Updated Canada-Ukraine free trade agreement to take effect on July 1

An updated Canada-Ukraine Free Trade Agreement (CUFTA) is taking effect on July 1, Ukrainian media have reported with reference to the Economy Ministry.

Ukrainian First Deputy Prime Minister and Economy Minister Yulia Sviridenko and Canadian Minister of Export Promotion, International Trade and Economic Development Mary Ng issued a joint statement on the updated agreement on June 26, it said.

The updated agreement provides for liberalizing the services market based on a negative list of non-conforming measures, implying that anything not included in this list is permitted, while investment protection shall be bolstered by new comprehensive and modern instruments to maximize the development of trade in services between Ukraine and Canadian companies, according to the economy ministry.

CUFTA would also entitle employees of Ukrainian companies planning to provide services in Canada to apply for temporary entry based on eased and extended terms.

The agreement should also help Ukraine build a free and open digital economic ecosystem and promote the development of digital technology.

The agreement permits the use of components from the European Union, the United Kingdom, and Israel for goods exported to Canada duty free.

The agreement attaches special significance to environment protection, labor, transparency, and responsible business practices.

Trade between Ukraine and Canada reached its peak of around 447 million Canadian dollars in 2021, followed by its decline to 422 million Canadian dollars due to the crisis. In 2023, trade between the two countries was up by more than 55% to 695 million Canadian dollars. Ukrainian exports to Canada grew 2.8 times to $66 million in the first four months of 2024.

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