News Tag: угода про вільну торгівлю з Канадою
Top-5 interesting facts about international trade between Canada and Ukraine

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?

  1. 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.
  2.  In 2019, Canada supplied 70% of Ukraine’s total imports of frozen crustaceans, cold‑water shrimps and prawns.
  3. In 2019, Ukraine also imported from Canada almost half of the prepared cranberries (46% of total imports) and 20% of diamonds.
  4. Canada’s imports from Ukraine that have expanded the most include iron and steel, electronics, and preparations of vegetables.
  5. 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.

You can find more information via the link.

How to prepare for a virtual trading mission – video

The COVID-19 epidemic is making adjustments to export activities. 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.

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.

A properly prepared and successfully conducted virtual meeting is a guarantee of mutually beneficial business relations in the future. Everything is like in a theatre 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.

Olga Shtepa, CUTIS project coordinator, who has huge experience in organizing virtual negotiations with Canadian business, explains how to properly prepare for participation in a virtual trade mission and what kind of challenges you may face (in Ukrainian).

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 

 

Ukrainian companies may attend the largest Canadian apparel virtual tradeshow for free

On May 25-29, the Apparel Textile Sourcing (ATS) exhibition, one of the largest international apparel and textile sourcing events, is holding the world’s first VIRTUAL tradeshow.

ATS-Virtual will connect apparel & textile manufacturers and buyers, all currently restricted from international travel. Over 2M international buyers & brands invited to attend.

Ukrainian companies may attend the tradeshow FOR FREE.

The attendances will get:

  • Free sourcing, education, matchmaking & more.
  • Interactive seminars from apparel & sourcing industry experts.
  • Five show days & 24/7 access for a month after the event.
  • Exhibits from North America, Latin America, Europe, Asia & the Middle East.
  • Live chats, virtual networking, engagement made simple.

The manufactures may have their own booths at the ATS-Virtual. The costs are 1/3 the price of traditional trade show booths.

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.

Practical recommendation to establish successful business relationships with Canadian buyers – webinar

The CUTIS project in partnership with the Canada-Ukraine Chamber of Commerce and the Canada Export Promotion Office (TFO Canada) held a webinar with the participation of Maria Guzman, TFO Canada apparel market expert and CUTIS projects consultant.

The main objective is to provide comprehensive and practical guidance on the requirements for the sale of clothing in Canada and to facilitate the process of finding partners in this market for Ukrainian companies.

The following questions were discussed during the webinar:

  • Features of the Canadian clothing market
  • Recent fashion trends in the market
  • How to interact with potential buyers
  • How to successfully build a business relationship
  • How to present your product successfully
  • How to calculate export prices and negotiate with Bayer
  • How to calculate the cost of logistics
  • Basic requirements for product labelling

Part 1 video 

Part 2 video 

You can download Maria’s presentation via the link.

You can download the webinar Summary via the link.

CUTIS trade mission: Ukrainian footwear companies produce trial samples for the Canadian market

The CUTIS project and the Canada-Ukraine Chamber of Commerce organized a visit to Ukraine of Canadian TellTrading Co Ltd company representatives interested in finding reliable footwear suppliers for the Canadian market.

Danny DaSilva and Bruce Mowday met with four Ukrainian companies that are already exporting or seeking to export shoes to Canada, and have visited manufacturing facilities:

  • Olteya (Zhytomyr, women’s leather shoes)
  • Stepter (Lviv region, men’s and women’s shoes)
  • Kredo (Khmelnytsky, winter shoes with EVA soles)
  • Zirka Manufacture Factory (Cherkasy region, children’s, men’s and women’s shoes)

Olteya, Stepter and Kredo companies are members of the U CAN Export support program for small and medium enterprises interested in exporting in Canada. With the support of the project, the companies have repeatedly participated in Canada’s largest shoe exhibition – the Toronto Shoe Show.

The Canadians also visited the Kachorovska Atelier, which specializes in customized shoe and handbags making, and held a meeting with its owner.

Emma Turos, Executive Director of the Canada-Ukraine Chamber of Commerce in Ukraine and CUTIS project manager is pleased with the results of the visit of Canadian buyers.

‘The Canadian footwear industry representatives highly estimated the Ukrainian manufacturers – the quality of products, interesting portfolios, and modern equipment. Three Ukrainian footwear companies got trial orders from Canadian partners,’ Emma Turos said.

According to her, positive results were achieved through the collaboration of shoe manufacturers with CUTIS project experts.

‘The selected companies have already intimate knowledge of the Canadian market specifics, as they have been working with experienced Canadian specialist Phil Zwibel for three years. The companies participated in Canadian exhibitions, got acquainted with the local footwear market and consumer preferences, met with leading Canadian manufacturers, constantly improved and adapted products as well as optimized prices according to the advice of CUTIS experts. For example, waterproof footwear lines have been developed which are in high demand in Canada,’ Emma Turos explained.

We hope that trial samples will be the beginning of fruitful cooperation, and we look forward to a positive outcome.

CUTIS held an export forum for apparel and footwear manufacturers interested in trade with Canada

The CUTIS project and the Canada-Ukraine chamber of commerce held a practical export forum in Kyiv for Ukrainian companies interested in exporting apparel and footwear to Canada.

During the event, participants had the opportunity to learn more about the Canadian footwear and apparel market, get acquainted with specific features of product promoting in Canada and communicate with Canadian experts who have huge experience in cooperation with Canadian buyers and distributors. The forum brought together about 50 small and medium enterprises.

Adam Barbolet, Senior Trade Commissioner of Embassy of Canada to Ukraine welcomed the guests.

‘Canada has been and remains a reliable partner of Ukraine. The Free Trade Agreement between Canada and Ukraine (CUFTA) came in force in 2017 and has visible results in terms of trade growth between countries. For example, Ukraine has become one of the leaders of apple juice suppliers in Canada.

We are interested in further economic cooperation with Ukraine. We do hope that more and more Ukrainian small and medium-sized enterprises will be able to export their goods to Canada. We want to see these products in the Canadian market, we want to help Ukrainian business to be successful in the Canadian market,’ Adam Barbolet said.

Emma Turos, Executive Director of the Canada-Ukraine Chamber of Commerce in Ukraine and CUTIS project manager spoke about the CUTIS export portal, which will provide relevant information to Canadian and international businesses seeking reliable Ukrainian partners.

Olga Shtepa, CUTIS Project Coordinator, drew the attention of the event participants to the specifics of the Canadian business culture (download the presentation via the link). In particular, Olga Shtepa named 5 essential components for successful exports to Canada:

  • Website in English (native English)
  • Detailed costs and prices information
  • Farewell to stereotypes
  • Getting rid of misconceptions about your product or service
  • Professional presentation of own products/services

Maxim Boroda, CUTIS Senior Trade and Investment Analysis Expert, told about features, trends, and consumer preferences in the Canadian apparel & footwear market.

In 2018, Canadians spent CAD 36 billion on clothing. In particular, CAD 18 billion on women’s clothing and about CAD 11 billion on men’s clothing. By 2023, the total sales of clothing will reach CAD 43 billion, with an average annual growth rate of 3.4%. At the same time, sales of hosiery will increase faster than any other category.

Canadian consumers spent CAD 7.8 billion on shoes, in particular, CAD 3.7 billion on women’s shoes, CAD 3.1 billion on men’s and CAD 1 billion on children’s shoes. By 2023, total footwear sales will reach CAD 9.5 billion.

Sales of man’s footwear will grow faster than other categories. The reason is the increase of men’s interest in fashion trends, especially among young people, as well as the liberalization of the office dress code.

Oleksandra Brovko, CUTIS Senior Trade and Investment Policy Expert, clarified regulatory and labeling requirements for Ukrainian goods in the Canadian market. She drew the attention of the participants to the rules of origin.

Oleksandra Brovko noted that the rules of origin in the CUFTA are based on the so-called North American model, and therefore sometimes different from the rules of origin contained in other free trade agreements between Ukraine and the European and post-Soviet countries.

Zoia Pavlenko, CUTIS Environmental Expert, explained the specifics of voluntary certification of Ukrainian products for the Canadian market and argued why environmentally sustainable production practices are competitive advantages in the Canadian market.

Vira Porovska, CUTIS Gender Expert, illustrated why gender-sensitive marketing is an essential requirement of Canadian consumers.

Apparel and footwear export guides were presented during the second part of the event.

You can download apparel export guide here (in Ukrainian)

You can download footwear export guide here (in Ukrainian)

Participants also had a chance to listen to the presentations of Canadian experts as well as ask questions related to Ukrainian goods prospects in the Canadian market.

TFO Canada consultant Maria Guzman (apparel market) explained how Ukrainian producers should build mutually beneficial relationships with Canadian buyers and shared the success stories of Ukrainian companies participated in CUTIS’s U CAN Export supporting program for small and medium-sized enterprises.

TFO Canada consultant Phil Zwibel (footwear market) brought into focus the typical mistakes Ukrainian manufacturers make entering foreign markets, including Canada. The logistics issues, misunderstanding of market specifics and unwillingness to update a product to the needs of local consumers are the main challenges Ukrainian companies need to overcome.

Lviv entrepreneurs learned about new opportunities for exporting apparel and footwear to Canada

The CUTIS project, the Canada-Ukraine chamber of commerce in cooperation with Ukrlegprom association, Lviv Business School and West Ukrainian Fashion Industry Cluster held a practical seminar in Lviv for Ukrainian companies interested in exporting apparel and footwear to Canada.

During the seminar, participants had the opportunity to learn more about the Canadian footwear and apparel market, as well as to get acquainted with specific features of product promoting in Canada.

The event brought together about 30 companies specializing in women’s, men’s and children’s clothing, as well as women’s, men’s, sports and children’s footwear.

Yuriy Samets, Chairman of the Board of the Western Ukrainian Fashion Industry Cluster and Tetiana Izovit, President of Ukrlegprom association, welcomed the guests.

Emma Turos, Executive Director of the Canada-Ukraine Chamber of Commerce in Ukraine and CUTIS project manager spoke about the CUTIS export portal, which will provide relevant information to Canadian and international businesses seeking reliable potential Ukrainian partners.

Olga Shtepa, CUTIS Project Coordinator, drew the attention of the event participants to the specifics of the Canadian business culture (download the presentation via the link). In particular, Olga Shtepa named 5 essential components for successful exports to Canada:

  • Website in English (native English)
  • Detailed information on costs and prices
  • Farewell to stereotypes
  • Getting rid of misconceptions about your product or service
  • Professional presentation of own products/services

Maxim Boroda, CUTIS Senior Trade and Investment Analysis Expert, told about features, trends, and consumer preferences in the Canadian apparel & footwear market.

It’s an interesting fact, in 2018, Canadian consumers spent CAD 7.8 billion on shoes, in particular, CAD 3.7 billion on women’s shoes, CAD 3.1 billion on men’s and CAD 1 billion on children’s shoes. In 2018, shoe sales in the Canadian market have increased by 3.7% in value.

During the same period, Canadians spent CAD 36 billion on clothing, in particular, CAD 18 billion on women’s clothing and about CAD 11 billion on men’s clothing. Consequently, the women’s clothing market in Canada is almost twice the size of the men’s market.

Maxim Boroda also presented practical export guides to Canada for apparel and footwear producers.

Vira Porovska, CUTIS Gender Expert, illustrated why gender-sensitive marketing is an essential requirement of Canadian consumers.

Oleksandra Brovko, CUTIS Senior Trade and Investment Policy Expert, clarified regulatory and labeling requirements for Ukrainian goods in the Canadian market.

Zoia Pavlenko, CUTIS Environmental Expert, explained the specifics of voluntary certification of Ukrainian products for the Canadian market and argued why environmentally sustainable production practices are competitive advantages in the Canadian market.

Borys Didai, KaDar Shoe Factory (Lutsk) export manager, told about the company’s entry into the Canadian market and the challenges facing Ukrainian manufacturers in this market. You can read the full KaDar success story via the link.

Ukrainian clothing manufacturers have every reason to succeed in Canada – fashion industry expert

The CUTIS project and the Canada-Ukraine Chamber of Commerce, under the CUTIS apparel trade mission, organized a visit to Ukraine by a representative of the Canadian fashion industry who is interested in finding reliable clothing manufacturers.

Sonali Nayak, Fashion Priests president, met with representatives of five Ukrainian companies participating in U CAN Export CUTIS support program for small and medium enterprises. They are:

Fashion Priests is a relatively new company with ambitious plans. It operates in several markets (including Canada, the USA, and India), and is constantly expanding purchasing geography.

Thanks to the Conference Board of Canada and TFO Canada, Sonali Nayak also visited Indonesia with a buyers’ trade mission. ‘Ukrainian companies are more ready to enter the Canadian market, the samples and models presented by Ukrainian manufacturers may be interesting for Canadian buyers,’ she said.

‘During the mission, I had the opportunity to meet with representatives of five Ukrainian companies (from the sports swimwear and leggings producer to the outwear factory) who made a positive impression on me.

Interesting models, modern equipment, high technology, good quality fabrics, creative teams are the components of Ukrainian clothing producers’ potential success in foreign markets,’ Sonali Nayak mentioned.

‘I definitely see the prospects for further cooperation. We have to harmonize, for example, size guides, because in Ukraine and Canada they are different, to choose the optimal styles and fabrics. I hope that the Fashion Priests specialists will visit the selected Ukrainian enterprises once again in the spring and will discuss all the details as well as made trial orders’, Fashion Priests president explained. 

Thanks to the Canada-Ukraine Free Trade Agreement, Ukrainian clothing is imported to Canada without paying import duties (18% on average). This is an additional plus for business partnership with Ukrainian manufacturers.

Maria Guzman, CUTIS Canadian expert and TFO Canada consultant, advises Ukrainian manufacturers to pay additional attention to details such as size matching, curves, seam size, etc. Ignoring such things can lead to Canadian buyers refusing to make an order, even if they generally like the style and clothing model, Maria Guzman concluded.