News Tag: export to canada
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.

SheChampion: women entrepreneurs from Ivano-Frankivsk region discussed barriers in business and trade

Women entrepreneurship is often faced visible and/or invisible barriers. They may be related to external factors such as business development or entrance the international markets as well as internal barriers, for example, gender stereotypes in Ukrainian society.

To overcome these barriers and create a space for communication and knowledge sharing, a series of #SheChampion seminars is being organized by the CUTIS project in cooperation with regional chambers of commerce and industry.

The first meeting, held on April 11 in Ivano-Frankivsk, united more than 40 businesswomen, public organization representatives, and local authorities.

During the meeting, Vira Porovska, a gender expert of the CUTIS project presented a gender-based analysis of export barriers for small and medium-sized women businesses in 5 industries (apparel, footwear, confectionary, furniture, and IT services). Ms. Porovska also paid attention to those spheres where the number of women entrepreneurs is negligible.

Yevhen Sozansky, partner of Xtheta Management, an official partner of the Shopify platform, made an overview of international e-commerce and presented the platform’s capabilities for small business development.

Ostap Pavliuk, owner of West Trade Group (medicinal plants) shared his own experience in developing exports to new challenging markets.

Similar events are planned in other regions of Ukraine. Next seminar will be in Chernigiv. Do not miss your chance!

Ukrainian Export Commodities Benefiting from the FTAs between Ukraine, Canada and the EU

The Ministry of Economic Development and Trade of Ukraine in partnership with the Canada-Ukraine Trade and Investment Support Project (CUTIS) and the European Business Association presented a report “Ukrainian Export Commodities Benefiting from the FTAs between Ukraine, Canada and the EU” on February 15.

The research was conducted by the experts of the Ministry of Economic Development and Trade and the SE “Ukrainian Industry Expertise”, and supported by the CUTIS project.

According to CUTIS Project Director Brenda Lafleur, the main goal of the research was to support the development of Ukrainian export to Canada. ‘I met the authors of the report in Canada during their visit to Ottawa. In Ottawa they worked with the experts from The Conference Board of Canada. I am sure the results of the research will help Ukrainian businesses to find business opportunities and new niches both in the Canadian and European markets,’ Brenda Lafleur said.

Svitlana Mikhailovska, Deputy Director of EBA, paid attention to the importance of export diversification for Ukrainian business.

‘The results of the research help to identify the Ukrainian export commodity groups benefiting from three free trade agreements: between Ukraine and the EU, Ukraine and Canada, Canada and the EU. These trade agreements allow Ukrainian producers to import raw materials or export their products on preferable terms, mainly without paying any customs tariffs,’ Maxim Boroda, Senior Trade and Investment Analysis Expert at CUTIS said.

The research consists of two stages. At the first stage, Ukraine’s participation in value-added chains under FTAs between Ukraine, Canada, and the EU was analyzed. At the second stage, Ukrainian exports commodities benefiting from potential rules of origin cross-cumulation between Ukraine, Canada, and the EU were determined.

The research analyzed three possible value-added chains:

Option 1. A company imports raw materials from the EU, produces products in Ukraine and subsequently exports them to Canada. According to this business model, there are nine Ukrainian commodities benefiting from the FTA between Ukraine and the EU (DCFTA) and/or the FTA between Ukraine and Canada (CUFTA). In particular, apparel (including costumes), rubber and plastic products, and some machine engineering positions.

Option 2. A company imports raw materials from Canada, produces products in Ukraine and exports to the EU. According to the second business model, there are six Ukrainian commodities benefiting from the DCFTA and CUFTA. In particular, rubber and plastics, footwear, and some machine engineering positions.

Option 3. An EU based company imports raw materials from Ukraine and exports commodities to Canada. There are 28 Ukrainian commodities benefiting from the DCFTA and the CUFTA (mining, chemical industry, metallurgy, and machine engineering).

‘Although cross-cumulation is a theoretical opportunity at the moment, there are few successful cases of Ukrainian companies using preferable terms from both free trade agreements – the DCFTA and the CUFTA,’ Olzhana Rukas, Deputy Head of the Division of Regional and Preferential Trade Agreements, Department of Market Access and Cooperation with WTO, Ministry of Economic Development and Trade of Ukraine mentioned.

For example, one Ukrainian apparel producer, participating in the U CAN Export program of the CUTIS project, imports raw material from the EU and exports clothes to Canada.

Serhiy Kovaliov, Deputy Director of the Department of Export Development, Ministry of Economic Development and Trade of Ukraine summarized: ‘The research helps the Ministry not only to lay out priorities for Ukrainian exports promotion to Canada and the EU markets, but also to find out the best opportunities for investment in/outsourcing of production in Ukraine.’

To download the presentation please use the link

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.

Ukraine has doubled the export of agricultural products to Canada – Olga Trofimtseva

The prospects of trade development and cooperation between Canada and Ukraine were discussed during a meeting between the representatives of the Ministry of Agrarian Policy of Ukraine and Ambassador of Canada to Ukraine Roman Waschuk.

Ukraine has increased the export of agricultural products to Canada almost twice. According to the acting Minister of Agrarian Policy Olga Trofimtseva, Ukraine exported agricultural products to Canada in 2018 in the amount of $ 9.9 million, while in 2016 it was only $ 4.9 million.

Import of agrarian products and food from Canada was estimated at $ 49.9 million in 2018. “Again, as I often point out, these figures are too small and do not reflect the opportunities of bilateral trade in agribusiness among our countries. Therefore, the main directions of work for us in the near future are increasing trade volumes and diversification, “Olga Trofimtseva said.

Ukrainian producers have substantially expanded the export of agrarian products in certain areas, in particular:

  • juices – $ 5.7 million (↑ 140%)
  • chocolate – $ 330 thousand (↑ 40%)
  • sugar confectionery – $ 160 thousand (↑ 32%)
  • water with sugar – $ 260 thousand (↑ 50%)

According to Olga Trofimtseva, in 2018, thanks to the Canada-Ukraine free trade agreement (CUFTA) Ukraine started to export to Canada such products as:

  • corn
  • dried fish
  • frozen fruits and vegetables
  • dried vegetables
  • some oilseeds.

“My position is that trade is only part of bilateral cooperation in the agricultural sector. Therefore, the important issues in cooperation between Ukraine and Canada will be projects in the field of education and research, including such areas as bioeconomy and green economy, as well as cooperation in the field of agrotechnologies, “- Olga Trofimtseva said.

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 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.

Export training to Canada was held in Kherson

A training session “How to export to Canada” was held on December 6 in Kherson. The event was organized by the Kherson Chamber of Commerce and Industry in cooperation with the CUTIS project.

Canada-Ukraine Trade and Investment Support Project (CUTIS) in cooperation with regional chambers of commerce and industry has launched a series of a training seminar for small and medium-sized businesses (SMEs).

The main goal is to tell the business about the prospects of export to Canada and the new opportunities opened by the Free Trade Agreement between Canada and Ukraine (CUFTA).

The training in the Kherson has brought together about 30 entrepreneurs from such industries as agriculture and consumer products, clothing, and footwear industry, chemical industry, industrial equipment, IT services, etc.

During the program, the following issues were discussed: development of the export strategy, searching for partners in the Canadian market, tariff and non-tariff regulation of export supplies to Canada, logistics, development of marketing strategy, use of e-commerce tools etc.

In training took part:

  • Zoya Pavlenko, environmental expert, CUTIS project
  • Valentina Udod, First Vice-President of the Kherson Chamber of Commerce and Industry
  • Larisa Ponomarenko, Head of the Center for International Cooperation of the Kherson Chamber of Commerce and Industry
  • Oksana Fedotova, Certification and examination department of the Kherson Chamber of Commerce and Industry

To get more information about training sessions please follow Facebook page of the CUTIS project (https://www.facebook.com/CUTISproject/). Do not miss the training in your city!