Rada ratifies FTA agreement between Ukraine and Canada
The Verkhovna Rada has ratified the free trade area agreement (FTA) between Ukraine and Canada (No. 0120).
Some 272 people's deputies voted for this decision on March 14.
Verkhovna Rada Speaker Andriy Parubiy after voting said he would urgently sign the document.
The agreement was signed in Kyiv on July 11, 2016.
According to an explanatory note to the document, the ratification of the agreement will promote the development of bilateral trade and economic relations between Ukraine and Canada, will allow Ukrainian producers to benefit from customs-free access to the Canadian market, will open new markets for Ukrainian enterprises.
First Deputy Prime Minister, Minister of Economic Development and Trade Stepan Kubiv said in parliament that the results of the analysis conducted by research institutes show that the annulment of imports duties by Canada would help Ukrainian manufacturers of food, light, chemical, petrochemical and engineering industries to have the best advantages on the Canadian markets. On the other hand, the agreement would open opportunities for imports of raw materials and advanced technologies, which would prompt Ukraine's economic growth.
According to the projected calculations, the introduction of the agreement would result in minor losses of the national budget, including some $1.2 million from the annulment of imports duties in the first year when the document is in effect. It is expected that in medium term outlook the shortfall would be compensated thanks to VAT and growth of foreign direct investment.
Kubiv said that the FTA agreement with Canada implies the observation of transparency of procedures related to the origin of goods, drawing up of regulations and compliance assessment.
The ratification of the agreement would stimulate Ukrainian manufacturers to make competitive products. This would expand the range of exported goods and influence the economic development of the state.
The parliaments of the two countries are to ratify the agreement.
The document is pending the voting in the Senate of Canada (third reading), signing by the president of Ukraine and the governor general of Canada respectively and the exchange of the ratified documents.