Canada made another step towards the ratification of the agreement on free trade with Ukraine
The Senate of Canada (Upper house of Parliament) has ratified in the second and penultimate reading the agreement on free trade zone with Ukraine, which the parties signed in July 2016.
“The Senate of Canada ratified the free trade agreement with Ukraine at the second reading. Voted “for” the 102 senators with the 105. Canada remained the final vote (third reading) the Senate and signing by the Governor General. Ukraine is preparing to ratify the agreement in the near future. I hope that the deputies will not fail”, – stated in the message of Ministry of economic development and trade of Ukraine.
The Agency expects that the free trade area would involve the removal of trade restrictions and the abolition of trade duties on main groups of goods within the grace period of 3-7 years. In particular, immediately after the entry into force will repeal the sales tax on fish, cereals, wine, juices, baked goods and clothing, metal products, hardware and electrical engineering. Within 3-7 years will cancel the duty on certain agricultural products, construction materials, engineering products, including components for aircraft, automobiles and tractors.
This document will give the opportunity for Ukrainian and canadian companies to participate in public procurement in both countries.
The agreement with Canada is more favorable than the agreement with the European Union. Of the 7 thousand of positions of the customs code of Canada, Ukraine will receive 6.9 thousands of items for duty-free and quota-free trade since the entry into force of the agreement.
For the transition period, Ukraine will protect its market, a special tariff will be gradually reduced to zero.
A small number of restrictions imposed by Canada to trade for some agricultural products, particularly poultry and dairy products.
Now Ukraine exports to Canada is almost three times less than imports. Thus, the free trade area can contribute to the alignment of the trade balance with Canada. Thus, according to experts, the most promising for Ukrainian exports will be agricultural products, aviation and IT sector.
In turn, Ukraine can increase the volume of investment.