The updated Canada-Ukraine Free Trade Agreement (CUFTA) enters into force on July 1. On June 26, Yulia Svyridenko, Ukraine's First Deputy Prime Minister and Minister of Economy, and Mary Ng, Canada's Minister for Export Promotion, International Trade, and Economic Development, issued a joint statement regarding this historic event.
Points of attention
- The updated Free Trade Agreement between Ukraine and Canada enters into force on July 1, 2024.
- The agreement provides for liberalising the services market and strengthening investment protection, which will contribute to the development of trade in services between Ukraine and Canada.
- This agreement opens up opportunities for building a free digital ecosystem, expanding global supply chains and improving conditions for Ukrainian companies in the Canadian market.
- The updated CUFTA is designed to strengthen the bilateral economic partnership and promote economic recovery. The agreement also emphasises the development and support of indigenous peoples in the economy.
- The volume of trade between Ukraine and Canada shows steady growth, which is supported by the countries' various agreements and common interests.
The historic Agreement on free trade between Ukraine and Canada will be effective from July 1
The updated CUFTA will benefit both countries' workers, businesses and consumers, strengthening trade and economic cooperation between Canada and Ukraine. The Agreement retains the market access conditions for goods from the 2017 Agreement and has been updated to include chapters on investment, services and inclusive trade.
In the long term, the updated CUFTA will strengthen our overall bilateral economic partnership, the joint statement said.
As emphasised in the joint statement, Canada is committed to strengthening its relations with Ukraine and supporting its security and stability. Ministers will continue providing additional opportunities for Canadian and Ukrainian businesses and workers to drive a sustainable economic recovery.
The updated Free Trade Agreement between Ukraine and Canada symbolises Canada's constant support for our struggle and economic stability. I am convinced that it will strengthen trade and economic cooperation between Ukraine and Canada, strengthen our economic partnership, and promote the participation of Canadian companies in Ukraine's economic recovery and reconstruction.
Yulia Svyrydenko
First Deputy Prime Minister-Minister of Ukraine — Minister of Economy of Ukraine
This is without exaggeration a historical event, because 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 USA, the EU, Japan and our other partners.
As Yulia Svyridenko emphasised, the updated CUFTA is the First Free Trade Agreement, in which special attention is paid to Crimea and the Crimean Tatars and to strengthening the role of Indigenous peoples in the economy and international trade. It is the basis for Crimea's economic development after the peninsula's liberation from the occupiers.
Key advantages of the updated Free Trade Agreement between Ukraine and Canada:
The Agreement allows the liberalisation of the services market according to the negative list when everything is allowed for which the reservations are written in the Agreement. Investment protection will be strengthened with new, complex, and modern tools. This will contribute to the maximum development of service trade between Ukrainian and Canadian companies.
Thanks to the Agreement, employees of Ukrainian companies that will provide services in Canada can apply for temporary entry to Canada under simplified and extended conditions.
The Agreement will help Ukraine build a free and open digital economy ecosystem. So, let's develop digital technologies.
Components from the EU, Britain, and Israel will allow goods to be exported to Canada without duties, expanding Ukraine's involvement in global supply chains.
Issues related to the environment, labour, transparency, and responsible business conduct are essential to the Agreement.
In general, the document's text is based on the standards of the Free Trade Agreement between Canada, the USA, and Mexico and the Trans-Pacific Partnership Agreement, which Ukraine is preparing to join. It is a pact with partners who support our trade security.
Trade relations between Ukraine and Canada
In 2021, the volume of trade between the countries reached its maximum and amounted to about 447 million Canadian dollars.
Due to a full-scale Russian invasion of Ukraine in 2022, the volume dropped to CAD 422 million. But already in 2023, trade has increased by more than 55% to 695 million Canadian dollars, mainly thanks to Canadian exports of military equipment to Ukraine to support the military effort.
In 2024, only in the first four months of this year was the growth of Ukrainian exports to Canada recorded—it increased by 2.8 times (up to 66 million dollars).
