The Canada-Ukraine Free Trade Agreement came into force on August 1, 2017. Starting from August 2017, Ukraine eliminated import duties on more than 70% of imports from Canada.
For other agricultural and industrial products, Ukraine will gradually open its market over transitional periods of 3, 5 or 7 years. Canada immediately eliminated tariffs on 98% of Ukrainian goods.
What are the main results for businesses in targeted sectors after three years of free trade between Canada and Ukraine?
- Canada’s exports to Ukraine with the largest increases include fish and seafood, machinery and mechanical appliances, motor vehicles and parts, meat, and electronics. For example, in June 2020, Ukraine was the fourth‑largest destination by volume for Canadian fish and seafood exports.
- In 2019, Canada supplied 70% of Ukraine’s total imports of frozen crustaceans, cold‑water shrimps and prawns.
- In 2019, Ukraine also imported from Canada almost half of the prepared cranberries (46% of total imports) and 20% of diamonds.
- Canada’s imports from Ukraine that have expanded the most include iron and steel, electronics, and preparations of vegetables.
- Ukraine supplied 26% of Canada’s total imports of apple juice and 6% of snow‑skis in 2019.
According to Canadian experts, Canadian businesses that produce vehicles, engines, turbines, airplanes and turbo‑jets, petroleum gases, ethylene polymers, rubber, wood pulp, and meat have the strong economical potential in Ukraine.
At the same time, Canada offers more competitive prices for Ukrainian companies producing air conditioners, unwrought silver, cobalt, uncoated paper and paperboard, narrow woven fabrics, machinery and parts, fork‑lifts and other work trucks.
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