Prime Minister of Ukraine Denys Shmyhal and Prime Minister of Canada Justin Trudeau 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 Yuliia Svyrydenko, First Vice Prime Minister of Ukraine and Minister of Economy of Ukraine, the new Agreement brings significant changes to the trade regime between Ukraine and Canada. As part of this document, Ukraine and Canada also signed a Digital Trade Agreement, which became the second such agreement for our country after the corresponding agreement with the United Kingdom.

"The Government of Ukraine aims to provide Ukrainian entrepreneurs in foreign markets with the most modern tools for business development and economic recovery of Ukraine. Therefore, back in January 2022, the team of the Ministry of Economy of Ukraine began negotiations on modernising the existing Agreement with Canada's Minister of International Trade, Export Promotion, Small Business and Economic Development Mary Ng. In the new Agreement, we combine trade in goods, services, investment and economic cooperation between Ukraine and Canada. The Agreement was prepared during the war, so it should address all the urgent needs of business and become an additional hallmark of our economy in the world," explained Yuliia Svyrydenko.

According to her, the main differences of the new Agreement will be that, in addition to the cancellation of tariffs, Ukraine and Canada are expanding opportunities for companies that have not only Ukrainian but also foreign components in their products.

"Tariffs will also be cancelled for those Ukrainian goods that have components originating from the EU, the European Free Trade Association, Great Britain and Israel. This should encourage the creation of production chains and make the location of production in Ukraine more attractive for foreign investors planning to supply their goods to the Canadian market," continued Yuliia Svyrydenko.

Another very important aspect of the Agreement will be that the new Agreement will allow the parties to do everything which is not forbidden.

"In the investment and services sector, we are applying a new liberal method – everything which is not forbidden is allowed. The agreement does not regulate what is allowed, but rather meticulously sets out exceptions to the complete freedom to provide services. And we do this in such a way that all regulation is as transparent, clear and predictable as possible," explained Yuliia Svyrydenko.

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

"Fully fledged investment regulation under free trade agreements is a new trend in the global economic world. This approach allows us to combine the freedom to do business as market access and guarantees of investment capital protection. In our agreement, we do this in the most modern language and provide an opportunity not only for Canadian companies to invest in Ukraine, but also for Ukrainian businesses to develop an international presence," said Yuliia Svyrydenko.

One of the sections includes the Digital Trade Agreement, which outlines all the fundamental freedoms in this area.

"This is the second Digital Trade Agreement that Ukraine has signed. The first one was signed with the UK in January this year. This is extremely important for Ukrainian entrepreneurs, as it is the domestic IT business that is recovering the fastest.

Such digital trade agreements are primarily focused on preventing future barriers and should reduce obstacles for Ukrainian businesses to participate in global digital trade. The Digital Trade 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," explained Yuliia Svyrydenko.

In addition, the new Agreement will cover financial services, temporary entry for business persons, telecommunications, trade and gender, trade and small and medium-sized enterprises, and trade and indigenous peoples. The new Agreement will also include updated chapters on rules and procedures of origin, competition policy, monopolies and state-owned enterprises, public procurement, environment, labour, measure development and administration, as well as transparency, anti-corruption and responsible business conduct.

"Nowadays, issues of reputation, values, environmental protection and sustainability are at the forefront of the international economy. If you want to sell your product or get investment, you have to demonstrate that you adhere to the best ESG standards. The relevant sections in the Agreement clearly show that Canada and Ukraine are on the same page on these issues. This means that it is an additional advertisement for Ukrainian business," said Yuliia Svyrydenko.

The Free Trade Agreement between Ukraine and Canada should help us conclude similar agreements with other countries.

"It is based on the same principles used in the Trans-Pacific Partnership Agreement, which brings together Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, as well as the updated North American Free Trade Agreement between the United States, Mexico and Canada. The Ministry of Economy has already drafted an act on official negotiations on joining the Trans-Pacific Partnership Agreement. Now our goal is to receive a decision from the member states in June on the consideration of Ukraine's application. Thanks to the updated agreement, we will receive not only political but also expert support for our application from Canada.

While the war continues and we are defending our land, I want to ensure that businesses have the best possible access to foreign markets to facilitate economic recovery and to ensure that peace and prosperity prevail in Ukraine," summed up Yuliia Svyrydenko.