Ukraine-Canada free trade zone launches August 1

A free trade zone took effect on Aug. 1 that opens
Cnada’s market to 98% of Ukrainian goods, including food products, chemicals,
hydrocarbons and machinery, the dw.com news site
reported. Customs-free quotas were set for wheat, barley, eggs, beef and pork.
In its turn, Ukraine removed customs duties for 72% of Canadian products,
including fish, grains, juices, peanuts and mineral water. Certain duties will
be removed in periods of 3.5 to seven years.

Ukrainian producers of sunflower oil, confectionaries,
alcohol, juice, metallurgy, chemicals and ceramics stand to gain the most,
reported Ukraine’s economy and trade ministry. Exports stand to grow 3.5%
annually, creating up to 600 jobs. At the same time, Ukraine’s cancellation of
duties will cost the state budget USD 1.2 million during the agreement’s first
year. Yet ministry officials said that will be compensated by boosted foreign
investment.

Canada is not among Ukraine’s key trading partners: in
2016, Ukraine exported USD 29 mln (0.1% of its total) worth of goods and
imported USD 217 mln worth (0.6% of total imports).

Zenon Zawada: The more customs-free and tax-free international trade opportunities,
the better for Ukrainian business. The mentioned statistics indicate the free
trade area won’t have a big impact on the Ukrainian economy anytime soon, but
the flows of trade will grow stronger should conditions in Ukraine stabilize.