News Tag: вільна торгівля з Канадою
Opportunities and Challenges of Virtual Trade Shows. How to get maximum effectiveness – webinar

The CUTIS project and the Canada-Ukraine Chamber of Commerce (CUCC) hold online training for export-oriented small and medium-sized businesses.

The main goal is to increase SMEs’ understanding of how effectively participate in virtual trade shows as the only way to show the products internationally, establish new linkages, find buyers, and export successfully.

Keynote speakers

Maria Guzman, Trade Facilitation Office (TFO)’s International Trade Expert, shared her expert’s experience, including challenges, on how to participate in virtual shows most effectively; how to build trust and successful sustainable business relations with Canadian buyers virtually.

  • What to consider by attending as a visitor or exhibitor? Advantages and disadvantages, challenges of the virtual format
  • How to search for buyers, consumers?
  • How to figure out the competitors and conduct the market research in virtual format (assortment, prices)?
  • What are the communicating opportunities with main stakeholders depending on the virtual platform?

Download the presentation.

John Banker, Group Show Director, Apparel Textile Sourcing Trade Shows, explained:

  • What is unique about virtual ATS?
  • What to expect for a visitor of a virtual trade show?
  • Panel session Made in Ukraine: practical tips for Ukrainian exporters

Olga Shtepa, CUTIS project coordinator (Kyiv), discussed the recent virtual conferences – Collision and Lviv IT Arena Conference, which focused on the service sector. Canadian MeetUp at Lviv IT Arena brings together more than 100 Canadian and Ukrainian ICT companies.

Download the presentation.

Marie Nazar, CUTIS project coordinator (Toronto), shared her impressions of the participation of Ukrainian companies at SIAL, the largest food and equipment exhibition in North America. The companies participated in the show as a part of the CUTIS’ support program for export-oriented SMEs.

Download the presentation.

Ukrainian companies may attend two North American apparel virtual trade shows for free

The Apparel Textile Sourcing (ATS) exhibition, one of the largest international apparel and textile sourcing events, will connect thousands of buyers and manufacturers from all over the world with two virtual trade shows.

The virtual events will take place live online on October 26-30 and November 16-20. These state-of-the-art digital events will connect more than 300 manufacturers and suppliers from over a dozen countries and regions with attendees and buyers from Canada, the USA, Latin America, Europe, Australia.

Ukrainian companies may attend the trade shows FOR FREE.

The ATS October 26-30 event will have an educational and market focus on global and Canadian trade issues with special attention on free trade agreements, sustainability and COVID-19.

The ATS November 16-20 event will feature panels and sessions focused on global suppliers and USA buyers. Analysts, economists, influencers and experts will recap 2020 and provide advantages to seek out in 2021.

The attendances will get:

  • Free sourcing, education, matchmaking & more.
  • Interactive seminars from apparel & sourcing industry experts.
  • Exhibits from North America, Latin America, Europe, Asia & the Middle East.
  • Live chats, virtual networking, engagement made simple.

To get more information and register, please follow the link.

Apparel Textile Sourcing trade shows are a global industry destination that provides a unique platform for manufacturers, distributors, apparel & fabric buyers, merchandisers, retail chains to find new business contacts, share experiences, learn new ideas and create business opportunities.

Ukrainian apparel products were presented at ATSC three times and caught the interest of Indian, Chinese and Pakistani companies, which considered the possibility of locating production capacity in Ukraine.

The CUTIS project improves government officials’ knowledge of international investment law

The CUTIS project held a 2-day webinar for government officials on international investment law.

The speaker – J. Anthony VanDuzer, Hyman Soloway Professor of Business and Trade Law, University of Ottawa.

The webinar provided an overview of the international investment regime, including bilateral investment treaties and investment chapters in free trade agreements, and current reform discussions. The emphasis was on policy implications rather than the technical detail of investment treaty provisions.

The first day was devoted to the substantive investor protection standards and investor-state dispute settlement (ISDS) arrangements in existing investment treaties along with a discussion of treaty practise and the issues that have arisen in practice.

Canada’s treaty practice and ISDS experience were used as a case study.

The second day was addressed possible reforms to investor protection standards and ISDS. The speaker canvassed treaty drafting strategies that are designed to better balance investor protection with the host state’s right to regulate compared to traditional treaty protections as well as alternatives to investment treaty protection. He also covered proposals for ISDS reform focussing on the reforms currently being discussed in UNCITRAL Working Group III, including the EU proposal for a multilateral investment court.

Rules of origin for apparel and footwear under the CUFTA – video

In order to obtain preferential access to the Canadian market under the Canada-Ukraine Free Trade Agreement (CUFTA), the product must be of Ukrainian origin.

The rules of origin impact on:

  • Import duty rates
  • Tariff quotas
  • Export trade statistics

It is essential to know that a declaration of origin of the goods is the only document Ukrainian producer needs to confirm the origin.

What does this mean for Ukrainian business?

Ukrainian companies don’t have to receive any additional certificates. The origin information shall be indicated on an invoice or any other document containing the description of the goods. Therefore, it means reducing financial and time costs for customs clearance of export products.

You can find out more about rules of origin for Ukrainian apparel and footwear goods under the CUFTA from Olexandra Brovko, CUTIS Senior Expert on Trade and Investment.

To free download the manual – I CAN Export: Rules of origin under the Canada-Ukraine Free Trade Agreement. Guidelines for Exporters (in Ukrainian), please follow the link.

Dnipro women entrepreneurs learned about new business opportunities and entering foreign markets

The CUTIS project in cooperation with regional chambers of commerce and industry launched a series of #SheChampion seminars. The main goal is to discuss barriers women entrepreneurs face in business and international trade, as well as share experience in entering foreign markets.

On March 3, in cooperation with the Dnipropetrovsk Chamber of Commerce and Industry, the first #SheChampion seminar was held in Dnipro, bringing together 30 participants.

Women entrepreneurs discussed gender issues in international trade, new trends in the Canadian markets and shared success stories of finding new partners in foreign markets.

Vitaliy Zhmurenko, president of the Dnipropetrovsk Chamber of Commerce and Industry, shared plans to create a platform to support women’s business in the region and spoke about a forum for women entrepreneurs in the autumn.

Oleksandr Bondarenko, Head of the Dnipropetrovsk Regional State Administration, stressed the importance of the development of women’s entrepreneurship. In the Dnepropetrovsk region, only one in five businesses is founded by women, so there is still a lot of work to be done. Dnepropetrovsk region is the leader in Ukraine in terms of the production of goods and export volumes. That is why the development of women’s entrepreneurship has considerable economic potential.

Vira Porovska, an expert on gender issues of the CUTIS project, talked about CUTIS gender component: SheChampion meetings and SHEforSHE Mentorship Program and presented a general report of the gender analysis of small and medium-sized businesses in 5 industries. Gender stereotypes, socially anticipated female behaviour, double burden, and conflict of professional and private roles were at the center of discussing gender barriers faced by women in export activities.

Iryna Hrytsai, Deputy Head of the Dnipropetrovsk Regional State Administration, described local government’s achievements in gender equality. In particular, Irina spoke about the creation of a coordination council and the development of a regional family and gender policy program.

Svitlana Cherevko, a Leading specialist of the Export Support Center of the Department of Foreign Economic Relations of the Dnepropetrovsk Chamber of Commerce and Industry, CUTIS Trainer, came out with useful electronic resources helping women-led SMEs in exporting to Canada.

Alina Scherbina, founder of “BE in UA” platform talked about the complexity of entering new markets, the main barriers and how to overcome them. The platform helps to promote the products of local manufacturers, conducts a range of events and develops educational projects for creative business.

In the end, Vira Porovska, conducted a masterclass about recruitment issues for SMEs. She focused on the main three questions that every employer should ask hiring an employee. The participants worked on staff’s motivation, carrier circle and questions to be prepared to discover and evaluate the knowledge, skills, motivation, and compatibility of prospective workers.

Target commodities and services for export promotion to Canada within the Export Strategy of Ukraine

The Ministry of Economic Development, Trade and Agriculture of Ukraine in partnership with the Canada-Ukraine Trade and Investment Support Project (CUTIS) and the National Institute for Strategic Studies presented a report “Target commodities and services for export promotion to Canada within the Export Strategy of Ukraine” on March 5.

The research was conducted by the experts of the Ministry of Economic Development, Trade and Agriculture of Ukraine, the SE “Ukrainian Industry Expertise”, Export Promotion Office (EPO), and supported by the CUTIS project.

The study was divided into two parts. The first one is focused on the selection of most promising commodities and services of Ukrainian exports to Canada within the framework of Ukraine’s Export Strategy.

356 commodities (food and machinery industries) were analyzed, resulting in the selection of 18 target groups.

Besides, the following target services for export promotion from Ukraine to Canada were analyzed: ICT (Computer services) and Creative industries (R&D, Professional and management consulting services, Technical, trade-related, and other business services, Audiovisual and related services, Other personal, cultural, and recreational services).

In the second part, comparative analysis and rating of target commodities and services were carried out.

As a result of the study, the following priorities for export promotion were selected:

Food Industry:

  • Fruits and nuts, frozen;
  • Tomatoes prepared or preserved;
  • Sugar Confectionery;
  • Vegetables, fruit, nuts, prepared or preserved;
  • Chocolate.

Machinery:

  • Articles of Carbon or Graphite Used For Electrical Purposes;
  • Non-Electric Radiators, Air Heaters;
  • Electric Domestic Heating Apparatus;
  • Household or laundry-type washing machines.

Services:

  • Computer services;
  • Technical, trade-related, and other business services;
  • Professional and management consulting services.

As Sergii Kovalov, Deputy Director of the Department of Export Development, Ministry of Economic Development and Trade of Ukraine mentioned, the next steps are development and approval of the Strategic Plan of export promotion to Canada. The ministry also plans to apply this methodology to select export promotion priorities and develop strategic plans for other markets in focus.

EPO is ready to use research results for preparing trade missions to Canada and provide consultations to Ukrainian businesses interested in exporting to Canada.

What impressions did Ukrainian manufacturers make on Canadian buyers and what are the prospects of Ukrainian products in the Canadian market?

The CUTIS project has organized a visit to Ukraine for Canadian distributors interested in finding reliable food and beverage suppliers for the Canadian market.

During the 10 days of the trade mission that Canadian business representatives spent in Ukraine, they visited Kyiv, Lviv, Kharkiv, Dnipro and Zaporozhzhia and met with representatives of more than 40 companies.

Yuriy Baranov, founder of CAALCO distributors corp., distributor of Yummy Market (Canada)

My company has been involved in the import of alcoholic beverages for the Canadian market for over 20 years, and at the moment I am considering expanding the import line with foodstuffs. I have a good track record of working with such leading Ukrainian alcohol companies as Bayadera group (TM “Hlibny Dar”), continue to negotiate with Alef Vinal (vodka Green Day, brandy Jean-Jack).

During the mission, I also established business relationships with such well-known companies as Petrus, Staritsky&Levitsky. A real discovery for me was the company “Ukrainian Medovary” from Drohobych, which restored almost lost recipes of Ukrainian natural beverages based on honey. A nice addition to the CUTIS program was a meeting with the Ukrainian Chamber of Commerce management.

I personally visited 12 companies and had about 20 meetings with representatives of Ukrainian business. Most of them amazed me with the high production culture, quality of products, flavour profiles, professionalism of their teams. It feels like these companies have a clear export strategy, a creative team and are result-oriented.

I would like to emphasize the companies such as Beehive, Malby (TM Millenium), Klion group (TM Veladis), Lviv handmade factory, Bob snail, Bayadera, Bester. These companies have every reason to be optimistic about the future of Ukrainian exports to the global markets.

I am often asked what the main prerequisite for the success of a product in the Canadian market is. The answer is simple and complex at the same time: the product should be interesting to Canadian distributors and buyers.

If a Ukrainian company plans to target only the ethnic market and the Ukrainian diaspora in Canada this kind of expansion is 99% doomed. Indeed, the Ukrainian diaspora has more than 1.6 million people but the vast majority of them have no idea what modern Ukraine is and what kind of products it produces because their ancestors came to Canada before the 1917 revolution. True, they are loyal to everything Ukrainian, but they have grown up in Canada and usually consume local Canadian products they are used to.

I think it is optimal for a Ukrainian company to initially test their product in the ethnic market, to understand how interesting it is to Canadian consumers. Only if the product is in demand should they try to approach Canadian grocery chains and address such issues as customizing the name or developing the label to meet Canadian requirements (labels in Canada must contain information in 2 official languages – English and French). It’s worth starting with European-oriented networks such as Yummy Market or Starsky.

Michael Prudkov, Vice President of Crussimpex, a Canadian distributor company   

Crussimpex is a food importer that cooperates mainly with small manufacturers and distributes throughout Canada.

Crussimpex already has experience working with Ukrainian companies, and we want to expand the mix of Ukrainian products in the Canadian market.

During the mission, I met with representatives of about 20 Ukrainian companies. The overall impression is positive. There are many decent manufacturers on the market.

In today’s world, however, having a good product is not enough. You need to be ready to invest in entering foreign markets.

I got the impression that not all Ukrainian companies understand how to promote and sell their goods abroad. Exports require extra costs: into skilled personnel, interesting packaging, promotion, marketing, etc. No way without that. In addition, the entry process takes more than one day – it is unlikely to send a huge batch for the first time. One needs to move step by step and heed the importer’s advice.

You also need to understand the specifics of each region. Canadian consumers, unlike American consumers, are very conservative. It is difficult to get them to buy a product they are not used to. Although geographically Canada is a huge country, the size of the market is small, and it is by no means comparable to the US.

I would also advise Ukrainian manufacturers to take a more prudent approach to the issue of pricing. On average, the wholesale price in the Canadian market is three times higher than the wholesale price in Ukraine. Talking about the retail price, the difference is 4-5 times. This includes logistics, distribution costs, retail margins, exchange rate risks, and more.

Not all Ukrainian manufacturers understand this math. They hear the word Canada and immediately inflate the selling price. Canadian consumers are quite sensitive to the price. With overstated prices, Ukrainian goods simply will not find a buyer in Canada.

What Ukrainian foodstuffs have the best chance on the Canadian market? These are definitely not meat or dairy products because they are subject to import quotas and the certification process is quite complicated.

Confectionery products have very good chances and the leaders of the Ukrainian market (AVK, Roshen, Biscuit-Chocolate) are already presented in the market. I think other Ukrainian companies can become a name and compete with Belarusian, Moldovan or Russian manufacturers.

Grocery manufacturers have a good chance: I want to try putting Ukrainian fishery products on the Canadian market.

In general, the chances of Ukrainian companies in the Canadian market are not bad. I think that the representation of Ukrainian goods will only grow. Specifically, if there is support from such programs as CUTIS and from the State.

Emma Turos, Executive Director of the Canada-Ukraine Chamber of Commerce in Ukraine

When entering a new market, not only Canadian, a Ukrainian manufacturer should listen to local importers who understand specifics of their own market much better. Sometimes they ask about five steps to success. The answer is simple – 5 Ps (product, price, promotion, place and people) that you read about in any guidebook. I would add another “P” – practice. Practice export activities on a daily basis, and everything will get clear. Understanding the process of entering a market and the sense of time and partner are very important qualities of an entrepreneur.

In most cases, it will be difficult to sell the product as it is marketed in Ukraine. In the food industry, you need to consider everything – product appearance, taste, preservation of tastiness and appearance over a long period of time (only transportation to Canada takes almost two months), packaging, labeling, product and brand name. The product name must be clear to the buyer, it must be international. The exception is ethnic markets. In this case, the name should meet expectations as much as possible. Simply speaking, if the label indicates that these are “Artek” waffles, then they should comply as much as possible with traditional taste and appearance. Buyers buy such products in order to experience the “taste of childhood”. By the way, Ukraine clearly under performs in this area. For example, there are so-called “Kyiv” cakes on the Canadian market. However, they are made in Moldova. There is also a general rule: if a brand is stronger than a product, the brand must be promoted. If the product is stronger than the brand, then the product is promoted. One may also operate here under private label. Ukraine has very few globally known brands, so one should be flexible about the product name and brand. We have cases where both the product and the name were changed to more universal ones.

Pricing is another sensitive issue. Ukrainian manufacturers must clearly understand their competitors in each market segment. In the ethnic market, for example, (gingerbread, cakes, bagels, candies, etc.) we compete in price and quality with Moldova and Belarus.

Two heads are better than one and if a company has a clear strategy and resources I would not recommend saving on expert services. Without knowing the market requirements and the preferences of consumers in other countries, mistakes can be made that they will cost a lot. Trying to re-enter a new market afterwards is very difficult, since the Canadian market, for example, is not that big, and the reputation will be difficult to restore.

We live in a global world of change where you have to constantly fight for your place but do that diplomatically and with a polite smile. I am deeply convinced that Ukraine still needs to take a worthy place in the global trade not only with resources but also with high value-added products.

How to export confectionery to Canada

The Canada-Ukraine Chamber of Commerce and the Canada-Ukraine Trade and Investment Support Project (CUTIS) held a practical workshop on confectionery exports to Canada.

During the event, participants had the opportunity to learn more about the main trends in the Canadian confectionery market. Besides, guests had a chance to communicate with specially invited Canadian distributors and a Canadian industry expert.

Emma Turos, executive director of the Canada-Ukraine Chamber of Commerce in Ukraine, noted that there are no universal recipes for entering the Canadian market, so each company should find its way, taking into consideration its own advantages and analyzing the specifics of the Canadian market. Download the presentation here

‘Canada is a migrant-friendly country with a strong presence of Eastern Europe including Ukrainians. This creates excellent conditions for promoting Ukrainian products. However, the Canadian market is significantly different from the Ukrainian and EU markets. If a Ukrainian company is successful in Europe, it doesn’t mean that its products will automatically be in high demand in Canada,’ Bertrand Walle, TFO Canada Associate, said. The channels of product promotion differ considerably as well. For example, there is no such large concentration of hypermarkets in Canada as in Europe. Instead, Canadians prefer small niche stores (health and organic products, ethnic food). To learn more about producer opportunities for the Ukrainian confectionery companies to export products to Canada please follow the link.

Canadian distributor Michael Prudkov, Crussimpex (Canada), advised Ukrainian companies to cooperate and form large product batches. In this way, each of the companies will be able to minimize logistics costs and offer Canadian buyers a wider range of products.

Yuriy Baranov, Canadian Yummy Market distributor, stressed the importance of correctly labeling products. Canada is a bilingual country, so the label must contain the product information in two languages – English and French. In the low and mid-price segment, a brand is not so important for a Canadian consumer. Therefore, it makes sense for Ukrainian companies to enter the market with a private label.

Participants of the event could learn specific requirements for food packaging and labeling from the presentation of Oleksandra Brovko, CUTIS senior trade and investment policy expert, which can be downloaded via the link (in Ukrainian).

During the event, a sectoral guide for confectionery export to Canada was presented.

Maxim Boroda, CUTIS senior trade and investment analysis expert, explained main trends and consumer preferences in the Canadian confectionery market. Interestingly, three-quarters of the Canadian confectionery market (3.4 billion CAD) is chocolate products. The average Canadian consumer spent 123 CAD on confectionery and sweets in 2018.

You can find out more interesting information about the Canadian confectionery market by downloading the guide for free via the link (in Ukrainian)

Zoia Pavlenko, CUTIS environmental expert, drew the attention of the audience to the prospects for organic products in Canada. The Canadian organic market is the fifth largest in the world with sales of more than 3 billion euros. The Canadian consumer eagers to buy organic chocolate and candy at a reasonable price. COR certification is a prerequisite for organic exports to Canada. Ukrainian products can’t be sold in the Canadian market with European organic certificates.

It is also important for Ukrainian companies to be mindful of gender-neutral messaging in promoting products in the Canadian market. Booklets or advertising materials with the female body objectification definitely don’t help Ukrainian products find new connoisseurs in Canada. Examples of inappropriate advertising for the Canadian market can be downloaded via the link (in Ukrainian).

Interesting facts about free trade agreements with Canada

There are 14 free trade agreements currently in force in Canada involving 51 countries. According to Statistics Canada, at present Canada’s trade with these countries accounted for 78.5% of Canada’s IMPORTS and 89.7% of Canada’s EXPORTS in 2018.

The objective of free trade agreements is to increase trade with partner countries by reducing tariff barriers and opening access to foreign markets.

Three biggest free trade agreements:

North American Free Trade Agreement, NAFTA. Canada’s total trade with the member countries of NAFTA was valued at $788 billion and accounted for 66.8% of Canada’s total trade with the world in 2018.

Comprehensive Economic and Trade Agreement, CETA. Canada’s total trade with the member countries of CETA was valued at $118 billion and accounted for 10.0% of Canada’s total trade with the world in 2018.

Comprehensive and Progressive Agreement for Trans-Pacific Partnership, CPTPP. Canada’s total trade with the member countries of CPTPP was valued at $98 billion and accounted for 8.3% of Canada’s total trade with the world in 2018.

On August 1, 2017, Canada-Ukraine Free Trade Agreement, CUFTA, entered into force. The Agreement will immediately open customs-free access to 98% of Canada’s market. This refers both to agricultural and industrial goods.

Canada’s situation is more complex. Right after the Agreement comes into force, the duties will be eliminated only for 72% of Canadian goods. The duties for the rest of 27% will be gradually reduced in compliance with transition periods – 3, 5, and 7 years. Besides, the Agreement provides for partial liberalization on the agricultural products key for Ukraine as well as some tariff rate quotas and specific goods.

Women entrepreneurs from Volyn region discussed the barriers on the way to international markets

The CUTIS project in cooperation with regional chambers of commerce and industry launched a series of #SheChampion seminars. The main goal is to discuss barriers women entrepreneurs face in business and international trade, as well as share experience in entering foreign markets.

On October 10, in cooperation with the Volyn Chamber of Commerce and Industry, the second SheChampion seminar was held in Lutsk, bringing together about 20 participants.

Women entrepreneurs discussed gender issues in international trade, learned more about online trading and shared success stories of finding new partners in foreign markets.

Successful craftswoman Kateryna Voylova has shared the secrets of opening an online store on Etsy e-commerce platform.

Olena Tarasenko from the Volyn enterprise “VGP” (TM “Ruta”, big paper products producer) described the history of export development to EU countries.

At the end of the event, the participants had the opportunity to take part in an interactive master class on employees’ motivation. Vira Porovska, CUTIS gender expert explained how to retain key specialists using non-financial motivation.

In the process of the seminar, women entrepreneurs exchanged advice, accumulated new ideas for improving the export strategies of their enterprises, shared their experience and set up new business contacts.

Similar events are planned in other regions of Ukraine. The next seminar will be in Vinnytsia, on October 17. Participation in the event is free in case of pre-registration