Vol. 151, No. 14 — July 12, 2017
SI/2017-37 July 12, 2017
CANADA–UKRAINE FREE TRADE AGREEMENT IMPLEMENTATION ACT
Order Fixing August 1, 2017 as the Day on which the Act Comes into Force
P.C. 2017-837 June 20, 2017
His Excellency the Governor General in Council, on the recommendation of the Minister for International Trade, pursuant to section 44 of the Canada–Ukraine Free Trade Agreement Implementation Act, chapter 8 of the Statutes of Canada, 2017, fixes August 1, 2017 as the day on which that Act comes into force, other than section 43, which came into force on assent.
(This note is not part of the Order.)
This Order fixes the day on which the Canada–Ukraine Free Trade Agreement Implementation Act (the Act), other than section 43, comes into force.
This Order brings into force the provisions of the Act that are necessary to implement the Canada-Ukraine Free Trade Agreement (CUFTA) signed on July 11, 2016.
CUFTA will eliminate tariffs and create favourable conditions for exporters and importers, and provide a wide range of benefits and opportunities for Canadians covering the vast majority of sectors and aspects of Canada-Ukraine merchandise trade. CUFTA also has comprehensive environmental provisions and enforceable labour-related obligations.
The Act approves CUFTA and brings Canada into conformity with its commitments made under CUFTA.
The general provisions of the Act specify that no recourse may be taken on the basis of the provisions of Part 1 of the Act or any order made under that Part, or the provisions of CUFTA, without the consent of the Attorney General of Canada.
Part 1 of the Act approves CUFTA. It designates the Minister for International Trade as the principal representative of Canada on the Joint Commission, which oversees the implementation and operation of CUFTA, and provides for the appointment by the Minister of other persons to represent Canada on any committee or subcommittee referred to in Article 16.1 of CUFTA.
Part 2 of the Act amends existing laws (for example the Customs Act, the Customs Tariff and the Department of Employment and Social Development Act) in order to bring them into conformity with Canada’s obligations under CUFTA.
Part 3 of the Act provides that the provisions of the Act come into force on a day to be fixed by order of the Governor in Council, other than section 43, which came into force on royal assent.
Canada and Ukraine have enjoyed close bilateral relations since Canada became the first Western nation to recognize Ukraine’s independence on December 2, 1991. The bilateral relationship is further reinforced by strong people-to-people ties between the two countries, with over 1.2 million Canadians of Ukrainian heritage.
CUFTA negotiations were launched by both parties in May 2010. On July 14, 2015, Canada and Ukraine announced the conclusion of CUFTA negotiations following six rounds of talks. CUFTA includes chapters on national treatment and market access for goods, rules of origin and origin procedures, trade facilitation, emergency action and trade remedies, sanitary and phytosanitary measures, technical barriers to trade, intellectual property, government procurement, competition policy and monopoly and state-owned enterprises, electronic commerce, labour, environment, trade-related cooperation, and institutional provisions, including those related to transparency and dispute settlement.
Upon entry into force of CUFTA, approximately 86% of Ukraine’s recent imports from Canada will be duty-free, with tariffs on the balance of imports to be phased out or reduced over a maximum of seven years. This includes elimination by Ukraine of tariffs on all imports of industrial products from Canada, as well as fish and seafood, and the vast majority of its agricultural tariffs. Similarly, upon entry into force, Canada will eliminate duties on 99.9% of recent imports from Ukraine. Ukraine excluded a limited number of products from CUFTA, namely raw and refined sugar. Canada excluded all over-quota tariffs for supply-managed products from tariff elimination, as well as refined sugar.
Key Canadian products that will benefit from duty-free access to Ukraine include beef, fresh and chilled pork, pulses, grains, canola oil, processed foods, animal feed, certain frozen fish, caviar, certain iron and steel products, plastics and cosmetics. In addition, Canadian exports of certain pork products (frozen pork, certain pork offal, and certain pork fat) will be eligible for duty-free market access under an annual tariff quota with a volume that exceeds current exports by a wide margin.
From 2014 to 2016, merchandise trade between Canada and Ukraine totalled approximately $298 million (less than 1% of total Canadian two-way merchandise trade with the world), ranking Ukraine as Canada’s 76th largest trading partner. Over this period, Canada’s merchandise exports to Ukraine averaged $207 million, led by coal, fish and seafood, and pharmaceuticals. Canada’s merchandise imports from Ukraine totalled an average of $91 million, led by iron and steel, soybeans, and paints and dyes.
Costs associated with CUFTA will be managed within existing departmental and agency budgets.
Provincial and territorial representatives were regularly debriefed on the progress of CUFTA negotiations and were consulted closely through standing consultative mechanisms, such as the Committee on Trade.
Canadian industry and other stakeholders were extensively consulted before and during negotiations to gauge Canadians’ interests and priorities for the negotiations. In the run-up to and following the announcement of the conclusion of negotiations, CUFTA has been generally supported by stakeholders.
During the legislative process in the House and Senate, interested parliamentarians received briefings on CUFTA and its implementing legislation, and parliamentary committees reviewed and approved the legislation after holding hearings that included representation by organizations and individuals with expertise or interest in the subject matter.
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