Updated Free Trade Agreement between Ukraine and Canada entered into force

The updated Free Trade Agreement between Ukraine and Canada (CUFTA) comes into force today, July 1. This is stated in the message of the Ministry of Economy of Ukraine.

According to a joint statement by the Ukrainian ministry and Export Promotion, International Trade and Economic Development Canada, the updated CUFTA will benefit workers, businesses and consumers in both countries by strengthening trade and economic cooperation between Canada and Ukraine. The agreement retains the market access terms for goods from the 2017 agreement and has been updated to include sections on investment, services and inclusive trade.

“The updated Free Trade Agreement between Ukraine and Canada is a symbol of Canada’s continued support for our struggle and economic resilience. I am convinced that it will enhance trade and economic cooperation between Ukraine and Canada, strengthen our economic partnership and facilitate the participation of Canadian companies in the economic recovery and reconstruction of Ukraine.

This is a historic event without exaggeration, as this agreement is one of the most modern in the world. This is the first agreement that clearly shows that Ukraine shares the trade agenda of Canada, the United States, the EU, Japan and our other partners,” said Yulia Svyrydenko, First Vice Prime Minister and Minister of Economy of Ukraine.

She emphasized that the updated CUFTA is the first free trade agreement to pay special attention to Crimea and the Crimean Tatars and to strengthen the role of indigenous peoples in the economy and international trade. This is the basis for the economic development of Crimea after the liberation of the peninsula from the occupiers.

Key benefits of the updated Free Trade Agreement between Ukraine and Canada:

• The agreement provides for the liberalization of the services market according to the negative list. That is, when everything is allowed that has no reservations spelled out in the agreement. And investment protection will be strengthened with new comprehensive and modern instruments. This will help maximize the development of trade in services between Ukrainian and Canadian companies.
• Thanks to the agreement, employees of Ukrainian companies that will provide services in Canada will be able to apply for temporary entry to Canada under simplified and expanded conditions.
• The agreement will help Ukraine build a free and open digital ecosystem of the economy. So we will develop digital technologies.
• Goods that are exported to Canada duty-free will be able to use components from the EU, the UK, and Israel. This will expand Ukraine’s involvement in global supply chains.
• The agreement also addresses issues related to the environment, labor, transparency, and responsible business practices.
• In general, the text of the document is based on the standards of the Canada-U.S.-Mexico Free Trade Agreement and the Trans-Pacific Partnership Agreement, which Ukraine is preparing to join. In fact, it is a pact with partners who support our trade security.

Tags: Ukraine, Canada