Australia removes tariffs on Ukrainian imports for a year to help Kyiv recover its economy

In a significant development, the Australian government has decided to remove tariffs on imports from Ukraine for one year. According to the Australian government, the decision has been taken in an attempt to boost the economy of the war-ravaged country. The measure, which is a component of the support package promised by Australian Prime Minister Anthony Albanese after his visit to Kyiv, came into force on Monday, July 4.

"It follows similar actions by our international partners, such as the European Union, and the United Kingdom," Australia's Trade and Tourism minister, Don Farrell stated in a press release. 

Farrell further stated that the abolition of tariffs is a vital part of the Australian government's continuous efforts to strengthen its bilateral trade and investment relationship with Ukraine. According to him, Ukraine's recovery and reconstruction depend heavily on these kinds of measures taken by Australia and other foreign allies to help its economy and increase trade possibilities. Farrell further said that nearly $122 million worth of Ukrainian goods were imported into Australia in 2021.

The measure would reduce tariffs up to 5% to zero on Ukrainian goods

According to the Australian minister, this measure would reduce the tariffs up to 5% to zero for a year on a variety of products manufactured in Ukraine. However, excise-equivalent taxes, such as those imposed on gasoline, alcoholic beverages, and tobacco products, will continue to be in effect.

"Australia condemns Russia's unilateral, illegal and immoral aggression against the people of Ukraine. This measure demonstrates our commitment to support the economy of Ukraine as it deals with the ongoing, devastating effects of Russia's invasion," Farrell remarked, as per the release. 

Australia to provide new aid package to Ukraine

It is worth mentioning here that Australian Prime Minister Anthony Albanese visited Kyiv on July 3 and expressed his support to Ukrainian President Volodymyr Zelenskyy. The Australian PM also decided to provide a new aid package to the war-torn country following a request by Zelenskyy.

Earlier in March, Australia also imposed an additional tariff of 35% on all imports from Russia and Belarus. In addition, the Australian government has also imposed sanctions on more than 500 individuals and entities since Russia launched a full-fledged war in Ukraine on February 24. 

(Image: AP)