Canada and Ukraine recently announced the launch of negotiations for the modernization of the Canada-Ukraine Free Trade Agreement (CUFTA). CUFTA entered into force on August 1st, 2017, eliminating tariffs on most bilateral merchandise trade. This announcement could be good news for importers in both countries, as it could lead to further tariff elimination on an expanded variety of products.
CUFTA has a review clause (Article 19.2) committing the two countries to review the Agreement within two years of its entry into force, with a view to expanding it to include new areas not part of the original agreement, such as investment and trade in services.
A modernized CUFTA will further expand Canada and Ukraine’s commercial ties, building on the over $300 million in bilateral trade between the two countries in 2020, and benefitting workers, businesses and consumers, including women and underrepresented communities in both countries. The modernization of CUFTA will also contribute to Ukraine’s stability and broad-based economic development.
Both countries agreed to modernize CUFTA to create new opportunities and good, middle-class jobs for Canadians and Ukrainians alike.
For further details, please view the consultations and trade agreement.