Canada and Ukraine sign free trade agreement

Legislation | | MIC Customs Solutions |

Canada and Ukraine have signed a new free trade agreement that is expected to deliver economic benefits for both countries.

A new free trade agreement between Canada and Ukraine has been signed by the leaders of both countries this week in Kyiv.

The aim of the Canada-Ukraine Free Trade Agreement (CUFTA) is to strengthen commercial ties between the nations, bolster the growth of the middle classes and facilitate bureaucracy-free trade between Canadian and Ukrainian businesses.

In 2015, bilateral trade between Canada and Ukraine totalled almost C$278 million (€192.27 million), an increase of 13.9 per cent compared to 2014. Canada's exports to Ukraine mostly consist of pharmaceuticals, seafood and coking coal, with fertilizers, iron and steel, and anthracite coal going the other way.

Canada believes the Ukrainian market offers numerous opportunities for its local businesses and investors, particularly in areas such as information and communication technologies, agriculture, infrastructure and logistics, aerospace, defence and security, and energy.

Both nations must now go through their respective domestic legislative processes to ratify and implement CUFTA.

Canadian prime minister Justin Trudeau said the deal "represents a significant milestone in the relationship between Canada and Ukraine. It will bolster our economies, spur innovation and lead to long-term benefits for the middle class and those working hard to join it".