On 14 March 2017 the Ukrainian Parliament adopted the Draft Law No. 0120 “On Ratification of the Free Trade Agreement between Canada and Ukraine” (hereinafter the “CUFTA Ratification Law”).
The Canada–Ukraine Free Trade Agreement (hereinafter the “CUFTA”) was signed in Kyiv on July 11th, 2016 in the presence of the President of Ukraine Petro Poroshenko and the Prime Minister of Canada Justin Trudeau.
The CUFTA envisages not only the removal of tariff barriers, but also a clear commitment to remove non-tariff barriers in the international trade during the 7 year transitional period.
The CUFTA provides for asymmetric trade liberalization so, after it has entered into force, Canada will open almost 98% of its domestic market for Ukrainian goods, whereas Ukraine will only open 80% of its domestic market.
Ukrainian products which will benefit from the CUFTA are sunflower oil, sugar, chocolate and confectionery, alcoholic beverages and beer, juice, clothing, ceramics, and products from the metallurgy and chemistry industries.
Furthermore, it is expected that the CUFTA will improve cooperation between the aircraft industries of both countries.
For the CUFTA to enter into force the president of Ukraine should sign and promulgate the CUFTA Ratification Law, the Senate of Canada should adopt the CUFTA in the final third reading, it should be signed by the governor general of Canada and the ratification documents should be exchanged.