Modernized Canada-Ukraine free trade agreement enters into force

The modernized free trade agreement between Ukraine and Canada has officially entered into force on July 1.

That's according to Global Affairs Canada, Ukrinform reports.

"This is a significant milestone in the Canada-Ukraine bilateral relationship. The modernized CUFTA will enhance trade, increase economic cooperation and support Ukraine's financial reform and efforts to rebuild. It also signals Canada's unwavering commitment to Ukraine’s long-term security, stability and economic recovery following Russia’s full-scale invasion of the country," the Canadian foreign ministry said.

According to the statement, the modernized agreement is a win-win for both countries.

"It maintains the preferential market access gained in the original 2017 CUFTA; it updates and adds new language in areas such as trade in services, investment, temporary entry for businesspeople, telecommunications, digital trade, labor and the environment; and it adds a dedicated chapter on trade and Indigenous Peoples, a first in each country's history," the ministry said.

It added that "from the beginning of Russia's invasion, Canada has led international support for the Ukrainian people."

"The modernized CUFTA is another example of Canada's support for not only rules-based international trade and Ukraine's efforts to rebuild, but also for the country's long-term security, stability and recovery," the ministry said.

Bilateral trade between Canada and Ukraine reached a peak of approximately $447 million in 2021, decreasing to $422 million in 2022 due to Russia's illegal invasion of Ukraine in February 2022. In 2023, trade surged to $695 million, largely due to Canadian exports of various military equipment to Ukraine to aid in the war effort.

In the first four months of 2024, Ukrainian exports to Canada increased by 2.8 times, to $66 million.

Photo: Office of the President of Ukraine