Canada

Canada and Ukraine sign Free Trade Agreement


Published

Canada and Ukraine signed a Free Trade Agreement (FTA), the Canada-Ukraine Free Trade Agreement (CUFTA), yesterday.

The text of the press release published on the Canadian prime minister’s website is as follows:

“Canada signs Landmark Free Trade Agreement with Ukraine

Kyiv, Ukraine ‑

11 July 2016

The Government of Canada remains committed to working with Ukrainian government and business leaders to deepen the commercial ties between our countries and create jobs, strengthen the middle class, and grow our economies.

Today, Prime Minister Trudeau, Ukraine’s President Poroshenko and Prime Minister Groysman witnessed the signing of the milestone Canada-Ukraine Free Trade Agreement (CUFTA), which will open our markets to products, grow our communities, and give our citizens a higher standard of living.

The Agreement is part of Canada’s continued commitment to supporting Ukraine’s efforts to build a stable, democratic, and prosperous country.

Both Canada and Ukraine are committed to the timely ratification and implementation of CUFTA – so that Canadians and Ukrainians alike can take advantage of its benefits as soon as possible.

Quotes

“The Canada-Ukraine Free Trade Agreement represents a significant milestone in the relationship between Canada and Ukraine. It will bolster our economies, spur innovation, and lead to long term benefits for the middle class and those working hard to join it.”

– Rt. Hon. Justin Trudeau, Prime Minister of Canada

“Canada and Ukraine know that trade is essential to jobs and growth. By improving market access and creating more predictable conditions for trade, the Canada-Ukraine Free Trade Agreement will generate new opportunities for Canadians and Ukrainians alike.”

– The Hon. Chrystia Freeland, Minister of International Trade

Quick Facts

• In 2015, Canada and Ukraine announced the conclusion of the Canada-Ukraine Free Trade Agreement (CUFTA) negotiations.
• Canada’s International Trade Minister, Chrystia Freeland, and Ukraine’s First Vice Prime Minister and Minister of Economic Development and Trade, Stepan Kubiv, signed the Agreement in Kyiv during Prime Minister Trudeau’s first official visit to Ukraine.
• Ukraine offers numerous opportunities for Canadian businesses and investors, in areas such as information and communication technologies, agriculture, infrastructure and logistics, aerospace, defence and security, and energy.
• In 2015, bilateral trade between Canada and Ukraine increased by 13.9 per cent over 2014, totalling almost $278 million. Canada’s exports to Ukraine totalled over $210 million in 2015. Examples of products imported by Ukraine include pharmaceuticals, fish and seafood, and coking coal.
• Canada’s merchandise imports from Ukraine totalled more than $67 million in 2015. Major imports included fertilizers, iron and steel, and anthracite coal.
• Now that the Agreement has been signed, Canada and Ukraine will go through their respective domestic legislative processes to ratify and implement the Agreement.”

The text of the press release on the Ukrainian government website is as follows:

“Ukraine and Canada signed a Free Trade Agreement

11.07.2016 | 13:16

Information and Communication Department of the Secretariat of the CMU

First Vice Prime Minister, Minister of Economic Development and Trade of Ukraine Stepan Kubiv and International Trade Minister of Canada Chrystia Freeland have signed a Free Trade Agreement between Canada and Ukraine.

Signing of the Agreement has been held on Monday in Kyiv in the presence of President of Ukraine Petro Poroshenko, Prime Minister of Ukraine Volodymyr Groysman and Prime Minister of Canada Justin Trudeau.

According to the Ministry of Economic Development and Trade, since 2009 the Governments of Canada and Ukraine have been negotiating to liberalize bilateral trade, and last year the negotiating team of the Government of Ukraine headed by Deputy Minister of Economic Development and Trade, Trade Representative of Ukraine Nataliya Mykolska managed to get things done. After six rounds of talks on July 14, 2015 negotiations were completed and the text of the Agreement was initialled. After signing for the entry into force the Agreement also requires ratification by the parliaments of both countries.

“The Agreement with Canada is the first agreement with a country of the North American region, covering the market of this magnitude,” pointed out First Vice Prime Minister of Ukraine Stepan Kubiv, “Agreement with Canada is an additional factor to include Ukraine in the global chain of goods production with added value in the context of the conclusion of the future FTA between Canada and the EU.”

The main content of the Agreement includes provisions concerning trade in goods, rules of origin, trade facilitation, labour, technical barriers to trade, government procurement, intellectual property, dispute settlement, environment, sanitary and phytosanitary measures.

The Agreement will diversify trade flows from Ukraine and attract Canadian investment in Ukraine. As Canada opens its market for Ukrainian goods at 99%, Ukrainian business can take advantage of duty-free access to the new market. According to the Agreement, Ukrainian entrepreneurs receive support in entering the Canadian market, including through project CUTIS (Canada – Ukraine Trade and Investment Support project).”

You can find out much more about the FTA, including the full text here.

More detailed briefing on the politics and risk of doing business in this country is available to clients and subscribers. If you would like to know more then please contact enquiries@tradebridgeconsultants.com