Surge in trade volumes between Ukraine and Canada after Free Trade Agreement

Business in Ukraine: Surge in trade volumes between Ukraine and Canada after Free Trade Agreement

In January 2018, Governor General of Canada Julie Payette met with President of Ukraine Petro Poroshenko during her official visit to Ukraine. The parties discussed bilateral relations between Ukraine and Canada and noted that the trade turnover between Ukraine and Canada grew by 60% as a result of the entry into force of the Canada-Ukraine Free Trade Agreement.

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On 18 January, President of Ukraine Petro Poroshenko and Governor General of Canada Julie Payette, who was on a visit to Ukraine, held talks on strengthening cooperation between the two countries in Lviv. The parties discussed bilateral relations between Ukraine and Canada while Julie Payette assured Canada’s support for Ukraine. This was Julie Payette’s first overseas visit as Commander-in-Chief after her installation as Governor General of Canada on 2 October 2017.

At the meeting, Petro Poroshenko stated that Ukraine cooperates with Canada in various fields, and Canadian partners are ready to share their experience. In particular, Canada actively cooperates with Ukraine in the development of rural medicine. The patties also noted that there had been many achievements in Ukrainian relations with Canada. In particular, the entry into force of the Canada-Ukraine Free Trade Agreement (CUFTA) significantly accelerated and created better conditions for the development of trade and investment. So, bilateral trade between Ukraine and Canada grew by 60%.

At the end of December 2017, when citing statistics, Minister of Foreign Affairs of Ukraine Pavlo Klimkin made a statement that Ukrainian exports to Canada in 2017 grew by 76%, while Ukraine’s imports from Canada increased by 93%.

The CUFTA was signed on 11 July 2016 in Kyiv. The Verkhovna Rada ratified it on 14 March 2017. President Petro Poroshenko signed the law on ratification on 3 April 2017. On 1 June 2017, the CUFTA was signed by the Governor General of Canada, after being previously approved by the House of Commons and the Senate.

The CUFTA entered into force on 1 August 2017. It essentially eliminated customs duties on most products. In particular, Ukraine has opened its market to Canadian goods immediately on 72% of tariff items, and provided transitional periods of one, three, five and seven years for 27% of tariff items. Canada on the other hand, has granted duty-free access to Ukrainian goods immediately for 98% of tariff items.

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