Ukraine and Canada update the Free Trade Agreement
Countries, in particular, expand opportunities for enterprises with foreign component in their products
The Prime Ministers of Ukraine and Canada, Denys Shmyhal and Justin Trudeau, have announced the completion of negotiations on an updated Free Trade Agreement between the two countries. This document will replace the existing agreement that has been in effect since 2017.
This was reported by the press service of the Ministry of Economy.
According to Economy Minister Yulia Svyrydenko, the new agreement will make significant changes to the trade regime between Ukraine and Canada.
Ms. Svyrydenko added that the main differences of the new agreement would be that, in addition to abolition of tariffs, Ukraine and Canada would expand opportunities for companies that have not only a Ukrainian, but also a foreign component in their products.
"Tariffs will also be lifted on 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, make the location of production in Ukraine more attractive for foreign investors who plan to supply their goods to the Canadian market," the minister explained. She stressed that an extremely important element of the agreement would be that it would allow the parties to do everything that is not prohibited.
As part of this document, Ukraine and Canada also signed a Digital Trade Agreement, which became the second for Ukraine after the corresponding agreement with the UK.
"Such digital agreements are primarily aimed at preventing the appearance of barriers in the future and should reduce obstacles for Ukrainian businesses to participate in global digital trade. The Digital Agreement with Canada guarantees freedom of cross-border transfer of information, freedom to choose the location of equipment, freedom of source code, and open access to the Internet," Mr. Svyrydenko explained.
In addition, the new agreement regulates financial services, temporary entry for business persons, telecommunications, trade and gender, trade and small and medium-sized enterprises, as well as trade and indigenous issues.
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