News Tag: експорт до Канади
Covid effect as a window of opportunity for Ukrainian exporters in Canada

The Сovid effect turned out to be equally unexpected and devastating for all countries of the world without exception, including Canada and Ukraine. It is known, however, that every stick has two ends, that is, thanks to the dangerous virus, all countries and manufacturers are on equal terms and have the same restrictions.

Life does not stop and the need for good-quality goods, clothes, shoes, food, furniture, etc. cannot be cancelled. The demand, of course, changes, transforms, sometimes decreases, sometimes, on the contrary, increases.

Preference is given to the products that are produced locally, or elsewhere, better not in China (but at Chinese prices!). This is a consequence of the aggravation of economic relations with China recently, on the one hand, and the desire to try something new, on the other hand.

According to many experts, consumers are even willing to pay more for local products.

Traditional personal communication during industry events or trade missions is replaced with virtual video conferencing, messengers and online platforms. This is where significant benefits for Ukrainian producers appear.

First, Ukrainian goods are trusted in the local Canadian market due to the large diaspora.

Second, what is produced in Ukraine is a kind of synonym for what is produced in Europe. Hence the respect and understanding that production is based on international and European social and environmental standards – without the use of child labor or uncertified raw materials. The focus of Ukrainian manufacturers on European trends and the latest fashion innovations also remains important.

All this taken together opens a wider window of opportunity for Ukrainian exporters to Canada, which is worth taking advantage of. Canadian buyers are interested in finding reliable business partners in Ukraine.

That is why a properly prepared and successfully conducted virtual meeting is a guarantee of mutually beneficial business relations in the future. Everything is like in a theater here: you have to dedicate a lot of time, sweat and blood in preparation, training and coaching to enjoy a moment of glory on stage in the spotlight.

Why won’t the virtual format of meetings disappear after the end of the epidemic?

The reason is obvious: it is beneficial to meet online given the saving of time and money.

Although the virtual format will in no way replace live communication, we advise you to learn this know-how and use it more actively in your business communications.

Author: Olga Shtepa, CUTIS project coordinator 

How to export organic to Canada – webinar

The CUTIS project, in cooperation with the Export Promotion Office and Organic Ukraine association, held a series of webinars for Ukrainian organic producers who are interested in exporting to new markets, including the Canadian market. More than 40 organic companies participated in the event.

Why may Canada be attractive to Ukrainian organic producers? North America remains a leader in the consumption of organics. The United States occupies the first place with the rest of the world considerably lagging. Canada, with 3 billion euros of its organic market volume, ranks sixth in the global ranking.

During the event, CUTIS project experts and the Canada Organic Trade Association talked about the main features of successful organic exports to the Canadian market. Export Promotion Office team describes how to use helpful tools for finding and analyzing new markets.

Oleksandra Brovko, CUTIS Ukrainian Senior Trade Policy Expert, analyzed regulatory requirements for exporting organic products to Canada under the Free Trade Agreement between countries. Oleksandra also focused on the importance of labelling requirements for organic products in the Canadian market (download the presentation).

Zoia Pavlenko, CUTIS Environmental Expert, spoke about the specifics of the Canadian organic market and drew participants’ attention to the product groups that are most favoured among Canadian consumers (download the presentation).

Tia Loftsgard, Executive Director of the Organic Trade Association of Canada, described the Canadian organic market structure. Besides, she talked about consumer preferences and organic certification for the Canadian market (download the presentation).

Webinar recording 

 

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.

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.

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.

Ukrainian footwear companies participated in Canada’s largest shoe show for the third time

From August 18 to August 20, Ukrainian shoe companies participated in Canada’s largest Toronto Shoe Show.

This year more than 650 Canadian and European footwear and accessories brands were taking part in the exhibition.

As part of U CAN Export Support Program, the CUTIS project supported the participation of seven Ukrainian shoe manufacturers:

  • KaDar (Lutsk, men’s and women’s casual shoes)
  • Kredo (Khmelnitsky,  rubber footwear with EVA soles)
  • Olteya (Zhytomyr, women’s leather shoes)
  • Alisa-Line (Kharkiv, children’s rubber footwear)
  • Realpaks (Kharkiv, women’s and men’s rubber shoes)
  • Shoesprom Group (Kyiv, men’s and women’s shoes)
  • Stepter (Lviv region, men’s and women’s shoes)

This is the third shoe show in Canada for the Ukrainian footwear business. Previous trade shows took place on August 2018 and February 2019.

The results of the first two exhibitions are positive. Six Ukrainian producers have already delivered their samples to Canadian buyers, and three deals are almost on a finish line.

Before the exhibition, the CUTIS project organized a meeting of Ukrainian business with Cougar shoe company, which has been successfully operating in the Canadian shoe market since 1948!

Besides, as part of the retail tour, representatives of the Ukrainian shoe industry visited several malls and shoe stores in Toronto, including Nordstrom, ALDO, Hudson’s Bay, Steve Madden, Brawns. Such an introductory tour is very important because it helps Ukrainian businesses understand specific of Canada’s footwear industry and consumers’ preferences.

The Canada-Ukraine Free Trade Agreement (CUFTA) entered into force on August 1, 2017, and opened customs-free access to 98% of Canada’s market for Ukrainian companies. Canada’s situation is more complex. The duties were eliminated for 72% of Canadian goods. The customs tariffs for the rest of 27% will be gradually reduced in compliance with transition periods – 3, 5, and 7 years.

The Canada-Ukraine Trade and Investment Support (CUTIS) Project is a 5-year (2016-2021) Canadian development assistance initiative designed to lower poverty in Ukraine through increasing exports from Ukraine to Canada and investment from Canada to Ukraine. The project funded by the Canadian Government through the Global affairs Canada and implemented by the Conference Board of Canada in partnership with the Canada-Ukraine Chamber of Commerce.

The CUTIS project implements U CAN EXPORT Support Program in five priority sectors: clothing, footwear, furniture, confectionery, and IT services.

CUTIS represented Ukrainian apparel manufacturers at Canada’s leading clothing and textiles exhibition

From August 19 to 21, the products of nine Ukrainian apparel manufacturers were presented at the Apparel Textile Sourcing Canada, the biggest international sourcing event focused on the Canadian and North American Apparel, Textile, and Fashion sectors.

In Toronto, CUTIS experts and the Canadian TFO expert invited by the project will present Ukrainian companies’ samples that are part of the export support program U CAN Export:

Ukrainian apparel products were presented at ATSC for the second time. Last year, five Ukrainian brands participated in the ATSC fashion show.

Apparel Textile Sourcing Canada is the great option to meet thousands of apparel & fabric buyers, sourcing directors, designers, merchandisers, retail chains, department stores, and more from Canada, the USA, and the world.

In total, more than 500 manufacturers from more than 30 countries participated in the exhibition in Toronto.

After Toronto, the exhibition will take place in September in Europe and then in Miami, the USA.

ATSC features three days of sourcing, free seminars, and panels, fashion shows, networking, and inspiration.

The Canada-Ukraine Trade and Investment Support (CUTIS) project is a 5-year (2016-2021) Canadian development assistance initiative designed to increase exports from Ukraine to Canada and investment from Canada to Ukraine. The project funded by the Canadian Government through the Global Affairs Canada and implemented by the Conference Board of Canada in partnership with the Canada-Ukraine Chamber of Commerce.

Apparel is one of the priority areas for the project. CUTIS implements U CAN EXPORT Support Program in five priority sectors: clothing, footwear, furniture, confectionery, and IT services.

Ukrainian clothing aroused great interest among Canadian buyers and retailers – CUTIS Apparel Mission

From 1 to 7 August, seven Ukrainian clothing manufacturers, selected by experts from TFO Canada, visited Canada in the framework of the Apparel Mission, organized by the CUTIS project. Canadian experts gave preference to women-owned companies and companies implemented environmental standards. The mission was held in two Canadian cities – Toronto and Montreal.

During the mission, Ukrainian apparel companies had several business meetings with leading European clothing suppliers on the Canadian market. Business negotiations with Canadian retailers were also arranged. Besides, Ukrainian business had a chance to meet with Canadian apparel brands representatives.

The following companies participated:

Ukrainian products have sparked keen interest from Canadian buyers and retailers. The Canadian business highly commended the quality, interesting portfolios, and attractive prices of Ukrainian clothing.

According to Olga Shtepa, CUTIS project coordinator, thanks to the Canada-Ukraine Free Trade Agreement (CUFTA) and the abolition of import duties, Ukrainian clothing has 18% advantage on the Canadian market compared to imports from such powerful global players as, for instance, China. Therefore, Ukrainian clothing can and should be presented and successfully sold on the Canadian market.

‘The interest of the Canadian companies in the Ukrainian apparel is very high, several participants of the mission received trial orders. Now everything depends on the Ukrainian manufacturers, their ability to use the opportunity to develop cooperation with Canadians and expand exports to the extremely promising Canadian market,’ Olga Shtepa said.

The Canada-Ukraine Trade and Investment Support (CUTIS) project is a 5-year (2016-2021) Canadian development assistance initiative designed to increase exports from Ukraine to Canada and investment from Canada to Ukraine. The project funded by the Canadian Government through the Global Affairs Canada and implemented by the Conference Board of Canada in partnership with the Canada-Ukraine Chamber of Commerce.

Apparel is one of the priority areas for the project. CUTIS implements U CAN EXPORT Support Program in five priority sectors: clothing, footwear, furniture, confectionery, and IT services.

In August 2018, with the assistance of the project, eight Ukrainian apparel manufacturers took part in the international exhibition Apparel Textile Sourcing Canada, which united more than 500 apparel manufacturers from more than 20 countries.

In July 2019, Ukraine House Toronto official opening guests enjoyed the Fashion Show of six famous Ukrainian apparel companies. RITO and Andre Tan companies, which participate in CUTIS export support program U CAN Export, also took part in the show and presented their latest collections.

Ukrainian clothing manufacturers to meet with Canadian buyers and retailers

From 1 to 7 August, Ukrainian clothing manufacturers, selected by experts from TFO Canada, will visit Canada in the framework of the Apparel Mission, organized by the CUTIS project. Canadian experts gave preference to women-owned companies and companies implemented environmental standards. The mission will be held in two Canadian cities – Toronto and Montreal.

During the mission, Ukrainian apparel companies will have a number of business meetings with leading European clothing suppliers on the Canadian market. Business negotiations with Canadian retailers are also arranged. Besides, Ukrainian business will be a chance to meet with representatives of Canadian apparel brands.

“Being a representative of Ukrainian clothing manufacturers in Canada is an extremely complicated and demanding challenge. It’s not just about finding a reliable partner and concluding a commercial deal, but also about helping to create the image of a Ukrainian supplier on the Canadian market as a reliable partner for producing high-quality European products. This will undoubtedly help to promote Ukrainian goods to Canadian buyers and retailers “, – said Olga Shtepa, CUTIS project coordinator.

The Canada-Ukraine Trade and Investment Support (CUTIS) project is a 5-year (2016-2021) Canadian development assistance initiative designed to increase exports from Ukraine to Canada and investment from Canada to Ukraine. The project funded by the Canadian Government through the Global Affairs Canada and implemented by the Conference Board of Canada in partnership with the Canada-Ukraine Chamber of Commerce.

Apparel is one of the priority areas for the project. CUTIS implements U CAN EXPORT Support Program in five priority sectors: clothing, footwear, furniture, confectionery, and IT services.

In August 2018, with the assistance of the project, eight Ukrainian apparel manufacturers took part in the international exhibition Apparel Textile Sourcing Canada, which united more than 500 apparel manufacturers from more than 20 countries.

In July 2019, Ukraine House Toronto official opening guests enjoyed the Fashion Show of six famous Ukrainian apparel companies. RITO and Andre Tan companies, which participate in CUTIS export support program U CAN Export, also took part in the show and presented their latest collections.

11 agri-food producers represented Ukraine at SIAL Canada

On April 30th – May 2nd Toronto hosted the only Canadian national tradeshow offering up a complete range of food products, food-related equipment, and technologies – SIAL Canada. Enercare Centre gathered under one roof more than 1,000 exhibitors from 50 countries. Among this variety of tastes, there were showcased 11 Ukrainian producers united under the brand Made In Ukraine.

That was the second confectionery mission of Ukrainian food companies in Canada arranged by the CUTIS project. And this time, thousands of buyers met not only the new names but previously known products as well.

‘This year, Made In Ukraine was outstanding! Made In Ukraine expanded from confectionery and chocolate to include bulk, traditional and organic products. The Ukrainian merchandise received excellent reviews from North American (Canadian and USA) buyers and retailers, offering very competitive prices, top quality brands and attractive packaging,’ – Canadian expert Bertrand Walle said.

Ukrainian products were presented in two categories:

Chocolate, Confectionery, Cookies, Wafers and Crackers:

Honey, Organic Berries, Cereals & Edible Oils:

The mission for Ukrainian companies wasn’t limited by only showcasing in the SIAL show. The participants got useful tips on how to sell their products during the info sessions and visited a number of local grocery stores during retail familiarization tour.

The Canada-Ukraine Trade and Investment Support (CUTIS) Project is a 5-year (2016-2021) Canadian development assistance initiative designed to lower poverty in Ukraine through increasing exports from Ukraine to Canada and investment from Canada to Ukraine.

The CUTIS project implements U CAN EXPORT Support Program in five priority sectors: clothing, footwear, furniture, confectionery, and IT services.