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 2017, trade and economic relations between Ukraine and Canada have gained positive dynamics and volumes of bilateral trade have increased. For the first time since 2014, we managed to overcome the negative trends in bilateral trade cooperation. The progress is due to the Canada-Ukraine Free Trade Agreement (CUFTA), which came into force on August 1, 2017. According to the State Statistics Committee of Ukraine the total trade turnover between Ukraine and Canada amounted to 477.7 million USD in 2017, export being USD 141.5 million, import - USD 336.2 million; the balance was negative and amounted to 194.7 million USD.
Trade in goods
According to the State Statistics Committee of Ukraine in 2017 the volume of bilateral trade in goods between Ukraine and Canada has increased in comparison to 2016 and amounted to 349.6 million USD. Compared to 2016, we can register an impressive increase of Ukrainian exports to Canada (by 74%), which amounted to 50.4 million USD. Imports of goods from Canada to Ukraine also increased (by 37%) and amounted to 299.2 million USD. The balance of bilateral trade in goods traditionally remains negative for Ukraine - $ 248.8 million.
The structure of export of goods from Ukraine to Canada is as follows: copper and articles from it - 15,5%; ferrous metals - 13.2%; tannic extracts - 11,3%; nuclear reactors, boilers and machines - 10,2%; means of land transport (except for railway transportation) - 7.7%; processed vegetable products - 5,2%; wood and wood products - 3.7%; milk and dairy products, poultry, eggs, natural honey - 3.4%; articles of ferrous metals - 3,2%; railway locomotives - 3%.
It is also worth noting that in 2017 there was a significant growth of Ukrainian exports in terms of: glass and glass products; tools and knives; clothing and textiles; pharmaceutical products; tobacco.
The structure of import of goods from Canada to Ukraine was determined by deliveries of oil and products of its distillation, mineral fuel - 61.3%; pharmaceutical products - 9.2%; nuclear reactors, boilers, machines - 7.5%; fish and crustaceans - 6.9%; land transportation (except for railway) - 4.2%.
Trade in services
According to the State Statistics Committee of Ukraine in 2017, the volume of bilateral trade in services between Ukraine and Canada amounted to 128.1 million USD, the exports of services from Ukraine to Canada being of 91.1 million USD (increased by 18%), and imports of services from Canada to Ukraine – of 37 million USD (decreased by 7.5%). The balance of bilateral trade in services is positive for Ukraine and amounts to 54.1 million USD.
the IT sector services dominate in the structure of export of services from Ukraine to Canada, making about 60,9% of the data; services on processing of material resources constitute 12,9% of the general services export of Ukraine to Canada; transport services - 9,1%; business services - 12%; repair and maintenance services, not included in other categories - 2.2%.
It is also worth noting the significant increase of Ukrainian services related to travel, construction.
The structure of import of services from Canada to Ukraine was determined by the provision of state and government services - 55.9%; business services - 27,8%; transport - 8,3%; the IT sector - 2.7%; travel services 2.2%.
According to available data of the State Statistics Committee of Ukraine, as of December 31, 2017, Canadian investments into the Ukrainian economy amounted to 49.6 million USD (as of January 1, 2017 - 41.1 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