This article discusses the signing of #Free Trade Agreement between #Canada and #Ukraine which will significantly #facilitate trade between two countries and increase #economic cooperation.
Following the official visit of the Prime Minister of Canada, Justin Trudeau, to Ukraine on 11 July 2016, the Canada-Ukraine Free Trade Agreement was signed. The President of Ukraine, Petro Poroshenko, was also present at the ceremony of signing. The President of Ukraine stated that Ukraine will continue further negotiations in order to expand the scope of the agreement.
Following the entry into force of Free Trade Agreement Canada will grant free access to approximately 98% of its goods market to the Ukrainian exporters. Within 3-7 years all trade tariffs and restrictions for major groups of goods will be mutually abolished. In particular, immediately upon the entry into force of the agreement trade tariffs on fish, grains, wine, juice, bread, clothing, metal products, and electrical tools will be abolished. Gradually, trade duties and tariffs on a number of agricultural and construction materials, engineering products, including components for aircrafts, cars and tractors will be cancelled as well.
Following signing of the agreement, Canada and Ukraine now need to proceed with their respective domestic implementation processes (ratifications) in order to bring the Canada-Ukraine Free Trade Agreement into force.
We note that it was estimated that the overall amount of trade turnover between Ukraine and Canada from 2012 to 2014 amounted to approximately USD 300 million annually. The main exports from Canada to Ukraine are agricultural and sea products. It is expected that the trade turnover will significantly increase following launching of the Canadian-Ukrainian free trade zone.
Also, we note that the EU-Ukraine free trade zone was launched on 1 January 2016. In addition, it was announced that in 2016 Ukraine seeks to conclude free trade zone agreements with Israel and Turkey.