News Tag: international trade
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.

Online sales on the ETSY platform: how to succeed – webinar

The CUTIS project and the Canada-Ukraine Chamber of Commerce hosted a webinar with Kateryna Voylova, a woman entrepreneur and a business coach who leads the largest team of Ukrainian sellers on the Etsy platform.

Kateryna is the founder of the training community on Facebook and a woman entrepreneur (the Galvan-art store). For more than four years, Kateryna has been teaching courses on business development through the Etsy platform. She is leading in Etsy Ukrteam – the largest team of Ukrainian sellers on the Etsy platform.

In the program:

  • How to open a new store on Etsy
  • COVID-19 pandemic: challenges and opportunities in quarantine and post-quarantine period on Etsy platform
  • How to properly prepare your business for the High Season
  • Prospects for online business in general and Etsy business in particular.

Webinar recording 

 

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.

CUTIS buttresses the development of Ukrainian exports and trade in services

Trade in services is a dynamic area where new and non-conventional negotiating instruments and techniques emerge (e.g., ‘negative’ and ‘hybrid’ listing approaches, ‘standstill’ and ‘ratchet’ clauses, etc.). Therefore, it is vitally crucial for Ukrainian services negotiators to strengthen their negotiating capacities and skills with the new/emerging negotiating instruments and techniques.

On May 22, the CUTIS project held a webinar for government officials on negative listing scheduling techniques in trade in services.

The event is intended to refresh participants’ memory of how services are traded and delve into the peculiarities of the ‘negative listing’ technique, which is new for Ukraine.

The webinar was addressed by Pietro Poretti, an independent trade consultant, a member of the Secretariat of the European Free Trade Association (EFTA) and a participant in the negotiation process of free trade agreements in the past.

Pietro provided the participants with the knowledge and techniques to schedule commitments for service sectors or sub-sectors under the so-called ‘negative listing approach’. He drew the difference between ‘positive’ list (traditional under the GATS), ‘negative’ list (e.g., CETA), and ‘hybrid’ approach (e.g., TiSA).

The CUTIS project expects that new knowledge prepare Ukrainian officials for the negotiations on services as well as to buttress the capacity of Ukraine’s representatives in current FTAs negotiations with other countries.

How to export IT services to Canada – webinar

The Greater Toronto Area is considered to be one of the world’s main high-tech hubs rated next to the Silicon Valley of California, Boston, Seattle and Washington in the United States.

There is a growing demand for IT professionals in the Canadian market. Approximately 216,000 new jobs will be created in the sector by the end of the year 2021. Due to immigration and the involvement of students from Canadian universities, the country will be able to meet only 30% of these needs.

Thus, the conclusion is obvious: Canadian companies will look for opportunities to attract foreign professionals and companies. And this is an excellent chance for Ukraine!

The CUTIS project and the Canada-Ukraine Chamber of Commerce hold a webinar “Export of IT services to Canada: presentation of the export manual and recommendations from practitioners.” Information partner of the event – IT Ukraine Association.

Maxim Boroda, CUTIS Ukrainian Senior Trade Analysis Expert, told about key parameters and trends in the Canadian ICT market (download the presentation).  

Oleksandra Brovko, CUTIS Ukrainian Senior Trade Policy Expert, analyzed the main conditions and requirements for the export of IT services to Canada (download the presentation).

Features of Canadian business culture and marketing activities in Canada were discussed during the presentation of Olga Shtepa, CUTIS Ukrainian Project Coordinator (download the presentation).

John de Boer, SecDev Group Principal, paid attention to new opportunities for the Ukrainian companies in the Canadian IT market in the time of COVID-19 (download the presentation).

Igor Volzhanin, СЕО DataSine, shared his experience in fundraising, business culture and digital customer acquisition (download the presentation).

📌 Download the guide “I Can Export: How to export information and communication technology (ICT) services to Canada” via the link (in Ukrainian).

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.

Ukrainian women entrepreneurs in Paris – a new chapter of the SHEforSHE mentorship program

With the support of the CUTIS project, three Ukrainian women entrepreneurs Olesya Timoshyk (TimiTex), Eugenia Lukash (Evgakids) and Kateryna Volkova (Sasha) participated in the largest French textile and apparel exhibition, which took place in Paris from February 10 to 13. That was part of the CUTIS SHEforSHE mentorship program aiming to support the development of women’s businesses in Ukraine and promote their products in foreign markets.

One other Ukrainian company, Jenadin, a knitwear manufacturer, participated in the exhibition catwalk.

The mentor of the SHEforSHE program is Maria Terekhova from Trade House New Fashion Zone, who already has successful experience in promoting Ukrainian apparel in foreign markets.

“For us, as a company that is just planning to enter international markets, participating in such exhibitions is a necessary and very important step. It is an opportunity, at the least, to feel the needs of the market and the requirements for manufacturers, and, at the most, to find new customers”, Olesya Tymoshyk from Chernihiv said.

For Eugenia Lukash (Kherson), founder of Evgakids online children’s clothing store, a trip to Paris also became the first experience of participating in an international apparel exhibition.

‘We are very grateful to the CUTIS project for this opportunity. The Apparel Sourcing Paris is so impressive. We are proud that our first international exhibition is the biggest garment sourcing show in Europe with more than 600 exhibitors from all over the world,’ Eugenia Lukash noted.

According to Kateryna Volkova from Slavutych, who produces children dresses under Sasha trademark, participation in the Apparel Sourcing Paris was a great opportunity to expand to new markets, establish contacts with new partners and present new products.

Jenadin’s participation in the catwalk has become a real highlight of the event. The Ukrainian knitwear producer was highly appreciated by the Parisian public. This success is significant for the producer given the fact that it was the first time for Jenadin to demonstrate its models at such a top international fashion show.

‘I’m very happy that we could present our collection, and also represent Ukrainian manufacturers at the Apparel Sourcing Paris. I want to thank the CUTIS project for giving us this opportunity and unbelievable experience,’ Jenadin CEO Nadiia Koziarivska said.

Maria Terekhova gave a presentation at the Apparel Sourcing Paris regarding benefits that international partners may have working with Ukrainian apparel companies. Maria made a brief overview of the Ukrainian apparel market and spoke about the specifics of searching a business partner in Ukraine.

“Events such as the Apparel Sourcing Paris exhibition are a great opportunity to present Ukraine as an interesting partner for private label production and fruitful cooperation with international retailers. During the event, we got acquainted with African and Latin American buyers. It’s a whole new negotiation experience for us”, Maria mentioned.

According to Olga Shtepa, CUTIS project coordinator, the participation of four Ukrainian companies in the international exhibition in Paris once again confirmed the opinion that Ukrainian companies are fabulous.

‘Businesses are usually established by intuitively searching for potentially profitable market niches and creating products suitable for their founders, but in a very short time, they may grow to the level of a national manufacturer, or even higher. They start planning strategic export activities, creating new jobs and conquering international podiums. Therefore, it is a pleasure to be part of the CUTIS project and the SHEforSHE mentorship program aiming to help grow such businesses and support their efforts to enter the global arena, ‘Olga Shtepa summarized.

SHEforSHE Mentorship Program: CUTIS Project brings women’s businesses to a new level

In 2019, the CUTIS project presented a gender-based analysis report on the export challenges of Ukrainian small and medium-sized enterprises (SMEs). The main objective of the study was to identify gender-based challenges of women-owned or -led enterprises in exporting and provide recommendations on reducing these barriers.

The report confirmed that traditional gender stereotypes hinder women’s advancement in business. The survey participants indicated that permanent access to mentoring and professional development is an important element of success in building their own business.

This is how the idea of CUTIS introducing a SHEforSHE Mentorship Program came about with the aim to support development of women’s businesses in Ukraine and promote their products in foreign markets, primarily, in Canada.

TM SASHA (children’s dresses) production

Two mentors, who already have successful experience in promoting products in foreign markets, were selected. They are Maria Terekhova (Kyiv, New Fashion Zone platform) and Ruslana Rymarska (Lviv, Smakuli cookies), participants of our U CAN Export Support Program for Ukrainian SMEs.

In partnership with the Regional Chambers of Commerce, two teams of participants were formed. The following factors were taken into account during the selection: business development dynamics, availability of an interesting product (or prospects for its creation), export potential, and most importantly, readiness for change and implementation of ideas developed during their participation in the program.

The first team headed by Maria Terekhova as mentor included the following mentees: Olesya Tymoshyk (Chernihiv, children’s clothing TM “TimTex”), Kateryna Volkova (Slavutych, TM SHUBA (home and baby textiles) and TM SASHA (children’s dresses) and Yevhenia Lukash (Kherson, EvgaKids children’s clothing Internet store).

Maria Terekhova and Kateryna Volkova

 

The second team consisting of mentees Halyna Ishchak (Ivano-Frankivsk, private entrepreneur, cakes and biscuits) and Iryna Fishchuk (Ivano-Frankivsk, private entrepreneur, confectionery) is headed by Ruslana Rymarska.

Meeting of Ruslana Rymarska and potential participants of the program

 

As Kateryna Volkova shared, the mentor visited the enterprise in Slavutych as part of the cooperation. During the meeting, the main challenges facing the company and complexity of entering new markets were discussed and a plan for further cooperation was developed. Every week, the mentor and the mentee discuss implementation of the developed plan of changes via Skype.

Children’s dresses TM SASHA

 

“There were a lot of issues that I have been trying to solve over the years. I found some of the answers to these questions myself, and of some with the help of Maria Terekhova, my mentor. It became clear to me that in order to work effectively in foreign markets, the company needs an export specialist. Finding one requires additional time and financial resources. Then the idea came up: why wouldn’t I master a new profession myself? This is exactly what I am focusing on now”, – Kateryna shares her experience.

According to Olesya Tymoshyk (TM “TimiTex”), while working with her mentor, she was able to modernize the design of clothes for the nursling to find a new client (B2B) and a new supplier of fabrics that she is currently negotiating with.

New product

 

“When you have been working for a long time, you get used to the technological process, your models, and you do not always understand the need for change. It is difficult to stop, figuratively speaking, step aside and watch the company without sentiment. This is where you need external experts with new, different, broader experience and knowledge, who immediately see what needs to be changed, improved, removed or added. Maria Terekhova is an expert with whom I was fortunate to work in one team. Her excellent experience, contacts and resources enhance our business and drive us to grow”, – says Olesya.

We wish our mentors and mentees further success in the development of Ukrainian women’s businesses. We will keep you informed of further achievements of these dynamic women entrepreneurs!