Ukraine seeks trade pact with US following reconstruction fund talks

Ukraine is pursuing a free trade agreement with the United States, aiming to expand its access to key Western markets as part of a broader strategy to integrate more deeply into the global economy.

The initiative was disclosed by Ukraine’s Trade Representative and Deputy Economy Minister Taras Kachka during the “Trade Wars: The Art of Defence” conference, where he confirmed that President Volodymyr Zelenskyy had proposed the deal in a formal letter to US President Donald Trump, Caliber.Az reports, citing Ukrainian media.

Although the United States is not Ukraine’s largest trading partner, Kyiv views a trade pact with Washington as a strategic priority. Ukraine already holds trade agreements with the United Kingdom, Canada, and the European Union, and now seeks to secure similar arrangements with the US and Japan. According to Kachka, Ukrainian manufacturers increasingly recognise the value of targeting wealthier, more developed markets with higher product standards, which in turn provide greater profit margins and added value.

This shift in export strategy underscores the government’s desire to emphasise the importance of entering the US market under preferential trade terms. Kachka noted that the ongoing talks between Kyiv and Washington about establishing a joint investment fund for Ukraine’s reconstruction could serve as a foundation for negotiating a free trade agreement. While Ukraine believes such a deal could be of interest to the US, officials acknowledge that the process remains in its early stages.

On the issue of trade barriers, Ukraine is also raising concerns about US tariffs, including the 10% duties currently applied to certain Ukrainian goods. However, Kachka indicated that these tariffs are not the primary focus of current negotiations, which have so far centred on the proposed investment fund. Discussions on tariffs are expected to take place later this week in talks with US Ambassador and Trade Representative Jamieson Greer.

Kachka also addressed the broader context of US trade policy, describing recent American tariff actions as part of a “new reality” in international commerce. For Ukraine, one key concern is the removal of duties on metallurgical products, which constitute a major portion of Ukrainian exports to Europe. Nonetheless, he cautioned that negotiations are still at an initial phase, with the government’s main efforts to date focused on establishing the reconstruction fund.

In a related development, Ukraine and the United States recently signed an agreement on natural resources. While details of the agreement were not disclosed, Ukrainian officials emphasised that full control over the country’s subsoil and mineral assets will remain with Kyiv. According to reporting by The Wall Street Journal, the agreement aligns with the national interests of both countries and reflects a shift in Washington’s posture toward Ukraine and Russia, driven by a growing economic stake in Ukraine’s future.

By Tamilla Hasanova