On June 1, 2017, the Canada- Ukraine Free Trade Agreement Implementation Act (Bill C-31) received Royal Asset in Canada’s Hose of Commons.  On May 18, 2017, Bill C-31 passed third reading in Canada’s Senate.  On February 14, 2017, Bill C-31 passed third reading in Canada’s House of Commons.  The remaining step is ratification by Canada and implementation.  Are you ready?

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.

Some of the good that Canadian exporters may look forward to exporting are:

  • grain,
  • canola;
  • beef,
  • pork;
  • fish;
  • wines/ice wines;
  • maple syrup;
  • softwood lumber;
  • animal feed;
  • medications;
  • cosmetics and skin care;
  • cars;
  • mining equipment;
  • semi-trailers;
  • air compressors;
  • tires;
  • asphalt;
  • plastics; and
  • etc.

The Canada-Ukraine FTA does not cover services, financial services, investment or energy. For more information, please contact Cyndee Todgham Cherniak at 416-307-4168 or cyndee@lexsage.com.  Other articles are posted on the LexSage website.