News Tag: Україна
Ukrainian footwear producers have made a breakthrough in the Canadian market

Six leading Ukrainian footwear producers took part in the Toronto Shoe Show on February 20-22. Overall more than 700 Canadian and European brands participated at the international exhibition.

Ukrainian shoe industry was presented by such well-known trademarks as:

  • Belsta (Bilhorod-Dnistrovsky, one of the largest producers of indoor footwear in Ukraine);
  • Caman (Brovary, stylish men’s and women’s shoes, specialized sports shoes);
  • KaDar (Lutsk, casual men’s shoes);
  • Kredo (Khmelnytskiy, winter shoes on EBA sole);
  • Litma (Khmelnytskiy, rubber footwear);
  • Olteya (Zhytomyr, women’s leather shoes).

Ukrainian producers have already taken part in the Toronto Shoe Show last August.  It has prompted the companies to work more seriously, and with greater dedication and better preparation. They took into account all the recommendations of Canadian expert of the CUTIS project Phil Zwibel and upgraded the models.

‘Five of six Ukrainian producers have already delivered their samples to Canadian buyers, now three deals are almost on a finish line. That’s a wonderful achievement after only 6 months of appearance in Canada. Because in order to succeed in North America you have to modify your products according to the market and customers preferences. I’m glad that Ukrainian producers overcame this way to consumers in such a short time,’ Phil Zwibel said.

Ukrainian companies were presented at Toronto Shoe Show under the export support program “U CAN Export” of the CUTIS project.

‘Free trade with Canada opens up new business opportunities for Ukraine which faces the challenge of diversifying export flows. The example of footwear producers demonstrates that Ukrainian product is a great combination of high quality and reasonable prices,’ Ihor Sanzharovsky, CUTIS Project Director in Ukraine concluded.

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.

The Council for International Trade discussed the results of the Canada-Ukraine Free Trade Agreement

As part of the meeting of the Council for International Trade, the results of the first year of implementation of the Canada-Ukraine Free Trade Agreement (CUFTA) were discussed. CUFTA opened for Ukrainian exporters duty free access to 98% of the Canadian market.

According to First Deputy Prime Minister – Minister of Economic Development and Trade of Ukraine Stepan Kubiv, the free trade zone has a positive impact on the development of mutual trade. Exports of Ukrainian goods to Canada in 2017 amounted to almost 130 million USA dollars. Growth in comparison to the previous year- 36.8%.

“We are talking about the Free Trade Area as a fact, achievement, and victory. We are currently working within the framework of the triangle: Ukraine-Canada, Ukraine-EU, Canada-EU “, – said Kubiv.

According to him, the free trade zone allows not only to increase the export of Ukrainian goods to Canada, but also to contribute Canadian investments in Ukraine. In the first quarter of 2018, more than $5 million was invested by Canadian business.

Ambassador of Canada to Ukraine Roman Waschuk noted that Canada has been fruitfully working with Ukrainian authorities to strengthen trade cooperation.

“The main thing is that we see an expansion of the range of Ukrainian products exported to Canada. Within the framework of the Canada-Ukraine Trade and Investment Support Project, the priority sectors with the largest potential in the Canadian market were selected. Several exhibitions in Canada have already been held in which Ukrainian companies took part, in particular, furniture, footwear, clothing and confectionery products”, the ambassador said.

It is also worth noting that Canadian investors are interested in the Ukrainian IT market. The Canadian company Brookfield Asset Management is developing IT park in Lviv. IT park will start working in 2.5 years. It is planned that the object will occupy more than 10 hectares. The volume of investments – more than 160 million USA dollars.

“The realization of this project demonstrates that the Ukrainian IT sector is already mature and is ready to implement such large-scale projects,” the ambassador noted.

Deputy Minister of Agrarian Policy and Food Olga Trofimtseva noted that despite skeptical expectations regarding the implementation of the Free Trade Agreement with Canada, it works, including in the agricultural and food segments.

“The trade balance of the agricultural sector is still negative. Ukraine purchases more agricultural and food products in Canada than Canada in Ukraine. But there are positive dynamics of supplies from Ukraine. The range of exporting products is expensing, in particular in such areas as oil, juices, honey, and sugar”, she said.

The Canada-Ukraine Free Trade Agreement (CUFTA) came into force on August 1, 2017.