On June 1, 2017, the Canada-Ukraine Free Trade Agreement Implementation Act (Bill C-31) received Royal Asset in Canada's Hose of Commons. On May 18, 2017, Bill C-31 passed third reading in Canada's Senate. On February 14, 2017, Bill C-31 passed third reading in Canada's House of Commons. The remaining step is ratification by Canada and implementation. Are you ready?
The Canada-Ukraine FTA is a trade in goods agreement (that is, it does not cover services and investment). Canada has agreed to reduce most customs duty rates to "free" or 0% immediately upon implementation on goods that meet the rules of origin. Pursuant to Chapter 2 of the Canada-Ukraine FTA, each party shall reduce or eliminate customs duties on goods originating in either party in accordance with the tariff elimination schedules in Annex 2-B. In Article 1 of Annex 2-B, Canada agrees to eliminate customs duties on all goods in Chapters 1-97 of the Harmonized System that provides for Most-Favoured-Nation rate of duty, with the exception of any goods Canada has listed in Annex 2-B (which is a short list). We have prepared a chart that sets out H.S. Chapters and which Chapters become duty-free immediately upon implementation.
Some of the goods that Canadian importers may look forward to importing on a duty free basis are:
- Ukrainian beer;
- Ukrainian vodka;
- Ukrainian chocolate;
- Pysanka/pysanky;
- Table cloths;
- Ceramics;
- Clothes;
- Toys;
- Copper; and
- Walking sticks.
Some of the good that Canadian exporters may look forward to exporting are:
- grain,
- canola;
- beef,
- pork;
- fish;
- wines/ice wines;
- maple syrup;
- softwood lumber;
- animal feed;
- medications;
- cosmetics and skin care;
- cars;
- mining equipment;
- semi-trailers;
- air compressors;
- tires;
- asphalt;
- plastics; and
- etc.
The Canada-Ukraine FTA does not cover services, financial services, investment or energy.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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