Ukraine and Canada agree on updated Free Trade Agreement
Ukraine and Canada have announced the completion of negotiations on an updated Free Trade Agreement between the two countries; this document will replace the existing agreement that has been in effect since 2017.
Source: European Pravda, with reference to the press service of the Ministry of Economy
The heads of governments of the two countries said that the negotiations that took place during the visit of Ukraine's Prime Minister Denys Shmyhal to Canada are over.
The main difference between the new agreement and the old one will be that in addition to the abolition of tariffs, Ukraine and Canada are expanding opportunities for enterprises that have not only a Ukrainian, but also a foreign component in their products.
"Tariffs will also be lifted on those Ukrainian goods that have components originating from the EU, the European Free Trade Association, the UK and Israel.
This should encourage the creation of production chains, make the location of production in Ukraine more attractive for foreign investors who plan to supply their goods to the Canadian market," explained Yulia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine.
An important element of the agreement is that the new agreement will allow the parties everything that is not prohibited.
"The agreement does not regulate what is allowed, on the contrary – [it] carefully writes out exceptions to the full freedom to provide services. And we do it in such a way that all regulation is as transparent, clear and predictable as possible," Svyrydenko said.
Separately, guarantees for investors were written, as well as an investment protection system based on the most modern legal instruments.
One section includes a digital commerce agreement that sets out all fundamental freedoms in this area. This is already the second digital trade agreement that Ukraine has signed. The first one was signed with the UK in January.
Such digital agreements are primarily aimed at preventing the appearance of barriers in the future and should reduce obstacles for Ukrainian businesses to participate in global digital trade.
In addition, the new agreement regulates financial services, temporary entry for business persons, telecommunications, trade and gender, trade and small and medium-sized enterprises, as well as trade and indigenous issues.
The new agreement will also include updated chapters on rules and procedures of origin, competition policy, monopolies and state-owned enterprises, public procurement, environment, labour, development and administration of measures and transparency, anti-corruption and responsible business conduct.
The Free Trade Agreement between Ukraine and Canada should help Ukraine conclude similar agreements with other countries.
Ukraine and Canada started negotiations on the modernization of the existing agreement in January 2022.
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