Ukraine pushes for speedy completion of updated trade agreement with Canada as talks resume

Amid the ongoing Russian invasion, Ukraine is pushing Canada to resume trade negotiations and finalize a modernized agreement expeditiously. The two countries agreed to restart trade negotiations in May and the chief negotiators met for the first time last month. Global Affairs briefing information that was obtained by The Hill Times notes that Ukraine requested an expedited modernization of the trade agreement to assist with its economic recovery during a May 7 ministerial meeting. The information also notes that chief negotiators met for the first time on the margins of the recent World Trade Organization (WTO) ministerial meeting in Geneva in June, and that officials have recommenced talks with regular technical discussions to finalize a deal in the coming months. The Canada-Ukraine Free Trade Agreement (CUFTA) has been in force since August 2017. It covers goods-based trade, but doesn’t include services or investments. Negotiations for a modernized Canada-Ukraine free trade agreement were initially launched on Jan. 27, but were put on hold after Russia’s Feb. 24 invasion of Ukraine. A spokesperson for International Trade Minister Mary Ng says Canada and Ukraine are working to complete a new trade deal this year. The Hill Times photograph by Andrew Meade International Trade Minister Mary Ng’s (Markham-Thornhill, Ont.) office and the Ukrainian Embassy have confirmed that trade talks have restarted. During the May 7 meeting between Ng and Ukrainian First Vice Prime Minister and Minister of Economic Development and Trade Yulia Svyrydenko, the modernization of the CUFTA was discussed, according to Ukrainian Embassy spokesperson Oksana Kyzyma. “The Ukrainian side underlined the necessity to hold and conclude the negotiations in the shortest possible terms,” she said in an email. “Since that time, negotiation teams been in constant contact with each other discussing the draft agreement.” Kyzyma said there is no set timeframe to complete an agreement. “Both sides understand its importance and are doing their best to finalize it as soon as it is possible,” she said. Chris Zhou, a spokesperson for Ng, said in an email that Ng and Svyrydenko agreed on May 7 to resume discussions to modernize the CUFTA. He also confirmed that chief negotiators met at the WTO ministerial in June and that both sides agreed to “expedite the process” with a “tentative aim to conclude the updated agreement in 2022.” “Canadian and Ukrainian officials are holding regular technical discussions by virtual means,” he said. Typically, a modernized trade agreement would have to be passed by Parliament. Zhou said that as discussions are at an “initial stage,” it is “too early to speculate about what may be tabled in Parliament.” The House of Commons Committee for International Trade has held four meetings so far on a study looking into the modernization of the CUFTA. That study had been put on hold due to the war, said Conservative MP Randy Hoback (Prince Albert, Sask.), a vice-chair of the committee and his party’s international trade critic. Conservative MP Randy Hoback says the legislative timeline to pass an updated Canada-Ukraine trade agreement could be a quick one. The Hill Times photograph by Andrew Meade The committee last held a meeting on the study on April 6. Hoback said it hasn’t been notified yet of Ukraine’s desire to see a modernized deal completed expeditiously. “We’d be very open-minded to what they are proposing,” Hoback said. “I don’t see a lot of pushback from the Conservative side anyways, but I don’t see from NDP, Bloc, or Liberals, too.” “From our perspective, if the Ukrainians are requesting this and wanting to move forward, then I think we should try to accommodate as best we can,” he said. Hoback said what legislative path it will have to take will depend on how ambitious the deal is, noting that if it has a strong level of ambition it likely would have to go through Parliament, and committee. However, he suggested that if it's just a “tweak” in the agreement, it could be done through regulatory changes. He said the legislative timeline could be a quick one, especially with the committee having already started a study. “It’s not like we haven’t done any work on it yet. We just parked it, waiting for further directions,” he said. The House of Commons returns from its summer recess on Sept. 19. Jars Balan, a former director of the University of Alberta’s Canadian Institute of Ukrainian Studies, told The Hill Times that Kyiv wants to portray that war will end successfully for Ukraine and plan ahead. “It’s important for Ukraine to be seen to be doing this,” said Balan, who appeared before the House Trade Committee on April 4. He noted that finalizing a modernized trade agreement would send a message to Russia and the rest of the world. “Ukraine wants to portray that life is going on,” he said. Finishing an updated trade deal is a sign that the West expects Ukrainian independence to survive and continue as a viable sovereign state, Balan said. Given Canada’s history of supporting Ukraine, he said he doesn’t think the deal will be bogged down by “nitpicking.” “If anything, it will be hopefully fast-tracked to facilitate this to go through smoothly and happen sooner than later,” he said. Balan suggested that to help ensure Ukraine exports can continue, it would be useful for the West to station naval ships in the Black Sea to help the Port of Odessa to be able to operate. Speaking in front of the House Trade Committee on Feb. 16, Canada-Ukraine Chamber of Congress president Zenon Potoczny said that the CUFTA has laid “new foundations for trade, growth and investment in both countries,” but noted that it is still a work in progress. He said one issue that should be focused on is information and communications technology (ICT) services, as Ukraine is increasingly becoming a market where firms outsource their ICT work. “We currently see a rise in interest from Canadian ICT firms in outsourcing to Ukraine, as well as looking into opening their offices in the country due to the newly adopted law on digital economy facilitation, with highly attractive tax and regulatory conditions,” Potoczny said. In 2021, trade between Canada and Ukraine totalled more than $440-million. Former Ukrainian ambassador to Canada Andriy Shevchenko told the committee on April 4 that modernizing the CUFTA is “long overdue.” Former Ukrainian ambassador Andriy Shevchenko told the House Trade Committee that modernizing the CUFTA is 'long overdue.' The Hill Times photograph by Sam Garcia “We have built a very impressive base for the rapid growth of trade between our countries. The Russian invasion interrupted this, but I am absolutely sure that we will continue growth, and that, wherever possible, we should use every opportunity right now to remove trade barriers,” he said. Shevchenko also noted ICT as a potential area for the modernization agreement to focus on. “Ukraine is well known for its human talent in IT, and even today, as we speak, major Canadian companies rely on Ukrainian IT specialists,” he said. “We need to modernize CUFTA to make sure we meet all the global challenges.” nmoss@hilltimes.com The Hill Times

Ukraine pushes for speedy completion of updated trade agreement with Canada as talks resume

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Ukraine pushes for speedy completion of updated trade agreement with Canada as talks resume

Canada and Ukraine have resumed trade negotiations in hopes of completing a modernized deal this year.

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