The Canada-Ukraine Free Trade Agreement (CUFTA) came into force on August 1, 2017.
The Agreement encapsulates an open duty-free access for Ukrainian exporters to 98% of the goods markets. Moreover, being aware of the different level of economic and social development, the parties will apply the principle of asymmetry of commitments, which enables Ukraine to adapt trade with Canada to new conditions. As a result, the country will use transient periods until the full liberalization of import duties.
«The Canadian market is attractive to Ukrainian exporters, as Canada imports goods to the tune of more than $ 400 billion annually. The abolishment of import duties will allow Ukrainian producers of food, light, chemical, petrochemical and machine building industries to get maximum benefits in Canadian markets», stressed First Vice Prime Minister of Ukraine/Minister of Economic Development and Trade of Ukraine Stepan Kubiv, while commenting opportunities of the CUFTA.
According to prediction calculations, the implementation of the Canada-Ukraine Free Trade Agreement will lead to $1.2 million worth of losses for the state budget in the first year of the effect of the agreement, but officials estimate that later this will be offset by VAT refund increased foreign investment to the tune of 36 million dollars over three years.
«The Free Trade Agreement with Canada, which came into force today, opens the door for Ukrainian business. The preferences under the Agreement will apply to goods which produced in Ukraine, as well as goods obtained from the use of raw materials and materials originating from third countries, in accordance with the requirements of the CUFTA. We should make every effort to turn opportunities provided by the Agreement into contracts, deliveries and currency revenues to Ukraine», emphasized Deputy Minister of Economic Development and Trade of Ukraine/ Sales Representative of Ukraine, the main negotiator on the Free Trade Agreement with Canada Nataliya Mykolska.
The provisions of the Agreement are in conformity with the World Trade Organization’s standards and the obligations of the parties to this international organization and also stipulate for deepening of trade and economic cooperation, in particular as regards: trade in goods, rules and procedures for the determination of origin, promotion of trade, application of protective, sanitary and phytosanitary measures, eradication of technical barriers to trade, access to public procurement, protection of intellectual property rights, e-commerce,environmental protection and settlement of disputes.
It should be noted that since 2009, the Governments of Ukraine and Canada have been holding negotiations on the liberalization of bilateral trade. On 14 July 2015, the negotiating team from the Ukrainian Government headed by the Deputy Minister of Economic Development and Trade of Ukraine/ Sales Representative of Ukraine managed to successfully complete the negotiation process.
On July 11,2016, the First Vice Prime Minister of Ukraine Stepan Kubiv and Minister of International Trade of Canada Chrystia Freeland signed the Free Trade Agreement between Canada and Ukraine. The Verkhovna Rada of Ukraine ratified the deal on March 14, 2017, thereby the process of ratification of the said Agreement was finished.