WT/REG388/M/1  
 
27 June 2018  
(18-4049) Page: 1/4 
Committee on Regional Trade Agreements  
Eighty -ninth Session    
 
FREE TRADE AGREEMENT  BETWEEN CANADA AND U KRAINE  
(GOODS ) 
NOTE ON THE MEETING OF 19-20 JUNE 2018 
Chairman: Ambassador Julian  BRAITHWAITE  (United Kingdom ) 
1.1.  The 8 9th Session of the Committee on Regional Trade Agreements (hereinafter 'CRTA' or the 
'Committee') was convened in Airgram WTO/AIR/RTA/1 4/Rev.1 dated 7  June 2018.  
1.2.  Under Agenda Item E.II of the Session, the CRTA considered the Free Trade Agreement 
between Canada  and Ukraine , goods, (hereinafter  "the Agreement").  
1.3.  The Chairman  said that the Agreement had entered into force on 1 August 2017.  It had been 
notifie d to the WTO by the Parties on 13  September 2017 under Article  XXIV:7(a) of the 
GATT  1994 and the Understan ding on the Interpretation of Article  XXIV of GATT 1994 as an 
Agreement establishing a free trade area (document  WT/REG3 88/N/1/Rev.1 ). The text of the 
Agreement was available, together with its Annexes, on the Parties' official websites.  The Factual 
Presen tation on the goods aspects (document  WT/REG388/1 dated 21 March 2018) and questions 
and replies on this Agreement (document WT/REG388/2 dated 24 May 2018) ha d been distributed.  
1.4.  The representative of Canada  thank ed the WTO Secretariat for preparing a detailed factual 
presentation on the Canada -Ukraine FTA, and appreciate d the Government of Ukraine 's 
contribution to the process. He also thank ed WTO Members for their insightful questions about the 
Agreement.  
1.5.  Canada was committed to the continued deepening of its relations with Ukraine, including 
through the opportunities generated through the Agreement . The entry into force of the 
Agreement  on 1 August 2017 had represented  a significant milestone in Canada 's bilateral  
relationship with Ukraine. It was a high -quality agree ment, with outcomes that satisfied  Canada 's 
commercial interests and facilitate d trade between Canada and Ukraine. While it was still too early 
to assess the impact of the Agreement, it had entered int o force during a period where trade 
between Canada and Ukraine was on the upswing. Following a significant decrease in 2014, 
Canada -Ukraine bilat eral merchandise trade continued to rise and in 2017, reaching  its highest 
levels in almost ten years.  
1.6.  The Agreement  included , among others, chapters on market access for goods, sanitary and 
phytosanitary measures, technical barriers to trade, intellectual property, Government 
procurement, and institutional provisions, including those related to transparency and d ispute 
settlement. It also contained  chapters on labour and the environment.  
1.7.  With respect to market access for trade in goods, u pon entry into force of the Agreement, 
Canada had immediately eliminated duties on 99.9%  of recent imports from Ukraine. This in cluded  
elimination by Canada of tariffs on all manufactured go ods, fish and seafood, and 99.9%  of 
agricultural imports from Ukraine. Similarly, Ukraine had immediately elimina ted tariffs on 
approximately 86% of recent imports from Canada, with the balance of tariff liberalization, 
including phase -outs or reductions, to be implemented over periods of up to seven years. This 
included  elimination by Ukraine of tariffs on all Canadian exports of manufactured goods, fish and 
seafood, and the elimination of the v ast majority of Ukraine 's agricultural tariffs, including a duty -WT/REG388/M/1  
 
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  free tariff rate quota (TRQ) for pork. Essentially, the Agreement  would  eliminate all tariffs on 
goods currently trad ed between Canada and Ukraine.  
1.8.  The Technical Barrie rs to Trade (TBT) chapter built  on the WTO Agreement on TBT, 
incorporating all its substantive provisions and making them subject to the CUFTA 's dispute 
settlement provisions, and required  each Party to designate a Contact Point to facilitate 
communication on TBT -related matter s. 
1.9.  The sanitary and phytosanitary measures (SP S) chapter affirmed  the Parties ' rights and 
obligations under  the WTO SPS Agreement, required  each Party to designate a Contact Point to 
facilitate communication on SPS tra de-related matters, and included  provisions requiring the 
Parties to work expeditiously to resolve issues.  
1.10.   With respect to intellectual property (IP), t he intell ectual property chapter included  
provisions that contribute d to the international legal framework on the protection and enforcement 
of intellectual property rights. The CUFTA 's provisions on the enforcement of IP rights would  assist 
Canadian and Ukrainian IP rights -holders to do business with confidence in each other 's markets.  
1.11.   The Government procurement chapter committed  the Parties to  provide non -discriminatory 
market access to procurement of covered goods and services above specified thresholds by 
identified entities.  For covered procurements, procuring entities from Canada and Ukraine would  
treat goods, services and suppliers of the other Party in the same manner as domestic goods, 
services and suppliers. Canada and Ukraine had agreed to incorporate into the  Agreement  the 
same procedural rules and market access commitments as those found in the revised WTO 
Agreement on Government Proc urement, to which both Canada and Ukraine were party.  
1.12.   With respect to environment and labour, the Agreement  set out commitments pertaining to 
high environmental standards and strong environmen tal governance, which reinforced  Canada and 
Ukraine 's mutual co mmitment to maintain high levels of environmental protection while expanding 
their trade and inves tment relationship. It also set  out commitments pertaining to labour; 
specifically comprehensive obligations to respect a broad range of internationally recog nized labour 
rights as well as an enforceable dispute settlement mechanism to ensure com pliance with these 
obligations. At the time of entry into force, the environment and labour chapters were the most 
comprehensive Ukraine had  ever negotiated. These obligations would  ensure a level playing field 
for Canadian and Ukrainian companies as both countries commit ted to not lowering their levels of 
environmental and labour protection to attract trade or investment, and to  enforce their  respective 
laws. The Agreement  also guaranteed  the right of both Canada and Ukraine to set their own 
environment and lab our priorities and protections.  
1.13.   The Agreement  contained  relevant chapters on a range of important matters, including: 
rules of origin a nd origin procedures; trade facilitation; trade remedies; monopolies and state 
enterprises; electronic commerce; trade -related cooper ation; and dispute -settlement. He looked  
forward to working closely with Ukraine to fully implement and further promote the  Agreement so 
that both countries could  capitalize on its many benefits.  He welcomed questions and comments 
from Members at the meeting.  
1.14.   The representative of Ukraine  welcomed  the consideration  of the Agreement by the CRTA . 
He emphasize d the substantial w ork done by the WTO Secretariat jointly with the governments of 
both Parties  in the preparation of the factual presentat ion. It provided  WTO members with detailed 
information under the WTO Transparency Mechanism for RTAs. He also  express ed gratitude to 
WTO members for  the questions and interest showed in the consideration of the Agreement . 
1.15.   Ukraine and Canada had  close historical ties, as Canada had been  the first western country 
to have  recognized the independence of Ukraine in December 1991. Bilateral relations between the 
two countries had been  further strengthened by  the support of the Ukrainian -Canadian 
community.   
1.16.   He expressed Ukraine's satisfaction that its bilateral  relations with Canada had been  
broaden ed by such a cornerstone document as the free trade A greement , and would  contribute to 
the harmonious development and expansion of world and regional trade and provide  a predictable 
framework for business  activity.  As had been  mentio ned by the delegation of Canada, the WT/REG388/M/1  
 
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  provisions of the Agreement  were built on the respective rights and obligations of Ukraine and 
Canada under the WTO Agreement.  
1.17.   Ukraine believed  that the Agreement  was diversified and cover ed areas such as: market 
access  for goods; food safety/sanitary and phytosanitary measures; technical regulations  and 
conformity assessment ; Government  procurement; customs and trade facilitation; competition 
policy; intellectual property  rights protection ; environment al protection ; and, something that was 
remarkably new for Ukraine, commitments in labour protection. Comprehensive commitments by 
both Parties  in the labour chapter were aimed at ensuring that neither Ukraine nor Canada would 
put their interests in encouraging trade or investment over internationally recognized labour 
principles and rights. With reference to the commitments on market access for goods he noted 
that, notwithstanding the fact that tariffs for goo ds traded between the P arties were being 
eliminated, both Ukra ine and Canada had  the right to secure their sensitiv ities with respect to 
internal production and consumption policies.  Moreover, the rules of origin and origin procedures 
under the Agreement , in particular exporter self -certification provide d for greater  transparency, 
facilitated trade and provided  clear obligations for producers and exporters, as well as for the  
customs authorities.  
1.18.   He noted the increase in bilateral trade  in 2017 comparing to 2016,  although  it was less 
than a year from 1 August 2017 whe n the Agreement had  entered into  force. Bilateral trade in 
goods had amounted to about US$350 million in 2017, showing an increase by over 40% 
comparing to the previous year. The three commodities most imported by Canada from Ukraine 
had been : base metals, machinery and equipment as well as tanning extracts (representing 
respectively  33%, 11%, and 8% of total import s from Ukraine ). Mineral products , representing 
approximately 61% of Ukraine's imports from Canada , had dominated , followed by phar maceutical 
products (9%) and machinery and equipment  (8% of total imports from Canada).  
1.19.   In the context of bilateral cooperation and assistance Ukraine was grateful to Canada for 
support in implementing necessary reforms that would  stimulate economic develo pment , including 
combating  corruption  and the introdu ction of  measures aimed at  the creation of a predictable  
business environment . His Government belie ved that the Agreement would  fully contribute to this 
aim. Ukraine look ed forward to a fruitful discussi on and would  endeavour to answer all Members' 
questions in addition to the written answers already provided.  
1.20.   The representative of Japan  thanked Canada and Ukraine as well as the Secretariat for their 
comprehensive presentations. He note d that while the Agreement  did not deal with trade in 
services and investment, it had specific c hapters on environment, labour, and transparency.  It was 
his assessment  that the Parties had considered these areas to be important elements in their Free 
Trade Agreement.  
1.21.   The r epresentative of the United States  thanked the Parties under review and the 
Secretariat st aff for their efforts to prepare the Factual Presentation and to bring this important 
regional trade agreement to the Committee for review. She appreciated the presen tations made by 
the Parties that had introduced the Agreement to the Committee and provided useful context for 
how th e Agreement supported the overall bilateral trade relationship. Looking at goods coverage, 
she noted that Canada's tariff liberalization wa s front -loaded with only 16 tariff lines subject to 
staging.  Ukraine appeared to have eliminated a sizeable number of tariff lines at  entry into force 
with a further elimination in 2022. However, she noted that a number of agricultural tariff lines 
had bee n excluded from the Agreement altogether. In the case of Canada there were a number of 
lines where tariff s exceeded 250%. She also noted that there were a number of transparency 
provisions in the Agreement and she congratula ted the Parties on including the se important 
disciplines that ensured  that laws, administrative proceedings, and appeal procedures were 
published. Additionally, she noted the customs and trade facilitation provisions that reinforced 
important principles such as simplified release procedu res, transparency o f fees and charges, 
advance ruling s on tariff classification, and review and appeal of administrative actions. She 
thank ed the Parties for the opportunity to review and discuss this important Agreement.  
1.22.   The representative of  the Europea n Union  also thanked the Parties for their interesting 
presentations of their Agreement as well as the Secretariat for the preparation of the Factual 
Presentation. The EU  had a  particular interest as both Parties were important partners  of the EU . 
She comm ended the Parties for the ambitious tariff liberalization in the Agreement as well as the 
cross-cutting transparency obligations. The EU  also attached great importance to provisions on WT/REG388/M/1  
 
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  trade and sustainable development and noted the social environmental ob ligations in the 
Agreement. She made  comments  on two Chapters that the Parties had mentioned  during their 
presentations. First, on Government procurement, she wanted to hear from the Parties why no 
commitments had been  taken on sub -central entities and, wi th respect to market access she 
wanted to know whether the mutual market access commitments went beyond the ir commitments 
under the GPA. Second, with respect to intellectual property, she noted that the Chapter was fairly 
limited and also noted that GIs were limited to wine s and spirits , leaving out agricultural products 
and wanted to hear the Parties assessments on these two aspects.  
1.23.   The representative of Mexico  thank ed the Secretariat fo r the work done to prepare the 
Factual Presentation and Canada and Ukraine for their replies. Mexico had put questions to Canada 
and Ukraine with respect to  current payments, movements of capital and e -commerce. With 
regard to the first two topics, his del egation had noted from the replies by Canada and Ukraine 
that these topics were not included in the Agreement but that it would be possible to look into 
these two years from the entry into force of the Agreement. With regard to the topic of e -
commerce, the  Agreement  had reproduced the moratorium on customs duties and fees and 
charges on pr oducts delivered electronically.  Mexico  did not have further questions.  
1.24.   In response the representative of Canada  thanked  the Members who had provided 
comments and question s which  was very much appreciated. With respect to the EU's questions , on 
sub-central entities, he indicated that the market access commitments in the Agreement had been  
based on a balance of concessions. Both Canada and Ukraine had access to sub -central 
procurements as parties to the GPA. As for w hether market access commitment s went beyond 
their commitment s under the GPA, Canada and Ukraine had made  key commitments on 
transparency , which  would also apply to certain non -covered procurements. These extended  
transparency commitments would apply when federal or central level procuring entities would use  
open tendering process for procurement values beyond 124,000 Canadian dollars and the 
applicable thresholds for goods services or construction services. As reg ards the intellectual 
property (IP) chapter, Canada and Ukraine believed that it affirm ed the TRIPS Agreement and built  
upon this with several additional provisions including on geographical indications (GI), as had been 
mentioned, IP enforcement, and spec ial measures against copyright infringement on the internet. 
Specifically in terms of GIs, he noted that the IP chapter listed the name s of 23 Canadian wine 
terms and 2 spirit terms for Canadian whiskey and Canadian rye whiskey that were eligible for 
prote ction as GIs upon application to and approval by the Ukrainian authorities. The Chapter also 
listed names of 6 Ukrainian wine ter ms and 1 spirit term  that were eligible for protection as GIs 
upon application to and approval by the Canadian authorities. He believed that these provisions 
provided greater certainty that the Canadian and the Ukrainian terms remained exclusive to 
Canadian and Ukrainian producers.  
1.25.   The representative of Ukraine  also thanked the Members  for their questions, as well as 
Canada for it s comprehensive answers. He thought that there was room for improvement in  the 
Free Trade Agreement and referred to the  special mechanism for improvement of the Agreement. 
In relation to the  question by the EU, he noted  the existence of  both the Deep and C omprehensive 
Free Trade Agreement concluded by Ukraine with the EU and the Agreement  between Ukraine and  
Canada. He  hoped that the three sides would be able to draw benefits from their triangular 
relation s. 
1.26.   The Chairman  concluded by saying that considerati on of the Goods Aspects of the Free 
Trade Agreement between Canada and Ukraine  had allowed the Committee to clarify a number of 
questions and it could now conclude oral discussion of the RTA in accordance with paragraph 11 of 
the Transparency Mechanism. If  any delegations wished to ask follow -up questions they were 
invited to forward submissions in writing to the Secretariat by 26 June 2018 and Parties were 
asked to submit replies in writing by no later than 10 July 2018. In accordance with paragraph 13 
of the Transparency Mechanism all written submissions, as well as minutes of the meeting would 
be circulated promptly, in all WTO official languages, and would be made available on the WTO 
website.  
1.27.   The Committee took note  of the comments made.  
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