5 Reasons to Pay Attention to the new Canada-Ukraine Free Trade Agreement
The Government of Canada announced earlier this month that it has successfully concluded negotiations for the Canada-Ukraine Free Trade Agreement (CUFTA). Once in force, CUFTA will usher in a new era of trade relations between the two countries. Here are five reasons Canadian importers should pay attention to potential new sourcing opportunities from Ukraine:[vc_single_image image=”24216″ img_size=”full” alignment=”center”]
- History of Strong Relations: Canada and Ukraine enjoy strong diplomatic, social and economic ties. Canada was the first Western nation to recognize Ukraine’s independence in 1991 and has reconfirmed this commitment in its support for Ukraine during the recent crisis in Crimea. Canada is also home to over 1.2 million citizens of Ukrainian descent.
- Growth in Trade: CUFTA will be Canada’s first trade agreement in Europe after the Canada-EU agreement. Bilateral trade is forecast to grow 19% as a result of the new agreement, with an increase of $24 million in Ukraine’s exports to Canada. Canada currently imports an average of $120 million annually from Ukraine. Half of imports are concentrated in the mineral industry, with the remaining spread across a diverse array of sectors including apparel, agro-food and electronics.
- Elimination of Tariffs: Once in force, CUFTA will immediately eliminate 99.9% of all tariffs on Canada’s current imports from Ukraine. Ukrainian products that will benefit the most from duty-free access are sunflower oil, sugar and chocolate confectionery, baked goods, vodka, apparel, ceramics, iron and steel, and minerals.
- Organic Agriculture Producers: Ukraine’s rich, fertile soil and favourable growing climate have earned it a reputation as “the bread basket of Europe.” The country has the largest agricultural land area on the European continent. Unsurprisingly, food accounts for 25% of Ukraine’s exports, including sunflower seeds and oil, cheese, confectionary, and alcoholic beverages.
- Textiles & Apparel Boom: Ukraine boasts over 2,000 small and medium enterprises (SMEs) in the textile and apparel industry, offering advantages of a highly skilled workforce and high-quality raw materials for uninterrupted production. Top segments include intermediary production, knitwear and footwear, with industry activity concentrated in the cities of Kyiv, Odessa, and Lviev.
For more information on trade opportunities in Ukraine:
- Trade Promotion Portal of Ukraine
- Database of Ukrainian Exporters
- Canada-Ukraine Chamber of Commerce
- Ukraine Chamber of Commerce & Industry
- Ukrainian Guild of Clothes Manufacturers
Upcoming Trade Shows in Ukraine:
- Kyiv Fashion Expo (Apparel & Textiles) / September 9-11, 2015
- Lisderevmash (Wood Products) / September 22-25, 2015
- Beer & Soft Drinks Industry Exhibition / September 23-25, 2015
- Intertextiles 2015 / September 30-October 3, 2015
- Agro 2016 / February 10-12, 2016