Trade and economic relations between Ukraine and Canada
Trade and Economic Relations between Ukraine and Canada
Analysis of data of the State Statistics Committee of Ukraine shows that in 2018, trade and economic relations between Ukraine and Canada continued to show positive dynamics and increase in the volumes of bilateral trade. According to the State Statistics Committee of Ukraine the total trade turnover between Ukraine and Canada amounted to 509.3 million USD (477.7 million USD in 2017): export –164.5 (in 2017 - 141.5), import – 344.8 (in 2017 - 336.2). Trade balance was negative and amounted to 180.3 million USD (in 2017 - 194.7 million USD).
Trade in goods
According to the State Statistics Committee of Ukraine in 2018 the volume of bilateral trade in goods between Ukraine and Canada has increased in comparison to 2017 and amounted to 411.3 million USD (in 2017 - 349.6): Ukrainian exports to Canada amounted to 78.2 million USD (in 2017 - 50.4); imports of goods from Canada to Ukraine amounted to 333.1 million USD (in 2017 - 299.2). The balance of bilateral trade in goods traditionally remains negative for Ukraine - $ 254.9 million.
The structure of export of goods from Ukraine to Canada is as follows: ferrous metals – 27.5%; copper and articles from it – 18.6%; tannic extracts – 9.9%; processed vegetable products – 7.7%; nuclear reactors, boilers and machines – 7.6%; means of land transport (except for railway transportation) - 6.2%; articles of ferrous metals – 3.1%; wood and wood products - 2.5%;
The structure of import of goods from Canada to Ukraine was determined by deliveries of oil and products of its distillation, mineral fuel – 49.2%; fish and crustaceans – 10.8%; pharmaceutical products - 7.4%; goods, purchased in ports – 6.9%; land transportation (except for railway) – 6.6%; nuclear reactors, boilers, machines – 6.2%.
Trade in services
According to the State Statistics Committee of Ukraine in 2018, the volume of bilateral trade in services between Ukraine and Canada amounted to 98 million USD (in 2017 - 128.1 million USD), the exports of services from Ukraine to Canada being of 86.3 million USD (in 2017 - 91.1), and imports of services from Canada to Ukraine – of 11.7 (in 2017 - 37). The balance of bilateral trade in services is positive for Ukraine and amounts to 74.6 million USD (in 2017 - 54.1 million USD).
The IT sector services dominate in the structure of export of services from Ukraine to Canada, making about 66.5% of the data; transport services – 17.9%; business services – 11.4%; travel services – 2.4%.
The structure of import of services from Canada to Ukraine was determined by the provision of business services – 39.7%; transport – 21.9%; royalty – 11.1%; the IT sector - 8.7%; travel services - 5.9%.
According to available data of the State Statistics Committee of Ukraine, as of December 31, 2018, Canadian investments into the Ukrainian economy amounted to 52.3 million USD (as of January 1, 2018 - 49.7 million USD).
Free Trade Agreement
On January 26, 2015 Canada’s Minister of International Trade, Ed Fast, and Ukraine’s Minister of Economic Development and Trade, Aivaras Abromavičius announced renewed negotiations toward a Canada-Ukraine Free trade Agreement to promote growth and prosperity in Ukraine.
July 14, 2015 - in the framework of the working visit to Canada of the Prime Minister of Ukraine Arseniy Yatsenyuk, the document on completion of negotiations regarding the establishment of a FTA between Ukraine and Canada was signed.
On July 11, 2016 - Canadian Prime Minister Trudeau, Ukraine’s President Poroshenko and Prime Minister Groysman witnessed the signing of the milestone Canada-Ukraine Free Trade Agreement in Kyiv.
The provisions of the Agreement on free trade between Ukraine and Canada provide, in particular, the deepening of trade and economic cooperation, including trade in industrial and agricultural goods, intellectual property protection and regulation of public procurement.
When the Agreement entries into force Canada makes free access to 98% of its goods market to Ukrainian exporters immediately. But Ukraine completely abolishing import duties will have a transition period before the liberalization of the market.
Agreement entered into force on August 1st, 2017.
In the long term for the business the Agreement will be the opportunity to diversify trade flows, will be the impetus to modernize Ukrainian enterprises for the production of goods with high added value for the export to Canada.
Canada-Ukraine Chamber of Commerce
The Chamber is a privately led initiative whose purpose is to facilitate trade and investment relations between Ukraine and Canada by organizing and sponsoring trade missions, seminars and trade conferences in addition to offering access to specific areas of business expertise and consulting resources to both the business communities in Canada and Ukraine.
The Canada-Ukraine Chamber of Commerce was incorporated under Canadian law and began its operations in 1993. Over the course of the next years, the Chamber grew to include dozens of Canadian and Ukrainian companies with CUCC operated offices in Toronto, Canada and Kyiv, Ukraine.
Canada-Ukraine chamber of commerce
145 Evans Avenue, Suite 211
Toronto ON M8Z 5X8