News Tag: exports to Canada
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).

How to systemize your business. Practical advice for SMEs – webinar

The CUTIS project, in partnership with the Canada-Ukraine Chamber of Commerce, held a  webinar with Colleen Krebs, Manager of Business Services, Women’s Enterprise Centre of Manitoba (Canada).

Colleen Krebs completed her bachelor’s degree in marketing and immediately launched her entrepreneurial pursuits in the coffee, construction, and renovation industries. She operated a successful café for over eight years managing all aspects of the business including product/service development, H/R, sales, operations planning, and inventory management.

In 2008 Colleen joined the Women’s Enterprise Centre of Manitoba where she is currently Manager of Business Services. She continues to inspire and motivate women to pursue their own entrepreneurial dreams by drawing upon her expertise as a skilled facilitator, business advisor, and passionate interpersonal connector.

You can download Colleen’s presentation via the link 

During the webinar participants:

  • Understood what systems are and why they are critical to your business success
  • Understood the benefits of having a systemized business
  • Understood how integrating systems affect business outcomes
  • Learnt more about the mindset and approach entrepreneurs should adopt when apply change to their business
  • Walked though the “how to” implement systems that stick.

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 

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.

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.

Entrepreneurs from Slovyansk discussed how to overcome barriers in women-led businesses

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 4, in cooperation with the Donetsk Chamber of Commerce and Industry, the first #SheChampion seminar was held in Slovyansk, bringing together more than 20 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.

Natali Ivanova, Women’s Entrepreneurship Development Activities Coordinator by Donetsk Chamber of Commerce and Industry, welcomed the participants of the event. She described what kind of activities the Committee of Women’s Entrepreneurship conducts.

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.

Two successful businesswomen – the founder of Praniville creative workshop Natalia Rak and owner of AB.Zabava Art ceramics & art workshop Hanna Butko shared their experience of creating a business from the very beginning. The stories of women are quite illustrative as they both were forced to start over because of the armed conflict in eastern Ukraine.

In 2014, Natalia Rak moved from the occupied part of Donbas to Druzhivka where she started making cookies. Trial consignments were bought by friends and acquaintances. Now, prianivil.in.ua is an established small business specialized in unique recipe confectionery. The company is considering expanding its product line.

Until 2014, Anna Butko worked in a consulting firm. After the company ceased its operations, the woman had to find other ways to make her living. She found comfort in her creative work. Anna began to study the secrets of pottery. Now AV.Zabava Art products are known in many countries of the world, including Ukraine, the Czech Republic, and Poland.

Kateryna Vitkovska, trainer, discover the secrets of successful work on the Etsy online platform. Kateryna created her own KvitkaBags brand and sells textiles and handbags all over the world. Kateryna Vitkovskaya also told about reputational risks for sellers, which may entail refusals of sales, negative feedback, etc.

In the second part of the event, the participants had the opportunity to improve their recruiting skills – Vira Porovska held a master class on attracting new specialists to the company.

Resource World Magazine highlighted mining in Ukraine

Resource World Magazine – one of the leading media in the business of mining, oil, gas and green technologies with subscribers in 46 countries published the outputs of the Mining in Ukraine conference, organized by CUTIS Project and the Canada-Ukraine Chamber of Commerce (CUCC) within the framework of PDAC Convention on March 2nd, 2020 in Toronto.

The editor Ellsworth Dickson wrote an article about activities of the state-owned Ukrainian exploration company “Nadra Ukrayny”, represented at the conference by the Chairman Taras Kuzmych.

Please read the whole article below:

Ukraine state exploration company seeking partners

By Ellsworth Dickson

In a presentation at the recent Prospectors and Developers of Canada Convention in Toronto, Canada, Taras Kuzmych, Chairman of National Joint Stock Company (NJSC), Nadra Ukrany, outlined the many activities of the state-owned Ukrainian exploration company.

The company carries out geological exploration and invests in projects in the exploration and production sector in the country – mostly oil and gas projects but some mineral projects as well.

Although Nadra Ukrany has been in existence in one form or another for about 80 years, the current state company was formed in 2000 “….to improve minerals supply for country’s needs [and] to reserve and increase geological enterprises’ potential.”

Considering the tumultuous events Ukraine has had to endure during the 20th century, it is remarkable that the NJSC has explored over 1,800 oil fields, discovered over 350 hydrocarbon deposits, drilled over 1,000 wells and added 2.9 billion tons of fuel reserves with the result that both state-owned and private enterprises represent about 95% of hydrocarbons in Ukraine.

The company has noted that these include hundreds of oil and condensate deposits such as: Shebelinske, Yablunivske, Radchenkivske, Sahaydatske, Mihaylivske, Rybalske, Anastasiyivske that have been discovered, tested and put into operation.

Recently, the NJSC has been modernizing its corporate structure and auditing its Joint Activity Agreements. The company is currently offering a selection of blocks, minerals and cooperating frameworks to investors covering the entire country. Bidding by investors is competition based.

For the oil & gas sector, the NJSC is involved in geological exploration, field development and analysis of wells, environmental monitoring and impact analysis R&D, laboratory studies of core, drilling mud and related activities, including engineering and geological research.

Nadra Ukrany has also been involved with exploring and developing various mineral commodities, including the Dashukivske clay deposit, Muzhiyivske gold and polymetallic ore deposit, coal deposits of the Lviv-Volyn coal basin, native sulphur and potassium salt deposits in the Carpathian region of Ukraine, the Dnieper brown coal basin, the Klintsy native gold deposit (the first Ukrainian gold was extracted out of its ore), and even mineral waters as Naftusya, Morshinska, Polyana Kwasova and Shayanska, as well as numerous deposits of decorative and construction brick.

There are several ways foreign investors can participate such as a Production Sharing Agreement (PSA), a Production Enhancement Contract and Joint Activity.

One example that is available is a farm-in PSA opportunity in the Oleska Oil and Gas Project in western Ukraine. This would involve E&P of conventional and unconventional hydrocarbons. Other oil & gas opportunities are also available.

There are also partnership opportunities for mineral development as well, including titanium in the Zhytomyr region, zirconium in the Krasnorichenske ilmenite field and zirconium, vanadium and scandium in the Paromivske ilmenite field. Scandium is a rare and valuable metal capable of increasing the strength of aluminum to that of steel, making the alloy especially useful for aircraft applications.

Blessed with petroleum and mineral wealth, Ukraine is keen on developing its natural resources and is welcoming foreign investors to participate in a variety of projects.

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.