Canada-Ukraine FTA wipes out 98% of duties on Ukrainian ag goodsStaff Writer | August 16, 2017
August 1st marked the official launch of the Canada-Ukraine Free Trade Agreement (CUFTA).
Food trade Ukraine does not have a free trade deal with the U.S.
CUFTA will provide Ukraine with better conditions for the elimination of tariffs than Canada enjoys under the agreement.
It immediately wipes out 98 percent of duties on Ukrainian agricultural and industrial goods.
As Canada awaits the final ratification process of its trade agreement with the European Union, which Ukraine already has implemented through its own trade deal with the EU, Canada can now enter a Ukrainian market of some 45 million consumers with a 99.7-percent literacy rate in Europe’s largest country by area.
Ukraine encompasses 233,062 square miles, of which over 70 percent is agricultural land, and produces one-third of the world’s black-earth soil.
With even fewer tariff-related restrictions, Ukraine now has access to the Canadian market of over 36 million consumers, and potentially a lot more through the North American Free Trade Agreement (NAFTA) among Canada, the United States and Mexico.
Ukraine does not have a free trade deal with the U.S. but a Ukrainian company could bring part of a product to Canada, add something to it in Canada and export the final product to the U.S. under the current version of NAFTA. ■