Top ten facts about Canada-Ukraine Free Trade Agreement

Author : Natalia Mykolska

Source : 112 Ukraine

Canada-Ukraine Free Trade Agreement, which enters into force August 1, is the second free trade regime, which has come into force after the Revolution of Dignity
10:23, 2 August 2017

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The Canada-Ukraine Free Trade Agreement (CUFTA) enters force on August 1. This is the second free trade regime (after the EU), which has come into force after the Revolution of Dignity.

But the case with Canada is really special. After all, thanks to the active lobbying of the influential Ukrainian community in Canada, we have received more preferences and better conditions than we could have hoped for when negotiating with another country.

Related: Ukraine-Canada FTA is window of colossal opportunities for Ukrainian business, - Poroshenko

So, what should you know about CUFTA? Here are top 10 key facts about this agreement.

  1. Canada is among the top 20 markets in focus for Ukraine in the Export Strategy. According to the experts of the International Trade Center, the potential for increasing our exports is about $ 40 million.
  2. Canadian market is import oriented. In 2016, it amounted to 403 billion dollars. Canada is one of the world's leading importers per capita.

Thus, the volume of imports of Canada is three times greater that the amount of US imports per capita. It is a great market with high income, as well as a diversification of consumer tastes and preferences.

Related: Ukraine-Canada FTA agreement takes force today

  1. Canada is a country that knows Ukraine and its products. Largest Ukrainian diaspora is in Canada. 1.3 million Ukrainians live in Canada.
  2. Ukrainian exports to Canada are increasing. In 5 months of 2017, the export of goods to Canada was $ 19.5 million and increased by 73.4% ($ 8.3 million) compared to the same period last year.

And, importantly, exports of value-added goods are increasing. In particular, supplies of computer equipment, ceramic tiles, sports equipment, glass and plastic containers, boats, honey, and sunflower oil have increased. And the export of vegetables processed (canned food and juices) grew from $ 83 thousand to $ 2.5 million.

Related: Canada joins Sea Breeze 2017 drills in Ukraine

  1. The Free Trade Agreement eliminates import duties on imports of 98% of Ukrainian goods.

Ukrainian manufacturers of machine-building and chemical industries, clothing and footwear, furniture, food industry representatives will receive the greatest benefits. For example, until the entry into force of the Agreement, import duties are in force: 17.2% finished clothing, 9.7% footwear, 5.6% transport machinery, 5.8%, vegetables and fruits - 3.8%, chemical industry products - 4.5%.

And since August 1, these and other groups of goods will be free of duty.

  1. Ukrainian business will have access to procurement at the level of the federal government of Canada on the same terms with local companies. Their volume is about 15 billion Canadian dollars and provides from 350 to 400 thousand transactions each year.
  2. Exports to Canada of information and communication technology services have significant prospects.

Although the Agreement does not regulate trade in services, we also expect increased exports of Ukrainian services to Canada. In particular, the ICT market in Canada shows a steady increase (9.6%), with more than 70% of the major 250 players showing an increase in revenues last year.

Related: Ukraine interested in purchasing military vehicles from Canada in 2018

  1. We expect an increase in investment from Canada to Ukraine, as well as investments from other countries for the location of processing facilities for export to Canada and the EU. These investments mean modernization of enterprises, new jobs and a general improvement of the living standards of Ukrainians.
  2. The agreement will provide a "green light" for the cooperation of Ukrainian and Canadian enterprises in the IT, high-tech, engineering, aerospace and machine-building sectors through participation in global value added chains.
  3. The Export Promotion Office under the Ministry of Economic Development and Trade and the CUTIS Project (Canada-Ukraine Trade and Investment Support Project), which has been specifically created by the Agreement, are working with Ukrainian exporters to help them take full advantage of all the new opportunities in the Canadian market that create Free Trade Agreement.

Let us work together so that the new opportunities, created by CUFTA, are transformed into new contracts, deliveries, and currency revenues to Ukraine!


Related: Senate of Canada ratifies agreement on free trade with Ukraine

Related: Canada against Trump: Ottawa officially shaped a clear-cut course without the US

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