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Ukraine and Canada Renew Free Trade Agreement

Countries are expanding opportunities for enterprises that have not only Ukrainian, but also foreign components in their products

Prime Ministers of Ukraine and Canada Denys Shmyhal and Justin Trudeau announced the completion of negotiations on an updated free trade agreement between the countries. This was reported on the website of the Ministry of Economy.

The document will replace the existing agreement that has been in force since 2017.

According to First Deputy Prime Minister – Minister of Economy Yulia Sviridenko , the new agreement introduces significant changes in the trade regime between the countries. Within its framework, Ukraine and Canada also signed an agreement on digital trade – the second for our state after the corresponding one with the UK, which was signed in January 2023.

“In the new agreement, we combine trade in goods, services, investment and economic cooperation between Ukraine and Canada. The agreement was prepared during the war, so it should take into account all the urgent needs of business and become an additional hallmark of our economy in the world,” Yulia Sviridenko explained.

The difference between the new agreement will be that, in addition to the abolition of tariffs, Ukraine and Canada are expanding opportunities for enterprises that have not only Ukrainian, but also foreign components in their products.

“Tariffs will also be canceled for those Ukrainian goods that have components originating from the EU, the European Free Trade Association, Great Britain and Israel. This should encourage the creation of production chains, make the location of production in Ukraine more attractive for foreign investors who plan to supply their goods to the Canadian market,” said the First Deputy Prime Minister.

In addition, the new agreement will allow the parties everything that is not prohibited, the document carefully writes out exceptions to the full freedom to provide services.

Separately, guarantees for investors, as well as an investment protection system, are prescribed.

As GMK Center reported, Ukraine is stepping up its trade and economic partnership with the UAE. In March, the parties discussed the expansion of economic and investment cooperation, the strengthening of trade, the imposition of sanctions against the Russian Federation. According to the First Deputy Prime Minister, the common goal of the parties is to expand mutually beneficial cooperation in many sectors of the economy, in particular, by concluding an Agreement on Comprehensive Economic Partnership. The share of metallurgical products in trade between countries is about 30%.

Source: GMK Center



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