Ukraine, Canada sign free trade zone accord
The treaty opens 98% of the Canadian market for Ukrainian exporters.
Ukraine and Canada on Monday, July 11 signed an agreement establishing a free trade zone. On part of Ukraine's the treaty was signed by Ukraine's Economy Minister Stepan Kubiv, from Canada - Minister of International Trade, a representative of Ukrainian diaspora in Canada Chrystia Freeland.
The ceremony took place in the framework of Prime Minister of Canada Justin Trudeau visit to Ukraine.
This is Ukraine's largest agreement of this kind after the FTA with the EU. During 2010-2014, the volume of bilateral trade in goods between Ukraine and Canada averaged 280mn per year, including imports of Canadian goods - 214mn, exports from Ukraine - 86mn.
The negotiations that led to the agreement has started in 2010 and took six rounds.
After the entry into force, the agreement will open 98% of the Canadian market for goods for Ukrainian exporters. The import duties on agricultural products will be immediately cancelled (except for 108 tariff lines, the access to which will be opened in the framework of quotas), as well as all industrial goods (except for cars with a 7-year transitional period). The main exports that stand to benefit from duty-free access to the Canadian market are sunflower oil, sugar, bakery products, chocolate, alcoholic drinks, beer, juices; clothing, ceramics, metallurgy and chemical industry products. In the long term - high-tech equipment and industrial products with high added value.
The agreement also includes the provision of technical assistance to Ukraine to improve the access of Ukrainian goods to the Canadian market.
Ukraine, in turn, eliminates tariffs on 80% of goods imports from Canada. The agreement sets transitional periods of 3, 5 and 7 years for some products. The most sensitive commodities like sugar are excluded from the agreement.