships while eliminating tariffs with Ukraine’s closest trading partners.
"Our trade is Euro-Mediterranean – 76.8% of our exports in 2024 went to this region. The countries in this region follow the PanEuroMed rules of origin, which allow for duty-free supply chains based on the EUR.1 certificate," Kachka explains.
To support and develop trade relations, the following steps should be taken:
1. Further integration into the EU internal market.
Ukraine’s goal this year is to at least maintain existing trade conditions with the EU, especially for sensitive agricultural products.
There are no customs barriers for industry. This year, trade in industrial goods (under the ACAA agreement, also known as "industrial visa-free access") will effectively operate under the EU's free movement of goods regime.
2. Ratifying the free trade agreement with Türkiye.
The key objective is to integrate Türkiye into Ukraine’s PanEuroMed framework. Once the free trade zone agreement with Türkiye is ratified, Turkish raw materials will serve as the basis for value-added products exported to the EU.
"It sounds like a dream, but just ask any textile manufacturer," Kachka notes.
3. Modernising the Free Trade Agreement with the European Free Trade Association (EFTA)
In the first half of the year, the agreement will be signed by the economy ministers of Ukraine, Norway, Switzerland, Iceland and Liechtenstein.
These highly integrated EU markets are a dream destination for many Ukrainian producers.
4. Signing Free Trade Agreements with other PanEuroMed countries
Negotiations are ongoing with Egypt (2024 exports: $1.6 billion), Lebanon ($412 million), Tunisia ($330 million), Algeria ($314 million), and others.
"The volume of trade is not as crucial here as the potential to establish production chains," the expert explains.
Kachka also highlights the importance of fostering relations with countries that prioritise trade development, such as Canada, the UK and the UAE. Despite their differing trade styles, these nations are key trading hubs in their respective regions.
Ukraine has also signed digital trade agreements with these countries.
"We will continue expanding this network, along with agreements on mutual investment protection," writes Ukraine’s Trade Representative.
Such agreements, whether on digital trade or investment protection, must safeguard Ukraine’s interests across all sectors of the global economy.
Ukraine will continue to advocate for its rights at the World Trade Organization (WTO).
Overall, the expert believes that, for now, Ukraine should focus on bilateral relations with key partners while actively using tools to protect domestic producers, such as trade defence measures, administrative regulations, and, when necessary, raising tariffs and restricting imports.
However, all these efforts must align with Ukraine’s industrial policy, "Made in Ukraine."
Finally, the author notes that trade agreements in the future will likely need to include security guarantees. This could very well be the framework for Ukraine’s future agreement with the United States.