Ukraine and Canada signed a free trade agreement

“The agreement with Canada is the first country agreement North American region covers a market of this magnitude. The agreement between Ukraine and Canada is an additional factor for inclusion of Ukraine into the global chain of production of goods with high added value in the context of concluding a future Agreement on the FTA between Canada and the EU,” explained the signatories, the first Vice Prime Minister of Ukraine Stepan kubiv, reports the press service of the Ukrainian government.

The Ukrainian Cabinet of Ministers stresses that the agreement will help to diversify trade flows from Ukraine and to attract canadian investment. Signed today by the representatives of the governments of the two countries shall be subject to ratification by the parliaments of Ukraine and Canada.

Earlier, the Ministry of economic development and trade of Ukraine reported that the deal would allow Ukrainian business to gain greater benefits from the opportunities from duty-free access to a new market, and, in addition, will provide opportunities to import advanced technologies that will contribute to economic growth.

In 2010-2014, the annual volume of export of Ukrainian goods Canada was approximately $86 million In Kiev hope that the signing of the agreement should help to increase this number.

Directly after entering the agreement, Ukrainian producers, as reported by the Ministry of economic development, will receive free access to 98% of the canadian market. Import duties on most agricultural and industrial goods from Ukraine should be abolished completely, for other products, they will be reduced and within the limits of quotas can be reduced to zero. According to the Kyiv authorities, the greatest benefit from changing the rules of the game needs to manufacturers of sunflower oil, sugar, chocolate and other confectionery products, juices, beer and alcoholic beverages.

At the same time Ukraine as less developed in economic terms, the party will have the opportunity to temporarily retain part of the existing duties. Immediate relief from customs duties shall be approximately 72% of canadian goods, tariffs on the remaining products will be reduced and lifted gradually over transitional periods of 3.5 and 7 years.

“The agreement allows companies to obtain preferential access to participation in public procurement at the governmental level in both countries. Ukrainian suppliers will have the right to a fair and non-discriminatory access to participation in tenders”, – noted in the message of Ministry of economic development of Ukraine.