Теги: експорт
Ukrainian manufacturers of clothing and footwear on the Canadian market: everything is just starting

The Canadian market is getting closer to Ukrainian business. According to the Ministry of Economic Development and Trade of Ukraine, Ukraine exported goods to Canada for $ 45.5 million during the first eight months of 2018. This is almost half (+ 45,8%) more than for the same period in 2017.

It is important to note the positive trend. Even 5-10 years ago that was large business that considered entering the Canadian market, while now more and more domestic small and medium-sized enterprises want to try their hand in Canada.

The growth of export performance was also facilitated by the introduction of the Canada-Ukraine Free Trade Agreement (CUFTA), which has opened up additional opportunities for domestic companies to export to the promising Canadian market. The agreement, which entered into force on 1 August 2017, in particular, provides for the abolition of import duties for 98% of Ukrainian goods.

Focus at small and medium businesses

The Canada-Ukraine Trade and Investment Support (CUTIS) Project is a powerful auxiliary tool for development of exports to Canada. CUTIS is a five year (2016 – 2021) international technical assistance 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.

Currently, CUTIS is implementing U CAN EXPORT – the first wave of the program to support exports to Canada in five priority sectors: clothing, footwear, furniture, confectionery, and the IT sector. The project focuses on small and medium-sized enterprises (SMEs), which, according to the project, have good prospects in the Canadian market.

After receiving applications from interested companies, there were two stages of selection. As a result, 8 clothing manufacturers and 8 shoe manufacturers were selected, which, in collaboration with the project, were presented in Toronto in August 2018. For the selected companies, training was conducted with the participation of leading Canadian experts. The experts accompanied the participating companies and provided them with professional advice both during the trip and during the preparation for exhibitions.

Toronto Shoe Show

Toronto Shoe Show was held in Toronto on 19 – 21 August 21. More than 700 brands of European footwear and accessories were represented at the exhibition.

Ukrainian shoe industry was presented by well-known brands:

  • Belsta (Bilhorod-Dnistrovsky, one of the largest producers of indoor footwear in Ukraine;
  • Caman (мBrovary, producing stylish men’s and women’s shoes, as well as specialized sports shoes);
  • InBlu (a joint Ukrainian-Italian company producing footwear at the Kyiv Shoe Factory);
  • KaDar (Lutsk, focusing on the production of casual men’s shoes);
  • Kredo (Khmelnytskiy, specializing in winter shoes on EBA sole);
  • Krok (Zhytomyr, one of the largest manufacturers of industrial and military footwear);
  • Litma (Khmelnytskiy, an extremely wide range of rubber footwear);
  • Olteya (Zhytomyr, specializing in the production of women’s leather shoes).

Toronto’s trade show was another proof that Ukrainian shoes are a great combination of comfort, quality and contemporary design.

What conclusions can be drawn from the exhibition?

Firstly, everyday footwear is most in demand, as it is light, flexible and comfortable. More formal models belong to the niche products. Sneakers is the most popular kind of shoes for both sexes and all age groups.

Winter boots is the most competitive segment of the footwear market, as they are a necessity in the Canadian climate. Moreover, Ukrainian producers should focus on products of high-quality raw materials. The importance of high-tech materials, such as waterproof leather, is growing.

Brand is a key factor in the footwear market for both sexes and all types of shoes: consumers generally have a high level of loyalty to shoes brands. Canadians are willing to pay a high price for good-quality branded shoes.

Therefore, it makes sense for Ukrainian companies to look closer at the possibility of manufacturing footwear under private label for Canadian companies, since the market introduction of a Ukrainian brand would require large marketing costs, which is not feasible for all enterprises.

Apparel Textile Sourcing Canada

Apparel Textile Sourcing Canada was held on 20-22 August and brought together more than 500 apparel manufacturers from more than 20 countries around the world. This is the largest exhibition in Canada designed to match representatives of the fashion industry, clothing and textile manufacturers, as well as retailers.

Ukrainian garment makers found themselves in a company with businesses from China, Canada, the USA, Switzerland, India, Bangladesh, Vietnam, Pakistan, Sri Lanka, Nepal, South Korea, Indonesia, Colombia, Guatemala, Mexico and Peru.

The domestic light industry in Canada was introduced by both well-known trademarks and small startup enterprises:

  • Andre TAN (women’s designer clothes);
  • Berserk Sport (sportswear);
  • Bukvica (men’s and women’s clothing, accessories);
  • AnnaFoxy (women’s casual clothing, lingerie, accessories);
  • RITO (men’s and women’s knitted garments);
  • Soho Chic (women’s clothes);
  • Rubizhne Stocking Manufacture (socks);
  • Lagrand (Lesya Factory, women’s and men’s trousers).

For the first time, five Ukrainian brands (Andre TAN, Soho chic, Berserk Sport, Bukviсa and Rito) participated in the fashion show that took place within the framework of the exhibition. This indicates the high level of models developed and sewn in Ukraine.

Participation of domestic companies in the exhibitions of this level proves that Ukrainian products are an optimal combination of the best fabrics, audacious designer designs, solutions, affordable prices and the highest quality standards.

What should other Ukrainian clothing manufacturers that are interested in entering the Canadian market focus on? In fact, two opposite trends are visible. On the one hand, there is a growing demand for so-called “one-time” clothes – affordable clothing that you do not need to try on. Popularity of the sports style is growing: due to the dress code change, sportswear is becoming increasingly popular at work.

On the other hand, there are still many consumers who consider quality of fabrics as a priority. Organic cotton remains popular, but the focus shifts to recycled fabric.

As a summary, we would like to point out that, despite the fact that Canada is a highly competitive market, it can and must be approached. The main thing for the companies is to be ready for export and not to be afraid to change and adjust to the requirements and tastes of demanding Canadian consumers.

Natalia Pavlyuk, Senior Assistant, CUTIS Project in Ukraine

Source: magazine “All about the textile industry”

Standards in Canada: How to Overcome Barriers and Take Advantage of the Free Trade Agreement

It will soon be six months since the free trade regime came into force between Ukraine and Canada. How can Ukrainian exporters leverage the regime to get the highest possible advantage?

It is not a secret that after the abolition of tariff barriers, it is the non-tariff requirements that are sometimes rather difficult to overcome. Accordingly, the compliance of Ukrainian products with the regulatory requirements of the Canadian market becomes the key issue for exporters.

It is known that requirements for goods are usually issued in the form of standards and technical regulations. The former is voluntary, while the latter is mandatory to comply with. However, in Canada, one will not find such a clear division.

The standards in Canada can be conventionally divided into:

  1. Standards developed by standardization bodies;
  2. National standards;
  3. “Obligatory” standards. Right, don’t be surprised, I mean the obligatory standards.

Now, let’s take a detailed look. In Canada, nine organizations have an accreditation of the Standards Council of Canada to develop standards.

It is important that the Standards Council of Canada does not develop any standards. It accredits standardization organizations and compliance assessment bodies. However, the Council has the right to approve the standards as national standards of Canada (which, however, remain voluntary). There are currently around 3 thousand of such national standards.

Although the standardization organizations in Canada compete with each other, they have a certain specialization. 

For example, Canadian General Standards Board (CGSB) is traditionally specialized in developing standards for public procurement, organic products, office equipment, fireproofing of textile products, etc. It was CGSB that developed the standard for Canada’s national flag.

This organization, by the way, has existed since 1934, and works based on the principles of self-sustainability without receiving any state funding.

Importantly, it is currently the only one of the nine Canadian standardization organizations whose standards can be obtained for free.

Canadian Standardization Association (CSA Group) is another influential Canadian standardization organization specializing in products like electrical appliances, construction materials, vehicles, etc. For example, CSA is the author of the Canadian Electrical Code – a collective name for the standards that set requirements for underground and terrestrial electricity distribution networks, street lighting, household appliances, etc.”

Standards become obligatory when they are referenced in Regulations of Canada.

The Regulations of Canada are somewhat similar in nature to by-laws in Ukraine – they detail and supplement the provisions of Laws (in Canada – Acts). For example, in addition to the Consumer Product Safety Act, about 35 Regulations were adopted.

Public authorities in Canada increasingly use standards when drafting Regulations – the standards (or their parts) are incorporated into Regulations and thus become mandatory.

According to recent estimates, there are references to approximately 1,000 standards in the Regulations at the federal level. Hundreds of standards are referenced in provincial-level Regulations.

As for the compliance assessment bodies, there are more than 400 of them in Canada. They are also accredited by the Standards Council of Canada.

What does this mean for a Ukrainian exporter in practice?

The key question is “How to find out what requirements are put forward to your product?” The best way is to get in touch with a regulatory authority in Canada. Believe it or not, but this recommendation came from the Canadian regulatory authorities themselves. Our experience shows that requests are taken seriously and responses are sent by the authority within one to two weeks (depending on complexity of the request).

For example, medical equipment, toys, pesticides, pharmaceuticals, radiation equipment are managed by Health Canada. Innovation, Science and Economic Development Canada is engaged in management of telecommunication equipment, and Transport Canada deals with vehicles and tires.

In addition, attention should also be paid to provincial-level requirements that may differ from those of the federal level.

For example, the requirements for electrical appliances are contained in the Canadian Electrical Code developed by the CSA and adopted at the federal and provincial levels (in ten provinces and three territories of Canada). However, there are additional requirements in Ontario (so-called “deviations”) outlined in the Ontario Electrical Safety Code.

Taking into account the existence of the Free Trade Agreement between Ukraine and Canada, many producers consider Canada as a hub for exports to North America or as a starting point for exports to the United States. In terms of technical regulation, this approach may be fully justified as many US and Canadian standards are harmonized or developed jointly.

Thus, CSA has the accreditation of the American National Standards Institute, and the Air-Conditioning, Heating and Refrigeration Institute (AHRI) is accredited by the Standards Council of Canada.

Finally, it is worth remembering the famous phrase: where there is a will there is a way.

There are many more ways to export to Canada than reasons to be afraid of the Canadian standards. So, feel free to contact Canadian regulatory authorities, bring your products to the level of Canadian standards and expand your business horizons.

Author: Oleksandra Brovko, CUTIS Senior Trade and Investment policy expert

Source: European Pravda

U CAN Export: F.A.Q.

Want to export to Canada, but do not know where to start? We have prepared the answers to the most frequent questions exporters ask us.

I would like to join the export support program U CAN Export? What should I do?

The CUTIS project has now completed the selection of the first wave of the U CAN EXPORT Export Support Program participants in four priority sectors: clothing, footwear, furniture, and confectionery. The final stage of selection of participants from the IT services sector will take place in the spring of 2018.

The selected participants, with the support of Canadian industry consultants, are preparing to participate in exhibitions in Canada throughout 2018. Applicants who were not selected were included in the reserve of the participants of the U CAN EXPORT program. They will have a chance to take part in an integrated level of the program in the future, as well as take advantage of all the opportunities of its educational/consultational level. The rotation of the companies will take place after the project’s cooperation with the current program participants will be completed.

If your company is not among selected ones but wishes to enter the U CAN Export Support Program, please fill out a short application form here. The selection of companies from the reserve will be conducted on a competitive basis, by filling out special questionnaires, interviewing company representatives and visiting applicants’ production (if needed).

After completing the application, your company will also be included in the CUTIS project exporter database and will receive information and training materials, invitations to trainings and other project activities.

My company is not in the priority sectors. What should I do?

For companies in all other sectors, we have developed a step-by-step export guide to Canada I CAN EXPORT. It covers most of the issues faced by exporters, such as:

  • consumer preferences of Canadians
  • search for partners in Canada
  • the procedure of crossing the border and the requirements for the documentation
  • regulatory constraints on the Canadian market
  • logistics, etc.

Also, our project is currently developing an export portal with useful information for Ukrainian exporters.

We encourage you to subscribe to our Facebook page, where we constantly publish interesting information on trade with Canada and announce all our events. You can also subscribe to our e-mail newsletter.

I want to get a comprehensive help to enter the Canadian market. Who should I contact?

Unfortunately, our project does not have the resources to systematically help all the companies that contact us. However, there are other organizations that have a lot of experience in helping Ukrainian companies to enter the Canadian market.

For example, you can contact the Canadian-Ukrainian Chamber of Commerce (CUCC), which is a partner in implementing our project. CUCC has been supporting trade and investment development between Canada and Ukraine for more than 25 years and has offices in Toronto, Alberta and Ukraine. The Chamber organizes business forums, trade missions and conferences in Canada, promotes business contacts between the two countries, has partnerships with Governments of Canada and Ukraine, and provides a wide range of assistance services for Ukrainian exports to Canada.

Follow CUCC on Facebook

Eco => Economy. Economic implications of environmental protection measures

For a long time of human industrial progression environmental quality issue could be described as “tragedy of the commons”. This is the problem occurring when individuals tend to overconsume a particular resource to the extent that demand overwhelms supply and the resource becomes unavailable to some or all.

Until an issue of environmental conditions was not pivotal for life quality, public movements and relevant engineering decisions remained in the range of “crying ecology” and were not taken seriously at a large scale.

Gradually, public demand for environmental quality as a conditioned product is transforming into state and international policies, framing new reality for all.

Therefore, for business and citizens environmental protection is not the matter of compassion for birds and butterflies anymore. This is about money and economic development. And the more Ukraine is going to integrate into the global community, the clearer these incentives must be.

“Environmental problems, whether uncontrolled pollution or the unsustainable use of natural resources, result when resources are left outside of the market institutions of property rights, voluntary exchange, and the rule of law”.

The Washington Post, 2017

Benefits for business

By these days all pushes and pulls around “environmental protection” and “sustainable development” appealed to conscience, responsibility and only caused troubles and needles spendings. But since recently there are lots of talks about the profitability of this sphere. Which actual financial advantages my business can get from environmental protection measures?

Prevented financial losses

Less energy and resource consumption prevent money loss. This makes your business resilient to shifts in commodity prices and energy tariffs.
Maintaining legally allowable indicators of environmental pressure at your production facilities saves you from relevant state penalties.

Think ahead: resources tend to be more expensive.

“Shifting the burden of taxes away from employment and towards resource use and pollution will help to increase the efficiency of resource consumption and deal with unemployment”.

European Environment Agency, 2017

Economic gains

Due to the spread of “ethical consumption” on the markets of developed countries, selling goods produced with the application of environmentally sound practices gives the possibility to earn more on their price premiums.

“The volume of global organic market in 2015 reached 81.6 billion US dollars with the greatest sales in North America and Europe”.

Organic Monitor, 2017

Minimized financial risks

“Everything is connected to everything else” – Commoner’s environmental law says. Good conditions of environmental components and sound manufacturing practices are also crucial for the high quality of commercial products. This is sufficient for:

  • avoiding fines, confiscations, and withdrawals of the commercial product from the market;
  • preventing penalties from product supply disruptions.

With good environmental reputation, you will benefit from lasting and trustworthy relations with your partners, customers, local population and controlling bodies.

“Millions of eggs removed from European shelves over toxicity fears”.

The Guardian, 03.08.2017

Boost for investment attractiveness

Environmental protection practices will allow your company to enter stock market and attract foreign investors. This is because a growing number of stock exchanges make public commitments to advancing sustainability in their market.

 

“Market expectations are shifting quickly and we see more and more stock exchanges viewing sustainability reporting as necessary and inevitable”.

UNCTAD, 2016

Resilience to future policy developments

As part of international climate obligations, an in-country emission trade system (ETS) by greenhouse gases has to be introduced in Ukraine.

While implementing environmentally sound technical and managerial approaches, your enterprise will be prepared for the upcoming regulatory shifts and earn money on selling leftovers of emission quotas.

New business opportunities

Environmental protection is also about consumer preferences. Therefore, environmental criteria are progressively included in technical specification of public and corporate procurements.

By using advanced environmental practices and relevant environmental labeling, you will be able to stick with the requirements of “green procurement” and therefore enhance your possibilities on the market.

“IKEA sets a goal of 100% of its wood, paper and cardboard from more sustainable sources (FSC certified or recycled) by 2020.”

IKEA 2015 Sustainability Report

This makes sustainable production practices for its suppliers not voluntary, but mandatory.

Advantage for business development

International financial institutions – IFC, EBRD, EIB – require their borrowers to be compliant with environmental legislation and their internal environmental standards.

While following this requirement, you have greater access to funding, which is one of the major problems for Ukrainian business.

“The sustainability of our investments is a prerequisite as much as their bankability. This is why the 10 environmental and social standards apply to all EIB’s investment projects”

European Investment Bank

Benefits for the government

A state is a social contract, according to which people refuse part of their freedoms in exchange for protecting their rights. Article 50 of the Ukrainian Constitution says:

“Everyone has the right to an environment that is safe for life and health, and to compensation for damages inflicted through the violation of this right”.

State of an environment isn’t something given for granted, but also “a product” requiring appropriate maintenance. Therefore, it is a prerogative of state servants to adopt relevant strategies and policies to enable the implementation of citizens’ constitutional rights.

Instead of being a break for economic activities, proper environmental policies in place can become the basis for “green growth”: economic development, which ensures that natural assets continue to provide the resources and environmental services, on which the well-being relies. How can this be beneficial?

Moving towards a balanced budget

Reaching strategic goals in economic and social development

“Export strategy of Ukraine. Strategic trade development roadmap 2017-2021”, indicates tourism as one of the most prospective sectors having the potential to invigorate SME development and stimulate entrepreneurship. Without proper environmental quality, this claim will not go further.

Transition to a sustainable economy

Previous decades of inappropriate resource exploitation lead to their exhaustion globally. It is expected that subsequently their price will grow. Enhanced resource and energy efficiency rises resilience to potential future supply shortages and price volatility.Associated incentives for innovation and entrepreneurship will be favorable for transition to more efficient – innovation-driven – economy.

Strengthened national security

More efficient resource use, local renewable energy production prevents country’s dependence on import supplies and possible associated socio-political pressure and manipulation.

Strengthened economic cohesion

Emerging business opportunities in “green economy” will support the economic development of lagging Ukrainian regions and better social inclusion. This perfectly aligns with decentralization reform in Ukraine.

Improved trade balance → better macroeconomic indicators

  • import reduction through an enhanced material use and waste recycling, energy saving and local renewable energy production;
  • boosting exports (especially of eco-industries: the technique for renewable energy production, means for air and water treatment, waste recycling lines, organic agricultural products, etc.).

 Improved reputation and perception of public services

Environmental problems have no borders and are not an issue for a single separate country. Proper environmental policy in place will prevent possible international environmental disputes and give better prospects in international cooperation. This is especially relevant in the light of European integration of Ukraine.

Benefits for the population

Aren’t you worried about the fact, that businesses make profit at your expense? They take natural resources, belonging to you according to the Constitution, pollute air, water and generate waste. So that you have to pay with your comfort, health, and life longevity. In this regard, environmental protection measures can limit some of those losses.

Increased length and quality of life, avoided illnesses

Ukraine performs the worst in terms of human deaths because of air pollution: 120 out of 100,000 deaths were because of unsatisfactory quality of ambient air.

WHO global rating, 2016

Enhanced employment opportunities in the “green” sector

Adopted and upcoming environmental policies transform employment patterns: some professions disappear, while others just emerge.

“The transformation to a greener economy could generate 15 to 60 million additional jobs globally over the next two decades and lift tens of millions of workers out of poverty if the right policy mix is put in place”.

International Labor Organization (ILO), 2012

Greater protection from disasters

Since natural disasters cause life, health, and financial losses, proper environmental management will decrease those risks.

Poor people in developing countries are more dependent on agricultural and ecosystem-related income, more vulnerable to natural hazards and spikes in food prices, which climate change is likely to magnify.

World bank, 2016

Free access to high-quality local recreational resources

While facing unsatisfactory conditions of local recreational places, you have to spend additional costs to travel to those distant ones.

With the proper environmental policies and measures in place, you will exploit your constitutional right for natural resources and avoid those additional “travel costs”.

Author: Zoia Pavlenko, Ukrainian Environment Expert at CUTIS project

The nearby market of distant Canada: free trade and its opportunities for Ukrainian exporters

The first day of the last summer month was marked by the long-awaited launch of a free trade agreement between Ukraine and Canada. Finally, upon completion of ratification procedures, the Canada-Ukraine Free Trade Agreement (CUFTA) came into effect.

Let us take a look at the Agreement from a practical standpoint and analyse the following:

  • how to work under the Agreement and properly understand the meaning of staging categories in the tariff schedules of Ukraine and Canada;
  • how to confirm the origin of goods; and
  • what are regulatory requirements to your goods.

Canadian market is diverse and rather heterogeneous. Therefore, interesting facts are provided at the end of this article for you to get oriented when looking for a niche for your goods at Canada’s store shelves.

Staging categories in tariff schedules of Canada and Ukraine

As a rule, Ukrainian manufacturers are interested in two things:

  • whether zero-rate import duty will be applied for exports to Canada;
  • how will import duty change for imports into Ukraine.

If you decided to review the Agreement yourself in order to find answers to those questions, please, note the staging categories in the tariff schedules of Ukraine and Canada.

The Tariff Schedule of Canada contains the goods with the import duty rate other than “0” as of the effective date of the Agreement (only 2% of goods). That is, if your goods are not listed in the Tariff Schedule of Canada this means that a zero import duty is applied to them since 01.08.2017. Therefore, there are only two staging categories in the Tariff Schedule of Canada: “7” and “Е”.

Staging category “7” applies to certain vehicles and means that the import duty will become zero in the eighth year of the Agreement (according to the estimates, in 2024) by getting gradually reduced in eight equal stages starting on 01.08.2017. Let us take, for instance, “Non-amphibious all-terrain vehicles of a weight of less than 227.3 kg, having fewer than six wheels and designed to carry only one passenger” (8703.21.10), for which the base rate of import duty is 6.1% and the staging category is “7”. The order of gradual reduction of import duties is shown in the graph below.

It should be noted also that the first year of the Agreement is 01.08.2017 through 31.12.2017. That is, the second year and the next phase of import duty liberalization will start already on 01.01.2018 (and last through 31.12.2018).

The goods in staging category “Е” in the tariff schedules of both states are excluded from the scope of the Agreement. This means that the free trade regime does not apply to those goods and the import duty will continue to be applied at the MFN rate (relevant rates of import duties may be found in Canada’s Customs Tariff).

In the case of Canada, Category “Е” includes the goods subject to Canada’s global tariff quotas. These are mainly certain grain crops and meat and dairy products. The idea of the tariff quota is that a zero or a very low import duty rate is applied within a tariff quota. When the quota is exhausted, however, a higher duty rate is applied (MFN rate in accordance with the Agreement).

It should be noted that Canada’s tariff quotas are international and applied to all countries of the world rather than Ukraine only. Canada reserved the right to set tariff quotas when it became a member-state of the World Trade Organization (WTO). Those quotas are available for all exporters from all countries that are WTO members. Depending on the goods, the tariff quotas are administered on the basis of either of the following principles:

  • “first-in-first-served” (the control of compliance with this principle is exercised by Canada Border Services Agency, CBSA);
  • through a preliminary distribution of tariff quotas by Global Affairs Canada based on applications.

In both cases, the tariff quota is received by an importer in Canada. The list of tariff quota holders may be found on the website of Global Affairs Canada. Following this link, for example, you may see the lists of companies that received a tariff quota for cheese in 2017.

The Tariff Schedule of Ukraine contains a much larger number of staging categories. In particular, this is due to the fact that Ukraine succeeded in claiming the asymmetric nature of the Agreement. Therefore, Ukraine will liberalize import duties for about 80% of the goods of Canadian origin on 1 August already (while Canada will ensure free access to the market for 98% of Ukrainian goods).

That is why, zero-rate import duty will apply to the goods under staging category “0” in Ukraine’s Tariff Schedule as soon as the Agreement comes into force. The plan for the goods under staging categories “1”, “3”, “5” and “7” is shown in the table below.

For the goods under Staging Categories “5А”, “5B”, “5С”, “7А” and “7В”, the import duty rate will be liberalized only in part. As an example, let us take: 1517 90 91 00 – Fixed vegetable oils, fluid, mixed; Base Rate – 15%, Staging category: 5В. The import duty rate will be liberalized as follows (as we can see, the rate will only drop by 4.5% in 6 years):

Staging category “Е” (exclusion from the scope of the Agreement) in the Tariff Schedule of Ukraine applies to sugar.

Rules of origin

Similarly to any other free trade treaty, CUFTA contains provisions on definition of origin of goods. For instance, the rules of origin determine, which Ukrainian goods are granted preferential access to the Canadian market within the CUFTA framework, and which are not (and vice versa).

In compliance with the Agreement, goods are recognized as originating from Ukraine if they are:

  1. fully manufactured in Ukraine;
  2. manufactured exclusively from the materials originating from Ukraine;
  3. processed in Ukraine to a sufficient extent.

Definitely, the most complex are the rules of sufficient production that

  • require changing the tariff classification, or
  • impose requirements to the relation of the cost of foreign materials to the transaction cost, or
  • impose a requirement to the relation of the cost of foreign materials to the goods price on the Ex Works terms.

Therefore, exporters should review in detail the rules of origin contained in Chapter 3 and Annex 3-А to the Agreement.

The document confirming the origin of goods is the Declaration of Origin (a template is contained in Annex 3-В to the Agreement). That is, exporters themselves provide information on the origin in the invoice or any other document containing the goods description.

Thus, for the confirmation of the goods origin, Ukrainian exporters do not need any certificates/marks of customs authorities, which reduces the cost and time for customs clearance of goods.

Where to find regulatory requirements to your goods?

Canada is a developed country that sets rather strict requirements to the safety and quality of goods. For those requirements not to become non-tariff barriers for export, it is worth studying them in detail. There is a number of useful resources for that purpose.

For instance, Canada Food Inspection Agency ensures compliance with all regulatory acts dealing with foodstuffs, animals, and plants imported to Canada. There is a very convenient resource on the Agency’s website that allows generating the requirements for import to Canada using the code (or even the name) of goods. The system is called Automated Import Reference System (AIRS) and is somewhat similar to the European Export Helpdesk resource.

For manufacturers of consumer goods, medicines, foodstuffs, medical equipment, health products, the website of Health Canada will be of use.

Manufacturers of washing machines, dish washers, freezers, electric ovens, and refrigerators should review the details of EnerGuide certification requirements on the website of Natural Resources Canada.

If you are a manufacturer of textile, it is worth visiting the website of Canadian Competition Bureau to learn, for instance, about the textile marking requirements.

In fact, there are specific marking rules applied in Canada.

Labels on the packing must be in Canada’s two official languages: French and English, and both texts must occupy the same area.

Therefore, we recommend reviewing the provisions of Consumer Packaging and Labelling Act.

One should be very careful with statements concerning the goods. For instance, under Canadian rules the skin antiaging agent may only prevent signs of aging rather than reducing wrinkles. The same refers to foodstuffs where statements concerning the goods may be of three types only:

  • general impact on health,
  • functional impact on health,
  • reduction of disease exposure.

For each type of statements, individual rules are applied. For instance, if you position your goods as “natural” you have to make sure they do not contain any additional vitamins, minerals, nutrients, artificial flavours or food supplements, and no elements were excluded (except water) or significantly modified, while the physical, chemical or biological condition of the goods remains unchanged.

Usually, your Canadian partner would tell you about all regulatory requirements to the goods and how to prove compliance with them because it will be the Canadian importer who will be liable in case of incompliance. Therefore, when developing a bilingual label remember that the final word of the design approval rests with your partner.

Concerning the search for partners, Canadian Importer Database is an extremely useful resource that contains lists of companies that import their goods to Canada with a breakdown by products, cities and countries of origin.

Canada: Facts and Opportunities

Finally, some words about Canada and Canadians. Canada is the second largest country in the world. However, about four fifth of its population live in the area 150 km away from the US border.

More than 6 million Canadian citizens are those who immigrated from other countries; they represent about 20.6% of the country’ entire population (35.9 million people in total).

In Canada, there are 1.3 million Ukrainians; Ukrainian community is one of the largest in Canada. Originally, Ukrainians immigrated to the prairie provinces (Manitoba and Saskatchewan) but lately have been also discovering Ontario and Quebec.

Canada’s multiculturalism opens broad opportunities for business on condition of detailed market analyses aimed to detect target consumers. For example, cosmetic manufacturers export skin bleachers to British Columbia because of many people of South Asian descent living there.

Due to the increase of the Muslim community, demand for Halal products is steadily growing. Interestingly, more than 95% of Canada’s Muslim population live in cities.

According to the latest research of Business Development Bank of Canada Canadian consumers prefer:

  • Internet search before purchasing the goods (they carefully study other buyers’ reviews and feedback);
  • health lifestyle (as estimated, almost 31% of Canadian consumers are ready to pay more for healthy goods);
  • individual approach; and
  • good quality at lower price.

Also, about 6 of 10 Canadians consider themselves to be “ethical consumers” and are willing to spend their money for the goods produced under certain ethical standards. For instance, Canadians are ready to pay more for the goods that are not connected with the use of children’s labour.

Canadian market of organic goods is the fifth largest in the world and 56% of Canadians buy organic products every week.

Thus, Canadian market is closer than it may seem in the beginning, and the Free Trade Agreement does bring many opportunities for Ukrainian exporters considering significant and immediate cancellation of import duties and a large Ukrainian diaspora in Canada that may become a bridge to Canadian consumers, distributors, agents, retail operators, etc.

So don’t be afraid to capture new markets even though they are located far.

Author: Oleksandra Brovko, CUTIS Senior Trade and Investment policy expert

Source: European Pravda

Ecology for exporters to Canada

Understanding the global consumer and production trends is a prerequisite of success in the international markets. One of those trends is, undoubtedly, the increased attention to environmental protection.

Governments of developed countries increasingly focus on sustainable economy development motivating manufacturers to take measures for the protection of the environment. Throughout the world, specifically in the developed countries (Europe, US, Canada), consumers are getting more inclined to “ethical consumption”: selection of goods and services that bear lesser risks for the environment even if they turn out to be more expensive.

Relevance of these issues also stimulates those willing to speculate and groundlessly associate themselves with environmental protection and «pseudo-ecological» goods. This phenomenon (greenwashing) is present not only in Ukrainian markets but also abroad.

Such speculations may confuse not only consumers but also exporters who try to keep abreast of the environmental trend. Therefore, when entering Canada’s market, for instance, one should be aware of the terminology and understand the practices of environmental protection in order not to get under sanctions and obtain maximum advantages from the funds invested into a «green brand».

So, let us avoid stereotypes and try to take an unbiased look at the issues of ecology and environmental protection that are important for exporters.

1. Good/bad ecology.

What people typically think. Bad ecology is when it has much waste and contaminants that cause harm to human health.

What is reality. First of all, there is a principal difference between the concepts of «ecology» and «environmental protection».

Ecology is a science that explores interaction of living organisms, their adaptation to the life with one another and dependence upon the conditions of existence. Simply speaking, this is a science of who eats whom in the nature and how they adapt to the environment and influence the environment.

Human being is a living organism and a part of the nature as well. In the middle of the 20th Century, it became obvious that due to considerable consumption of natural resources, contamination of water and air humans became a specie that determines living conditions for all other organisms. The misbalances created by humans also impact their own lives.

Understanding of these dependences resulted in the establishment of «environmental protection» – a system of measures aimed to mitigate the consequences of human activities for the environmental conditions and relations between other living organisms in the environment. Those measures may be aimed to change the population’s behavioral habits, develop and implement engineering solutions, policies and restrictions, etc.

It is important to understand, therefore, that “ecology” is a science. Thus, the phrase “bad ecology” is equivalent to expressions like “bad physics / philosophy / jurisprudence». Instead, it would be correct to speak in this context of «inappropriate environmental condition».

2. «Ecologically clean» goods.

What people typically think. Ecologically clean goods do not contain toxins that negatively impact human health.

What is the reality. When consuming certain goods or services people mainly focus on their influence on their own organisms. Usually consumers are not familiar with the processes of manufacturing and consumption waste management. Therefore, they mistakenly transfer environmental impacts on the consumer qualities of the goods themselves, that is, their usefulness for the human organism. This is where the confusion starts between ecology and quality of goods, which is used by dishonest manufacturers to speculate.

In reality, however, “ecological” features of the goods are determined by environmental impacts in the course of their manufacturing (emissions of contaminants into the air and water, production wastes, etc.), operation (for instance, emissions of contaminants by automobiles, energy efficiency of electric equipment) and at the end of the life cycle (possibility of recycling, biodegradability).

For instance, detergents may be considered environmentally friendly unless they contain phosphate compounds. The logic is simple: as phosphates get into water reservoirs through sewerage systems they cause rapid regeneration of algae known as «water blooming». Such algae consume a significant share of the oxygen in the water causing its deficit for fish. As a result, fish die, which is obviously negative for the environment.

Another example is furniture made of solid wood, which is positioned as “ecological”. Indeed, it may be ecological if made from legally procured but not poached wood.

Therefore, an «ecological» commodity does not mean its purity/contamination or consumer qualities. This is an issue of environmental impacts in the course of manufacturing and consumption. Moreover, both in Ukraine and Canada, for instance, legislation prohibits using such markings as «ecologically clean products» or «100% natural product» without a third-party confirmation and application of a standardized ecological mark.

3. Ecological packing.

What people typically think. Ecological packing neither contains toxic substances nor influences the quality of goods.

What is the reality. Lack of understanding of the «ecological packing» is directly connected with the previous stereotype regarding «ecologically clean goods». Instead, emphasis should be made on the packing’s influence on the environment rather than the product quality.

Currently, packing wastes constitute up to 30% of total solid wastes in Ukraine. Under existing model of business: «extraction – production – use – removal», these 30% end up in landfills along with a lot of valuable resources that, in fact, were never utilized.

Since a larger share of wastes in Ukraine finally gets to the landfill or roadside/field/forest, it is important to make sure they do not remain there for thousands of years. One of the ways of possible optimization, therefore, is biodegradability of packing. This means, for example, that a paper cup thrown away at the roadside may become food for the soil microorganisms and disappear from the roadside in a couple of months. Even in this case, however, the problem of irrecoverable loss of resources is not resolved. Therefore, biodegradable packing may be considered as the “best of the worst” solution.

From the environment viewpoint, the best approach to the waste treatment is when packing is reused or becomes a material for manufacturing of other goods. In this case, less garbage comes to the landfills and fewer production processes are initiated for extraction and processing of raw materials. This approach of «circular economy» has already become a strategic development area in the developed countries. In this context, production of simple packing that may be easily involved in the waste recycling system that exists, for instance, in Canada may contribute to success in the Canadian market.

4. Organic products.

What people typically think. Organic products definitely do not contain any toxins and, therefore, are ecological.

What is the reality. The statement of «organic» may apply to the goods made from agricultural raw materials: nutrition products, feeds, clothes, cosmetics. A specific feature of the organic agricultural production and processing is that it excludes artificial chemical fertilizers, pesticides, genetically modified organisms, preservatives, growth stimulants and hormones from the technological processes. Therefore, the probability of their content in the end product is minimal. Once again, however, the quality of foodstuffs is an issue of standardization and food safety rather than ecology.

Instead, the value of organic practices for the environment is due to restricted use of mineral fertilizers and pesticides that pollute surface and ground waters and kill the soil microorganisms. Organic agricultural practices are focused on stimulation of functioning of the soil as a natural ecosystem that contributed to accumulation of carbon compounds in it. In this process, carbon is withdrawn from the atmosphere, which contributed to combating of climate changes.

5. Reduction of energy/water consumption.

What people typically think. This helps saving money. Does this have any impact on the environment?

What is the reality. It is worth reviewing the data on electricity generation in Ukraine. In total, 90% is generated at nuclear (NPP) and thermal (TPP) power stations. Alternative power generation takes less than 1%. It should be remembered that NPPs use nuclear fuel for power generation and TPPs mainly burn gas and coal. Consequently, this brings nuclear risks and causes emission of contaminating substances and greenhouse gases into the atmosphere.

 

Thus, reduced consumption / generation of electricity in Ukraine will result in the decrease of required volumes of nuclear fuel and its wastes; fewer geological and landscape shifts during extraction of coal and uranium ore; lower atmospheric pollution. Water consumption is closely connected with energy. Due to the needs of pumping, preliminary treatment and final purification, energy resources amount to 30% of the production cost of water. At the same time, water is a working element in today’s system of energy generation (for instance, steam that moves generator turbines at TPPs and NPPs and working fluid at HPPs). Therefore, reduced use of water will, in fact, decrease the need of energy resources while the latter will make a contribution into combating climate changes.

The better exporters orientate in the ecological aspects of production and consumption, the higher «market power» they have. Consumers will be willing to support reduction of negative impacts on the environment with their money. That is why it is important to understand the key concepts of ecology and environmental protection. This will prevent from «backsliding» to greenwashing and allow commencing the development of a long-term «green» strategy of production and promotion of goods in the international markets.

Source: Liga.net

Author: Zoia Pavlenko, Ukrainian Environment Expert, Canada-Ukraine Trade and Investment Support project

Four stereotypes about trade with Canada: What blocks Ukrainian export

March 14, 2017, will undoubtedly go down in the history of Canadian-Ukrainian friendly relations, because on that day the Ukrainian parliament has ratified Canada-Ukraine Free Trade Agreement (CUFTA).

Now we are waiting for ratification from the Canadian side, the exchange of the instrument of ratification – and the free trade zone will work in full.

Therefore, in 2017 we will celebrate not only Canada’s 150th anniversary but also the beginning of our free trade with the country.

The team of the Ministry of Economic Development and Trade managed to fix in the Agreement positions that are more favorable for domestic exporters and a broader time frame for abolishing import duties. The agreement will immediately open for Ukrainian exporters duty-free access to 98% of the Canadian market. This applies to both industrial goods and agricultural (except 108 tariff lines, which can be exported without duties within Canada’s global quotas).

Deputy Minister of Economy, Ukraine’s trade representative, Natalia Mykolska noted Ukrainian exporters would get short-term and long-term prospects for entering the Canadian market, and national producers would have incentives to improve the quality and competitiveness of their products.

The time does not wait, and Ukrainian exporters should start exploring the Canadian market and the tastes and preferences of Canadian consumers regarding their goods. So when the agreement enters into force, they can begin exporting the first lots of goods without paying import duty. The Office for Export Promotion under the Ministry of Economic Development might help conquerors of overseas markets to find business partners and necessary information.

Related: Senate of Canada ratifies free trade agreement with Ukraine
Unfortunately, the long-term orientation to the markets of the nearest neighbors generates a lot of fears among Ukrainian exporters about the free trade agreement with Canada.

Many Ukrainian businessmen are convinced that Canada is far away, so transporting would be expensive, and Ukrainian products does not hold water before competitive American goods – accordingly, there is no place for Ukrainian goods in the Canadian market. That is, the tariff and non-tariff barriers are paralleled with the mental ones.

In this article, we will try to analyze how these and other stereotypes are justified.

Stereotype 1: “Canada is far away. Transport costs would make the goods uncompetitive”

CUFTA is the first transatlantic free trade agreement concluded by Ukraine. Although the Canadian market may seem distant, and the delivery of goods to Canada can look expensive and long, technological progress allows you to ignore the long distances in international trade of the 21st century.

Look at the shelves in supermarkets in Ukraine. You will see pears from China, wine from Chile, and these goods are sold at relatively reasonable prices.

Imagine that according to the Sea Distances portal the cargo from Shanghai to Odesa (8379 nautical miles of distance) would be delivered in 35 days, moving at a speed of ten knots per hour. In the case of Chile, time and distance are almost the same. Overcoming so many kilometers is not cheap. In addition, Ukraine still has no free trade with China and Chile. This means that the goods are imported with payment of import duties on the Ukrainian border.

Undoubtedly, transportation costs determine the potential for entering foreign markets, and the cost of delivery affects the variable costs of doing business. Moreover, a long distance can become a challenge if the product spoils rapidly (for example, fresh fruits, and vegetables) or depends on consumer preferences (for example, high fashion collections).

However, at present, logistics and shipping companies offer individual personalized solutions for the delivery of cargo anywhere by air, sea, rail, road transport.

If you plan to export fresh fruits and vegetables to Canada, choose air or sea shipping with temperature control. If your collection is to be shown at the fashion week in Montreal, use fast air travel or even express delivery. If you cannot fill the entire container with your goods, join the group of cargo, which consists of many individual deliveries.

Long sea transport also has the advantage: according to some estimates, an additional kilometer of land transportation will be seven times more expensive than an additional kilometer by sea.

In fact, there is no single solution for all exporters of the issue of the long distance between Canada and Ukraine. Yes, indeed, if the marginality of goods in the Canadian market is low, transportation costs can affect competitiveness.

However, distance is not a problem, because the development of transport technologies offers a variety of options for reducing costs and optimizing the duration of transportation to Canada.

Stereotype 2: “Canada imports everything from the US, Canada has no place for Ukrainian goods”

Common borders and geographical proximity have made Canada and the US the most important trading partners for each other. Canadian consumers are important for US producers, as last year Canada purchased goods and services for $ 337.8 billion from its southern neighbor.

The economies of the two countries are highly integrated, and this process was accelerated by the bilateral free trade agreement of 1988 and the NAFTA in 1994. In addition, a large percentage of Canada’s bilateral trade with the United States consists of intermediate products that enter the integrated supply chain between the two countries.

As a rule, neighboring countries trade more than geographically remote ones. Bilateral trade between close countries is facilitated by a developed regional logistics network, the similarity of the business environment and bilateral customs cooperation.

Think about Ukraine. Now the largest trading partner of Ukraine is the EU. In 2015, almost 40% of Ukrainian goods and services were exported to the EU. The bilateral trade is growing due to a deep and comprehensive free trade agreement between Ukraine and the EU.

However, free trade with the EU does not prevent the presence of pears from China, wine from Chile and Georgia, and dairy products from Belarus on the Ukrainian market.

In addition to NAFTA, Canada has 10 existing free trade agreements, in particular with Korea, Israel, Jordan, and the European Free Trade Association (EFTA).

Obviously, Canada seeks for free trade, and the diversity of intercontinental free trade agreements demonstrates that Canadian foreign trade is multi-vector.

Ukrainian exporter will face competition with the American one and other foreign manufacturers in the Canadian market. However, this competition will stimulate it to improve its products and offer new values to Canadian consumers.

Stereotype 3: “Ukraine would be able to export its goods to the US through Canada without paying import duties”

The free trade regime between Canada and the US can lead to the idea that due to duty-free access to the Canadian market can enable exporting goods through Canada to the US without paying import duties on the Canadian-American border.

Given that there is no free trade agreement between Ukraine and the United States, goods of Ukrainian origin are subject to customs rates based on the most-favored-nation treatment (except for goods falling under the US general preferences system).

In addition, free trade agreements contain rules of origin that the goods must comply in order to have preferential access to the partner market by agreement. According to CUFTA, goods produced in Ukraine have preferential access to the Canadian market.

Remember that in order to cross the Canadian-American border on preferential terms, the goods must be of Canadian or American origin respectively, since NAFTA is still a free trade agreement, not a customs union.

At the same time, Canada might be a regional hub for export sales, logistics planning, distribution, marketing and working out a strategy for entering other markets.

Stereotype 4: “Canadian consumers buy products which are made in Canada only”

Polls show that consumers in Canada are really inclined to buy Canadian products, since the purchase of “made in Canada” products positively affects the economy of the country, creates jobs, etc. A 2013 study indicates that 45% of Canadians are trying to buy goods produced in Canada.

Nevertheless, two out of three consumers indicate that the main factor in buying goods is still a low price.

Thus, to consider that Canadians only buy “made in Canada” products is a big exaggeration. Supporting your country, when the crisis is still palpable, is a completely justified behavior. The same thing is happening in Ukraine in the last two years.

First, remember that the diaspora of Ukrainians in Canada amounts to more than 1.3 million people. Diaspora can help spread information about the product, establish the first business contacts, and reduce initial costs when entering the Canadian market.

The presence of Canadians of Ukrainian origin makes Canada a very welcoming place for Ukrainian small and medium-sized businesses.

Secondly, remember that Canada is a big country, and consumer preferences can be different in Ottawa, Montreal, and French-speaking Quebec City.

Canada is a very diverse country with a multinational population. In 1971, it became the first country in the world where multiculturalism became part of official state policy. One-fifth of Canadians were born not in Canada. Thus, diversity is the strength of Canada and a good opportunity for Ukrainian exporters to find a new market for their goods.

And finally, Ukrainian companies have something to offer to Canadian consumers. We are able to create, surprise, and create a quality product. Even before the era of free trade with Canada, Ukrainian companies successfully establish business contacts, meet with potential partners, participate in exhibitions, calculate logistics, sign contracts, and deliver goods.

When you have a quality product that meets the requirements of the Canadian market and the consumer preferences of Canadians, then there no distance, and competition is not a hindrance.

Author: Oleksandra Brovko, CUTIS Senior Trade and Investment policy expert

Source: European Pravda

Olga Vergeles: CUTIS will help Ukrainian businesses to enter Canadian market

One of the key aspects of economic development of Ukrainian regions is building the export capacities of local producers and attracting direct foreign investments.

Being geographically distant from Ukraine, Canada has strong historical ties with it and similar values. To affirm such affinity Canada has been consistently promoting reforms in Ukraine. The Canada-Ukraine Trade Investment Support (CUTIS) project offers support in the sphere of export and attraction of investments.

CUTIS is a five-year (2016-2021) initiative of the Canadian government aimed to reduce poverty in Ukraine by expanding exports from Ukraine to Canada and investments from Canada into Ukraine. The projects was launched in February 2016 and has been implemented by the Conference Board of Canada in cooperation with the Canada-Ukraine Chamber of Commerce.

The project aims to support small and medium-sized enterprises across all regions of Ukraine by partnering with chambers of commerce and industry, business associations as well as the Government and reform project offices. A special focus of the project is cooperation with women-run enterprises. Also, the project is oriented at developing environmentally friendly businesses in Ukraine.

The key partners of CUTIS are the Ministry of Economic Development and Trade of Ukraine represented by Ukraine’s Trade Representative Nataliya Mykolska and her team, the Export Promotion Office headed by Maryana Kahanyak, and the newly created Investment Promotion Office headed by Daniel Bilak.

The project concentrates its activities on the following key areas.

First, awareness raising and business networking. The starting point for practical implementation of the project was the Canada-Ukraine Business Forum hosted in Toronto in June 2016, which was attended by more than 400 representatives of both Ukrainian and Canadian business. The forum was focused on four key sectors – agriculture, energy efficiency, innovations, and IT. The event was attended by the Prime Minister of Canada Justin Trudeau, the Minister of International Trade (now the Minister of Foreign Affairs) Chrystia Freeland , and a high-level Ukrainian government delegation.

Business Forum has demonstrated investment advantages of Ukraine for representatives of Canadian business and encouraged establishing trade contacts between small and medium-sized enterprises of both countries. The event included over 90 B2B meetings that evolved into business negotiations and signing of contracts.

The post-forum activities are focused on the comprehensive support of small and medium-sized businesses. CUTIS experts develop all information materials required for proactive companies that are ready to export to Canada: step-by-step guides, business matchmaking recommendations, explanations on Canada-specific aspects of labelling, packaging and licensing, customs rules, product certification, etc. Also, CUTIS promptly advises entrepreneurs across the country on the available opportunities to enter Canada’s market.

During the first year, CUTIS hosted dozens of meetings with entrepreneurs interested in exporting to Canada, representatives of energy, IT, confectionary, and consumer goods industry.

The project team in Toronto (Canada) has been identifying investors that are ready to support Ukrainian business, specifically at the regional level. CUTIS will match Ukrainian enterprises with potential Canadian partners and advise Canadian businesses on investment proposals from Ukrainian businesses.

To facilitate access of businesses to such information across all regions of Ukraine export and investment web-portals are being created.

Also, CUTIS will cooperate with Ukrainian government officials and businesses to help them use maximum benefits of ratification of the landmark Canada-Ukraine Free Trade Agreement (CUFTA) that was signed in summer 2016 during the first official visit of Justin Trudeau to Kyiv. To better communicate information on benefits offered by the CUFTA regional tours and meetings will be organized, during which the project experts will educate Ukrainian businesses about new conditions of exporting to Canada and other advantages of the CUFTA.

The project will also provide comprehensive support concerning exports of five priority commodity groups to Canada. Unfortunately, CUTIS cannot provide direct support to all enterprises willing to enter Canada’s market. For this reason a research was initiated to identify Ukrainian goods that are top priority for Canada. In spring 2017 CUTIS will know five commodity groups that have better chances for success in Canada.   

Upon presentment of results of such research a transparent selection will be conducted in the most transparent manner to identify enterprises of the prioritized sectors, which are eligible to get a full-scale support. Ukrainian enterprises from all regions may participate in the selection.

The project will facilitate participation of the selected enterprises in trade fairs and events aimed at expanding business relations in Canada. They will get professional advice directly from Canadian specialists and use their assistance to adapt Ukrainian goods to regulatory requirements for exports to Canada. The project will include joint work on packaging, licensing, environmental certification, marketing, compliance with standards of Canadian laws and regulations.

Such comprehensive support is expected to materialize in successful market entry of Ukrainian goods and stimulate a significant expansion of Ukraine-Canada trade.

One more aspect of the project is to develop competences and skills of governmental and non-governmental organizations in the field of exports and attraction of investments. CUTIS will share best world practices in the sphere of international trade and attraction of investments with Ukrainian Ministries, reform project offices, chambers of commerce and industry, and business associations.

In December 2016 CUTIS and WTO conducted an international trade negotiations training simulation. A series of trainings on identification of priority sectors for export and use of dedicated software is scheduled for February 2017. Similar professional events will be hosted during the project.

In cooperation with regional partners CUTIS will offer courses aimed to develop export capacities of small and medium-sized enterprises. The materials obtained will be used to further educate local entrepreneurs.

The goal of the project is to deliver practical skills to the governmental authorities and organizations promoting business development. Canada’s competence and expertise will help the Ukrainian stakeholders to strengthen their professionalism, expand horizons of trade and contribute to Ukraine’s success globally.

Improvement of the regulatory framework in Ukraine is a prerequisite to success of Ukrainian goods in Canada. CUTIS will cooperate with the Government of Ukraine to harmonize Ukrainian and Canadian standards. Regulatory approximation will facilitate the market entry process for Ukrainian businesses in Canada.

Yet another important aspect is cooperation with Ukrainian testing laboratories in five priority sectors to help them get certified by the relevant Canadian regulatory agencies. At the moment international quality certificate is a pass for goods to Western markets.

Entering the Canadian market requires efforts, time and substantial work on the products. However, it is a challenge rather than an obstacle for Ukrainian producers. Proactive business is an efficient drive for trade. CUTIS goal is to be a compass that will show a proper direction to the entrepreneurs.

CUTIS has a number of ambitious goals and is gaining momentum – year 2017 is expected to offer an array of opportunities to Ukrainian exporters. We are open for partnering with regional business associations, chambers of commerce and industry, and entrepreneurs.

Canada is waiting for you. Don’t miss the opportunity!

Source: “Strategy of development” magazine

Author: Olga Vergeles, Canada-Ukraine Trade Investment Support project manager