The Australian Government will extend tariff relief on Ukrainian goods by another two years to support the war-torn nation in its efforts against Russia’s invasion.
Treasurer Jim Chalmers and Trade Minister Don Farrell announced in a joint media release on Friday the duty exemption will remain effective until 03 July 2026 for goods produced and manufactured in Ukraine.
The measure results in tariffs of up to 5% reduced to zero on Ukrainian goods.
The tariff relief is one part of Australia’s package of defence, economic and humanitarian assistance to Ukraine. Australia’s overall support to Ukraine is valued at approximately $960 million, including $780 million in assistance for Ukraine’s Armed Forces.
The Treasurer met with Ukranian Finance Minister Marchenko as part of a series of meetings with international counterparts for the G20 Finance Ministers’ and Central Bank Governors’ Meeting and the IMF – World Bank 2024 Spring Meetings. The finance and global economic outlook meetings were held in Washington DC.
The Treasurer told his Ukranian counterpart Mr Marchenko that the tariff relief was a demonstration of Australia’s continued and unwavering support for Ukraine.
“Australia is committed to supporting Ukraine’s economy and its continued participation in international trade as it deals with the ongoing, devastating effects of Russia’s invasion,” the statement from Mr Chalmers and Mr Farrell reads.
“The tariff relief is one part of Australia’s package of defence, economic and humanitarian assistance to Ukraine.”
Australia’s trade relationship with Ukraine has traditionally been modest, but has increased over the past two years.
Export of goods from Ukraine to Australia reached US$60.9 million (43% increase), and imports at US$ 154.3 million (increased by three times), according to the Ukrainian Embassy figures.
Major import commodities from Ukraine included edible oils, metallurgy and machinery, floating vessels, fertilisers and tobacco.
Australia’s exports to Ukraine included coal, pharmaceutics, machinery, optics, jewellery, cartons and paper.
In 2022 the Australian government increased tariffs on imports from Russia, in response to its invasion of Ukraine. Of course, that did not benefit Ukraine, but the latest measures being put in place will serve to support their economy and expand trade opportunities that are vital to their recovery and reconstruction in the short and long term.
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