Ukraine and Canada agree on an updated Free Trade Agreement

Ukraine and Canada have announced the conclusion of negotiations on an updated Free Trade Agreement between the two countries - this document will replace the existing agreement, which has been in force since 2017.

According to Yevropeiska Pravda, citing the press service of the Ministry of Economy, the heads of government of the two countries announced the completion of negotiations during Denys Shmyhal's visit to Canada.

The main differences of 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, the UK, and Israel".

"This should encourage the creation of production chains and make the location of production in Ukraine more attractive to foreign investors who plan to supply their goods to the Canadian market," explained First Vice Prime Minister, Minister of Economy of Ukraine Yulia Svyrydenko.

An important element of the agreement is that the new agreement will allow the parties to do everything that is not prohibited.

"The agreement does not regulate what is allowed but rather carefully sets out exceptions to the complete freedom of service provision. And we do it in such a way that all regulation is as transparent, clear, and predictable as possible," Svyrydenko said.

Guarantees for investors and an investment protection system based on the most modern legal instruments were also spelled out.

Author - Olena Madiak, 11/04/2023