Canada-U.S. Blog Trade Lawyers Cyndee Todgham Cherniak and Susan K. Ross

Ukraine Has Ratified The Canada-Ukraine FTA, Canada’s Turn Is Next

Posted in Canada-Ukraine FTA

Signing Ukraine FTAOn March 14, 2017, the Ukrainian Parliament voted to ratify the Canada-Ukraine Free Trade Agreement. Ukraine is ready to ratify the Canada-Ukraine FTA.

On March 7, 2017, BillC-31 “An Act to implement the Free Trade Agreement between Canada and Ukraine passed second reading in Canada’s Senate.  Bill C-31 is now being reviewed by the Senate of Canada Standing Committee on Foreign Affairs and International Trade.  After the Report is prepared by the Standing Committee on Foreign Affairs and International Trade, Bill C-31 returns to the Senate for third reading and debate.  After third reading, the Canada-Ukraine Free Trade Agreement (“Canada-Ukraine FTA”) can be ratified.  This should happen at the same time at the Canada-EU CETA, which is expected to be ratified by Canada soon (maybe as early as April 1 or May 1).

The Canada-Ukraine FTA is a trade in goods agreement (that is, it does not cover services and investment). Canada has agreed to reduce most customs duty rates to “free” or 0% immediately upon implementation on goods that meet the rules of origin.  Pursuant to Chapter 2 of the Canada-Ukraine FTA, each party shall reduce or eliminate customs duties on goods originating in either party in accordance with the tariff elimination schedules in Annex 2-B.  In Article 1 of Annex 2-B, Canada agrees to eliminate customs duties on all goods in Chapters 1-97 of the Harmonized System that provides for Most-Favoured-Nation rate of duty, with the exception of any goods Canada has listed in Annex 2-B (which is a short list).  We have prepared a chart that sets out H.S. Chapters and which Chapters become duty-free immediately upon implementation.

Some of the goods that Canadian importers may look forward to importing on a duty free basis are:

  • Ukrainian beer;
  • Ukrainian vodka;
  • Ukrainian chocolate;
  • Pysanka/pysanky;
  • Table cloths;
  • Ceramics;
  • Clothes;
  • Toys;
  • Copper; and
  • Walking sticks.

To know more about Ukraine’s top exports to various countries around the world, please refer to this helpful resource.

For more information about the Canada-Ukraine Free Trade Agreement, please contact Cyndee Todgham Cherniak at 416-307-4168 or cyndee@lexsage.com.