Canada-Ukraine Free Trade Agreement comes into force
The Canada-Ukraine free trade agreement comes into force on August 1, 2017.
This information was reported by the press service of the Ministry of Economic Development.
The free trade agreement between the countries will provide Ukrainian producers with a duty-free access to 98% of the market. At the same time, due to the varying degrees of economic and social development, the parties will apply the principle of asymmetric obligations, which allow Ukraine to adapt the trade with Canada to new conditions. Consequently, Ukraine will use the transition periods until the full liberalization of import duties.
"The Canadian market is interesting for Ukrainian exporters because Canada imports products to the total of more than $400 billion annually. The cancellation of import duties by Canada will allow Ukrainian producers to export processed agricultural products, food, textile, chemical, petroleum, and machinery industries products and get the maximum benefits in the Canadian markets," comments Stepan Kubiv, the First Vice Prime Minister, the Minister of Economic Development and Trade of Ukraine.
According to the forecast calculations, coming into the force, the agreement will result in insignificant losses of the state budget revenues. In particular cancellation of import duties will lead to about $1.2 million losses in the first year. At the same time, in the medium term perspective, shortcomings might be compensated by VAT, as well as by the increase in the direct foreign investment of about $36 million over 3 years.
"The free trade agreement with Canada, which entered into force today, opens new opportunities for Ukrainian business. Within the framework of the agreement, the preferences will be valid for goods produced in Ukraine and goods made of raw materials and materials produced in the third countries in accordance with the agreement requirements," noted Natalia Mikolskaya, the Deputy Minister of Economic Development and Trade, the Trade Representative of Ukraine, the main negotiator of the free trade agreement with Canada.
The provisions of the agreement and the parties’ obligations comply with the WTO standards. Moreover, the agreement ensures the close trade and economic cooperation in terms of commodity trade, rules and procedures of origin; trade facilitation; application of protective, sanitary and phytosanitary measures; reduction of technical barriers to trade; access to public procurement, etc.
Let us remind that Ukraine and Argentina have several areas for fruitful cooperation.