This decision ensures the continuation of duty-free import of Ukrainian products into Canada until June 9, 2025, originally set to expire on June 9, 2022.
Key Points:
Extension Details:
- The duty-free import policy for Ukrainian goods has been extended until June 9, 2025, as per order SOR/2024-111.
- This policy applies to products that have undergone the last substantial production process in Ukraine, excluding minimal operations like preservation, packaging, or dilution with water.
Economic Impact:
- Minister of Economy Yulia Svyridenko expressed gratitude to Canadian partners for supporting the Ukrainian economy through increased exports and waived customs duties.
- This move is seen as a significant contribution to Ukraine's economic stability amid ongoing challenges.
Regulations and Benefits:
- The exemption covers anti-dumping and countervailing duties on goods that have acquired their main characteristics in Ukraine, according to the Law on Special Import Measures.
- Importers must apply within two years after importing the goods to receive the benefits.
- The ban on importing goods from certain regions of Ukraine, as per sanctions under the Law on Special Economic Measures, remains in force.
Trade Growth:
- According to the State Statistics Service, the export of goods from Ukraine to Canada in the first quarter of 2024 increased by 2.66 times, reaching $47.43 million.
- This extension aims to further boost this growth by facilitating easier access to the Canadian market for Ukrainian products.
Historical Context:
- On June 9, 2022, Canada initially introduced the duty-free import policy to support Ukraine.
- One year ago, Canada's Deputy Prime Minister and Minister of Finance, Chrystia Freeland, announced the extension of this policy.
- On April 11, 2023, the Prime Ministers of Ukraine and Canada signed a joint declaration completing negotiations on an updated free trade agreement, replacing the existing agreement from 2017.
Conclusion
The extension of the duty-free import policy by Canada is a strategic move to support Ukraine's economy by enhancing its export capabilities. This policy not only aids in economic stability but also strengthens trade relations between the two countries, fostering a more robust and resilient economic partnership.
