Clearit.ca's Blog on Customs Brokerage and News Updates
In early July 2016, the Government of Canada signed a new free trade agreement with Ukraine, setting the cornerstone for better standing bilateral relations and mostly, creating exciting new opportunities for businesses in both countries. The Canada-Ukraine Free Trade Agreement (CUFTA) is presently in the hands of the respective law makers of both governments in order to follow through on domestic implementation processes.
Like many other free trade agreements before it, CUFTA will help the Government of Canada deepen its commercial ties with the business leaders and officials in Ukraine in an effort to create jobs, strengthen the middle class and grow both economies. The Agreement is also part of Canada’s efforts to support Ukraine’s effort in building towards a stable, democratic and prosperous country.
“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”, mentioned Chrystia Freeland, Minister of International Trade in a press release sent out by Prime Minister Justin Trudeau following the agreement signing.
For Canadian businesses and investors, Ukraine offers numerous opportunities in areas such as information and communication technologies, agriculture, infrastructure and logistics, aerospace, defense and security and energy.
In 2015, bilateral trade between the two countries totaled almost $278 million – an increase by 13.9 per cent over 2014. Canada exported goods such as pharmaceuticals, fish and seafood and coking coal, for more than $210 million to Ukraine in 2015. That same year in terms of imports, Canada received for more than $67 million worth of imports from Ukraine which included fertilizers, iron and steel and anthracite coal.
Both governments now have the signed agreement on their agendas and must complete ratification and implementation processes in order for it to come into force.