Ukraine expects big benefits from free trade pact with EU

The Ukraine government said on Wednesday it expects to reap big benefits from a free trade agreement with the European Union (EU) expected to be signed in November this year. According to a statement posted on the website of the Economic Development and Trade Ministry, the potential savings and gains could reach 624 million U.S. dollars annually. Ukrainian agricultural and chemical companies would benefit the most, earning an additional 490 million dollars and 31 million dollars per year, respectively, the statement said. The pact would also provide a powerful spur for foreign investment into the East European country, it said. First considered in 2008, the idea of free trade deal between Ukraine and the EU gained momentum in May last year, when Kiev and Brussels initiated a political association agreement giving Ukraine access to the European free trade area, which includes the EU and non-EU nations such as Norway and Switzerland. When the deal comes into force, it will remove tariffs on around 90 percent of the goods traded between Ukraine and the 28-member block. It is also expected to eliminate duties on other goods in the medium term.