Export duty on scrap metal from Ukraine to Türkiye to remain even after possible Free Trade Agreement ratification – MP
The EUR 180/tonne export duty on scrap metal from Ukraine to Türkiye will remain in place even if the Free Trade Agreement (FTA) between the two countries is ratified, according to Dmytro Kysylevsky, Deputy Chairman of the Verkhovna Rada Committee on Economic Development.
Following a working meeting on March 28, which included representatives from the metallurgical industry, government officials, and MPs, the committee discussed the impact of the FTA on Ukraine's steel industry. The primary focus was on preserving the existing export duty on scrap metal, given Türkiye's long-standing role as a major importer of Ukrainian raw materials.
"Currently, the EUR 180 duty applies to all countries except the EU, and this will continue for Türkiye even after the agreement is signed. The relevant provisions are embedded in the agreement. Ukraine's trade representative, Deputy Minister of Economy Taras Kachka, confirmed this position," Kysylevsky stated.
He emphasized that an official clarification will be issued, particularly for customs authorities, who have previously acted contrary to their mandate to support state revenue.
Kysylevsky also criticized a 2023 decision by the State Customs Service, which applied a reduced EUR 10 duty instead of EUR 180 on exports to Moldova. He noted that Moldova's only scrap metal consumer is located in Transnistria, questioning the rationale behind lowering the duty. He urged law enforcement to investigate this matter as it not only harms Ukraine's budget but could also be considered aiding an adversary.
Another key issue raised was the circumvention of the duty through EU transit routes. In 2023, nearly 300,000 tonnes of ferrous scrap were exported from Ukraine to the EU at a zero-duty rate, with the majority later rerouted to Türkiye and other countries, avoiding the EUR 180/tonne tariff. This resulted in an estimated UAH 2 billion in lost state revenue.
"Had this scrap been processed in Ukraine, it would have generated greater added value, increased tax revenues, and strengthened defense funding for Ukraine's military," Kysylevsky stressed. He called for consultations with European partners on tracking the final destination of raw materials to prevent further leakage of Ukraine's strategic resources.
Ukraine's Deputy Minister of Economy, Taras Kachka, has previously stated that ratifying the FTA with Türkiye and modernizing trade agreements with the EFTA are among the key economic goals for 2025. However, representatives from Ukraine's light industry sector have urged postponing the FTA ratification with Türkiye until after the war, citing concerns about competition from Turkish manufacturers.
Ukraine and Türkiye concluded 12 rounds of negotiations between 2011 and 2022, culminating in the signing of the FTA by Ukrainian Prime Minister Denys Shmyhal and Turkish Minister of Trade Mehmet Muş in February 2022. The agreement will take effect once it is ratified by both parliaments and the necessary diplomatic formalities are completed.
However, due to changes in Ukraine's economic landscape, ongoing discussions with Türkiye are focused on implementing transition periods for certain industries, particularly light manufacturing.