WT/REG388/1  
 
21 March 2018  
(18-1711) Page: 1/33 
Committee on Regional Trade Agreements   
 
 
FACTUAL PRESENTATION  
FREE TRADE AGREEMENT  BETWEEN CANADA  AND UKRAINE  
(GOODS ) 
Report by the Secretariat  
This report, prepared for the consideration of the Free Trade Agreement between 
Canada  and Ukraine , has been drawn up by the WTO Secretariat on its own 
responsibility and in full consultation with the Parties. The factual presentation 
reproduces as closely as possible the terminology used in the Agreement and in the 
comments provided and does not imply official endorsement or acceptance by the 
Secretariat of such terminology. The report has been drawn up in accordance with the 
rules and procedures contained in the Decision for a Transparency Mechanism for 
Regional Trade Agreements (WT/ L/671) and thus does not imply any value judgement 
by the Secretariat regarding the contents of the Agreement.  
Any technical questions arising from this report may be addressed to Mr. Jean-Daniel 
Rey (tel: +41 22 739 52 64 ). Any statistical questions arisi ng from this report may be 
addressed to Ms. Rowena Cabos  (tel: +41 22 739 5185). 
 
 
  WT/REG388/1  
 
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  TABLE OF CONTENTS  
Page 
1   TRADE ENVIRONMENT  ................................ ................................ ................................ . 4 
1.1   Merchandise trade  ................................ ................................ ................................ ....... 4 
2   CHARACTERISTIC ELEMENT S OF THE AGREEMENT  ................................ ......................  6 
2.1   Background Information  ................................ ................................ ...............................  6 
3   PROVISIONS ON TRADE IN GOODS  ................................ ................................ .............  7 
3.1   Import duties and charges, and quantitative restrictions ................................ ...................  7 
3.1.1    General provisions  ................................ ................................ ................................ .... 7 
3.1.2    Liberalization of trade and tariff lines  ................................ ................................ ..........  8 
3.1.3    Liberalization schedule  ................................ ................................ ..............................  8 
3.1.3.1    Canada  ................................ ................................ ................................ .................  9 
3.1.3.2    Ukraine  ................................ ................................ ................................ ................ 11 
3.1.4    Tariff rate quotas  ................................ ................................ ................................ .....13 
3.2   Rules of origin  ................................ ................................ ................................ ............ 13 
3.3   Export duties and charges, and quantitative restrictions  ................................ .................. 15 
3.4   Regulatory provisions on trade in goods  ................................ ................................ ........ 15 
3.4.1    Standards  ................................ ................................ ................................ ............... 15 
3.4.1.1    Sanitary and phytosanitary measures  ................................ ................................ ......15 
3.4.1.2    Technical barriers to trade  ................................ ................................ ..................... 15 
3.4.2    Safeguard mechanisms  ................................ ................................ ............................ 16 
3.4.2.1    Global safeguards  ................................ ................................ ................................ .16 
3.4.2.2    Bilateral safeguards  ................................ ................................ ............................... 16 
3.4.2.3    Special safeguards  ................................ ................................ ................................ 17 
3.4.2.4    Other Safeguard measures  ................................ ................................ ..................... 17 
3.4.3    Anti-dumping and countervailing measures  ................................ ................................ .17 
3.4.4    Subsidies and State -aid ................................ ................................ ............................ 17 
3.4.5    Customs -related procedures ................................ ................................ ...................... 17 
3.5   Sector -specific provisions on trade in goods  ................................ ................................ ...18 
3.5.1    Wine and spirits  ................................ ................................ ................................ .......18 
4   GENERAL PROVISIONS O F THE AGREEMENT  ................................ .............................  18 
4.1   Transparency  ................................ ................................ ................................ ............. 18 
4.2   Current payments and capital movements  ................................ ................................ .....18 
4.3   Exceptions  ................................ ................................ ................................ ................. 18 
4.3.1    General exceptions  ................................ ................................ ................................ ..18 
4.3.2    Security exceptions  ................................ ................................ ................................ ..18 
4.3.3    Taxation  ................................ ................................ ................................ ................. 19 
4.3.4    Cultural industries  ................................ ................................ ................................ ....19 
4.4   Accession and Withdrawal ................................ ................................ ............................ 19 
4.5   Institutional framework  ................................ ................................ ............................... 19 
4.6   Dispute settlement  ................................ ................................ ................................ .....20 WT/REG388/1  
 
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  4.7   Relationship with other agreements concluded by the Parties  ................................ ........... 21 
4.8   Government procurement  ................................ ................................ ............................ 22 
4.9   Intellectual property rights (IPRs)  ................................ ................................ ................. 23 
4.10   Other  ................................ ................................ ................................ ...................... 24 
4.10.1    Electronic commerce  ................................ ................................ .............................. 24 
4.10.2    Competition policy, monopolies and state enterprises  ................................ ................. 24 
4.10.3    Environment ................................ ................................ ................................ .......... 24 
4.10.4    Labour  ................................ ................................ ................................ .................. 25 
4.10.5    Trade -related cooperation  ................................ ................................ ....................... 26 
4.10.6    Review (Rendez -vous) Clause  ................................ ................................ .................. 27 
ANNEX 1  ................................ ................................ ................................ ........................  28 
 
  WT/REG388/1  
 
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Key Facts  
 
Parties to the Agreement:  Canada and Ukraine  
 
Date of Signature:    11 July 2016  
 
Date of  Entry into Force:  1 August  2017  
 
Date of Notification:   13 September 2017 
 
Full implementation:   1 January 2024  
 
 
1  TRADE ENVIRONMENT  
1.1.  The Free Trade Agreement between Canada and Ukraine , hereinafter referred to as "the 
Agreement" is one of Canada's 13, and Ukraine's  18, RTAs.1  
1.2.  In 2016 , Canada's GDP was estimated at US$ 1,529  billion, while that of Ukraine , was 
US$93 billion. Averaged over the period 2014 -2016, the Parties ' trade ( merchandise  and 
commercial services) to GDP ratio was 32.3 for Canada and 51.7 for Ukraine . Globally, Canada 
was the 7th largest exporter and the 6th largest importer, while Ukraine was the 35th largest 
exporter and the 37th largest importer in the world .2 
1.1  Merchandise trade  
1.3.  In 2016 , Canada's merchandise exports amounted to US$ 390 billion ( 2.45% of global 
exports) and imports amounted to US$ 417 billion ( 2.57% of global imports). In the same year, 
Ukraine's  merchandise exports amounted to US$ 36 billion ( 0.23 % of global exports) and imports 
amounted to US$ 39 billion ( 0.24% of global imports). For both Parties manufactured products 
represented the  main commodity group traded ( 51.1% and 77.1% respectively of Canada's 
exports and imports; and 48.9% and 56.3% respectively of Ukraine's  exports and imports) .3 
1.4.  Chart 1.1 summarizes the trends in global and bilateral trade of the Parties  for the period 
2000-2015.4 While Canada experienced a trade surplus  with the world during the beginning of the 
period 2000 -2008, followed by a trade deficit for most of the second part of the period, the 
evolution of Ukraine's global trade shows a surplus between 2000 and 2 004, followed by a trade 
deficit until 2014, then a surplus in 2015 . Trade  increased for both countries until the 2008 -2009 
financial and economic crises . It recovered immediately after but showed signs of stagnati on until 
2012 for Ukraine and then  contracted,  in US Dollar terms, in the last years of th is period , while 
Canada 's trade has remained on the upswing  since the end of the 2008 -2009 crises  showing 
however signs of breathlessness  at the end of the period . In relation to trade between the Part ies, 
UNSD Comtrade statistics show a trade deficit with Ukraine during the firs t part of the period (until 
2006). The trend was reversed  in the second part with a trade surplus, with the exception of 2012.  
Data for Ukraine during the same period  shows a similar, though not totally identical, situation .  
1.5.  Based on 2015  trade data5, Ukraine  was Canada's 69th source for imports6 (representing 
0.01% of Canada's total imports) and 44th destination for exports7 (representing 0.04 % of 
                                                
1 RTAs in goods and services counted as one and only agreements in force, notified to the WTO. Source 
WTO Database on RTAs; accessed in November 2017.  
2 Trade statistics exclude intra -EU trade. Source: WTO Trade Profiles (2016 data); accessed in 
November 20 17. 
3 Source: WTO Trade Profiles (2016 data); accessed in November 2017.  
4 For this section, as data from the source usually used for this section (UNSD, Comtrade database) was 
not available for both Parties for the year 2016, it has been decided to restri ct the considered period and use 
data only for the period 2000 -2015.  
5 Source: UNSD Comtrade database for both Parties. The national statistics of the Parties may slightly 
differ from the, also official, sources systematically used in the preparation of fa ctual presentations.  WT/REG388/1  
 
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  Canada's total exports). Canad a was Ukraine's  15th largest source of imports8 and 54th destination 
for exports9 (representing 0.55% and 0.33 % of Ukraine's  total imports and exports  respectively ). 
Chart 1.1 Canada -Ukraine : Merchandise bilateral trade and with the world, 2000 -2015  
 
Source:  UNSD Comtrade database  
 
1.6.  The commodity structure of trade between Canada and Ukraine , as well as of their global 
trade in the pe riod 2014 -2015, is shown in Chart 1.2 on the basis of Harmonized System ( HS) 
sections. Mineral products, chemical products, and live animals and animal products  accounted 
together for almost three quarters  of Ukraine's  imports from Canada (respectively corresponding 
to 34.4%, 18.3% and 18.2% of its imports from Canada). These three  categories of commodities 
were also Ukraine's  1st, 3rd and 11th largest import categories globally (respectively 29.7%, 12% 
and 2.1% of Ukraine's global imports ), and Canada's 1st, 5th and 12th largest e xports globally 
(respectively 26.4%, 6.4%, and 2.6% of Canada's exports to the world). The three  commodities 
most imported by Canada from Ukraine  were base metals, mineral products , and chemical 
products  (representing respectively 26.2%, 16.2%, and 13.6% of Canada's imports from its 
partner). The same commodities were also Ukraine's  1st, 3rd, and 6th largest exports to the world 
(respectively 27.2%, 10.7%, and 6.1%) and Canada's 3rd, 4th, and 5th largest global imports 
respectively  (representing  10.4%, 8.5%, and 6.7% of Canada's global imports).  
                                                                                                                                                  
6 The five top sources of imports for Canada were: the US (53.2%); China (12.2%); the EU(28) 
(11.4%); Mexico (5.8%); and Japan (2.8%).  
7 The five top destination of exports from Canada were: the US (76.7%); the EU(28) (7.2%); China 
(3.9%); Japan (1.9%); and Mexico (1.3%).  
8 The five top sources of imports for Ukraine were: the EU(28) (39.6%); Russia (20%); China (10.1%); 
Belarus (6.1%); and the US (4%).  
9 The five top destination of exports from Ukraine were: the EU(28) (32.7%); Russia (12.7%); Turkey 
(7.3%); China (6.4%); and Egypt (3.8%).  
0.00.20.40.60.81.01.21.41.61.82.0
020406080100120140160180200
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015B. Ukraine 2000 -2015
(US$ billions)
Imports from Canada (Right Axis)
Exports to Canada (Right Axis)
Total Imports
Total Exports
0.00.20.40.60.81.0
0100200300400500600
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015A. Canada 2000 -2015 
(US$ billions)
Imports from Ukraine (Right Axis)
Exports to Ukraine (Right Axis)
Total Imports
Total ExportsWT/REG388/1  
 
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  Chart 1.2 Canada and Ukraine : product composition of merchan dise trade, annual 
average (20 14-2015 ) 
Source:  UNSD, Comtrade database.  
 
2  CHARACTERISTIC ELEME NTS OF THE AGREEMENT  
2.1  Background Information  
2.1.  The Agreement was signed on 11 July 2016  and entered into force on 1 August 2017; it was 
notified  to the WTO  on 15 September 2017  under Article  XXIV:7(a) of GATT 1994 (see document 
WT/REG388/N/1/Rev.1 ). The text of the Agreement, together with its annexes, is available on the 
Parties' official websites:  
Canada : English: http://international.gc.ca/trade -commerce/trade -agreements -accords -
commerciaux/agr -acc/ukraine/text -texte/toc -tdm.aspx?lang=eng  
French:  http://international.gc.ca/trade -commerce/trade -agreements -accords -
commerciaux/agr -acc/ukraine/text -texte/toc -tdm.aspx?lang=fra  
 
Ukraine:  http://me.gov.ua/Documents/List?lang=uk -UA&id=ef6daba6 -e8ff-4c70-8743-
1d92adcbe086&tag=UgodaProVilnuTorgivliuMizhUkrainoiuTaKanadoiu  
34
181810533224Ukraine's imports from Canada(%)
30
16
12666433228Ukraine's Global Imports(%)
26
16
1076544433327Canada's Global Exports(%)27
16
111176642227Ukraine's Global Exports (%)
26
16
1487763228Canada's imports from Ukraine (%) 
24
18
1087543333327Canada's Global Imports (%)
Total: US$ 84 million Total: US$448 billion
Total: US$ 56 billion Total: US$ 447 billionTotal:  US$ 52 billion
Total:  US$ 214 million
Animal or vegetable 
fats and oilsVegetablesLive animals
ChemicalsMineralsPrepared foods
Wood pulpWood and articles of 
woodPlastics
Base metalsPrecious stonesTextiles
OpticalVehiclesMachinery
OtherMiscellaneousWT/REG388/1  
 
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  2.2.  The Agreement is composed of 19 Chapters. Box 2.1 below summarizes the structure of the 
Agreement. A number of Annexes, including the Parties' tariff elimination schedules a lso form part 
of the Agreement.  
Box 2.1 Structure of the Agreement  
Titles, Chapters  Title/description  
Preamble   
Chapter 1  General provisions and definitions  
Chapter 2  National treatment and market access  
Chapter 3  Rules of origin and origin procedures  
Chapter 4  Trade facilitation  
Chapter 5  Emergency action and trade remedies  
Chapter 6  Sanitary and phytosanitary measures  
Chapter 7  Technical barriers to trade  
Chapter 8  Electronic commerce  
Chapter 9  Competition policy, monopolies and state enterprises  
Chapter 10  Government procurement  
Chapter 11  Intellectual property  
Chapter 12  Environment  
Chapter 13  Labour  
Chapter 14  Transparency  
Chapter 15  Trade -related  cooperation  
Chapter 16  Administration of the Agreement  
Chapter 17  Dispute settlement  
Chapter 18  Exceptions  
Chapter 19  Final provisions  
Source:  WTO Secretariat based on the Agreement.  
2.3.  Under Article 1.1, the Parties establish a free trade area.  
3  PROVISIONS ON TRADE IN GOODS  
3.1.  Chapters 2 -7 of the Agreement specifically cover trade in goods, while other Chapters contain 
horizontal provisions that are also applicable to trade in goods.  
3.2.  A Committee on Trade in Goods and Rules of Origin is established t o address any matter 
arising under Chapter 3 (rules of origin); 4 (trade facilitation) or 5 (emergency action) 
(Article  2.13).  
3.3.  A Sub -Committee on Agriculture is also established to provide a forum for the Parties to 
discuss issues resulting from the imple mentation of the Agreement for agricultural goods 
(Paragraph 4 of Article 2.13).  
3.1  Import duties and charges, and quantitative restrictions  
3.1.1   General provisions  
3.4.  The Parties agree to apply nat ional treatment to each other's  imports in accordance with 
Article II I of GATT 1994 and its interpretative notes, which are incorporated into and made part of 
the Agreement, mutatis mutandis (Article 2.3 ).  WT/REG388/1  
 
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  3.5.  Moreover, n either Party shall adopt or maintain any prohibition or restriction on the import of 
any good from the othe r Party, except as provided in the Agreement or in accordance with 
Article  XI of GATT  1994, which is, together with its interpretative notes, also incorporated into and 
made part of the Agreement mutatis mutandis (Article 2.5 ). This, however, does not appl y to a 
number of measures maintained by Canada and listed in Annex 2 -A.10 These  exceptions to the 
prohibition of import restrictions include measures on certain imports by Canada (related to 
products classified under HS 9897.00.00, 9898.00.00 and 9899.00.00), as well as Canadian excise 
duties on absolute alcohol. The Agreement also confirms that import price requirements, except as 
permitted in enforcement of countervailing and antidumping order s and undertakings, are 
prohibited.  Discussion between the Parties shall take place with respect to imports from a third -
Party when this may  imply undue interference with or distortion of pricing, marketing or 
distribution arrangement that a Party may have with the other Party.  
3.6.  The Parties furthermore agree not to adopt or maintain a customs user fee or other similar 
charge in connection with i mportation of a good of the other Party except in accordance with 
Article VIII of the GATT 1994, which is incorporated into and made part of the Agreement 
(Article  2.6). 
3.1.2   Liberalization of trade and tariff lines  
3.7.  Neither Party shall increase any existing cus toms duty, or adopt any new customs duty11, on 
an originating good. Unless otherwise provided for in the Agreement, each Party shall 
progressively eliminate its customs duties on originating goods in accordance with its Schedule, 
contained in Annex 2 -B to the Agreement (Art icle 2.4 ).  
3.8.  On request from a Party, discussion  shall take place between the Parties with respect to  
accelerating the elimination of customs du ties (paragraph 4 of Article 2.4 ). 
3.1.3   Liberalization schedule  
3.9.  Annex 2 -B to the Agreement identifies  the eleven staging categories applicable in relation to 
the Parties' Schedules that are attached to it. The Parties shall therefore eliminate all customs 
duties on originating goods classified in Chapters 1 through 97 of the Harmonized System (HS) 
importe d from the other Party as provided for in the eleven staging categories as follows : 
 Customs  duties for goods in category "0 " were eliminated on the date of entry into force 
of the Agreement;  
 
 Category "1 " foresees the elimination of customs duties in two equal annual stages from 
the entry into force of the Agreement. Duty -free treatment shall be granted from 
1 January 2018 onward;  
 
 Category "3 " foresees the elimination of customs duties in four equal annual stages from 
the entry into force of the Agreement . Duty -free treatment shall be granted from 
1 January 2020 onward;  
 
 Category "5 " foresees the elimination of customs duties in six equal annual stages from 
the entry into force of the Agreement. Duty -free treatment shall be granted from 
1 January 2022 onward;  
 
                                                
10 Annex 2 -A also applies in connection with the above -mentioned commitment to apply national 
treatment.  
11 A Party may , however : (i) modify a tariff outside the Agreement on a good for which no tariff 
preference is claimed under the Agreement; (ii) increase a customs duty to the level established in its Schedule 
to Annex 2 -B to the Agreement following a unilateral reduction; (iii) maintain or increase a customs duty as 
authorized by the Agreement, the W TO dispute settlement or any agreement under the WTO agreement; or 
(iv) create a new tariff line more specific than the subheading level, provided that the Party does not impose 
customs duties on a good classified under that new tariff line greater than th e rate of customs duty applicable 
to the good under the Party's Schedule to Annex 2 -B before the new tariff line was created.  WT/REG388/1  
 
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   Category "7" foresees the elimination of customs duties in eight equal annual stages 
from the entry into force of the Agreement. Duty -free treatment shall be granted from 
1 January 2024 onward;  
 
 Category "5 A" foresees the reduction  of customs duties by 20% (one -fifth) of the base 
rate in six equal annual stages from the entr y into force of the Agreement. From  
1 January 2022 onward , the applicable rate of customs duty shall be 80% (four -fifths) of 
the base rate ;  
 
 Category "5B" fores ees the reduction of customs duties by 30% (three -tenth) of the 
base rate in six equal annual stages from the entry into force of the Agreement. From 
1 January 2022 onward, the applicable rate of customs duty shall be 70% 
(seven -tenths) of the base rate;  
 
 Category "5C" foresees the reduction of customs duties by 50% (one -half) of the base 
rate in six equal annual stages from the entry into force of the Agreement. From 
1 January 2022 onward, the applicable rate of customs duty shall be 50% (one -half) of 
the base rate;  
 
 Category "7A" foresees the reduction of customs duties by 20% (one -fifth) of the base 
rate in eight equal annual stages from the entry into force of the Agreement. From 
1 January 2024 onward, the applicable rate of customs duty shall be 80% ( four-fifths) of 
the base rate;  
 
 Category "7B" foresees the reduction of customs duties by 50% (one -half) of the base 
rate in eight equal annual stages from the entry into force of the Agreement. From 
1 January 2024 onward, the applicable rate of customs d uty shall be 50% (one -half) of 
the base rate; and  
 
 Customs duties for goods in category "E" are excluded from obligations regarding 
customs duties.   
 
3.10.   For Canada, the base rates of customs duty for determining the interim staged rate of 
customs duty for an item shall be the MFN rate of customs duty applied on 1 January 2010. For 
Ukraine, the base rate shall be the MFN rate of customs duty applied on 1 January 2011.  
3.1.3.1   Canada  
3.11.   Canada's applied tariff in  2017 consisted of 7,304  lines at t he HS eight -digit level 
(HS 2017). 96.47% of the tariff rates were ad valorem  and 258 lines had non -ad valorem  tariffs.12  
3.12.   Most of Canada's customs duties were eliminated at the entry into force of the Agreement 
(Category "0"). However , based on the tariff nomenclature of 2017,  Canada has 111 eight-digit 
tariff lines that fall in Category "E", and which are excluded from the customs duties elimination 
commitments. Sixteen (16 ) other tariff lines fall in Category "7" and are subject to the elimination 
of customs duties in eight equa l annual stages from the entry into force of the Agreement, with 
duty-free treatment to be granted from 1  January 2024 onward.  
3.13.   Table 3.1 shows tariff elimination commitments by Can ada under the Agreement. In 2017 , 
5,232  lines were duty free on an MFN basis , representing 71.6% of Canada's total tariff, 
corresponding to 86% of its imports from Ukraine  during 2014 -2016. Immediately following the 
entry into force of the Agreement, an additional 1,939  lines ( 26.5% of Canada's tariff) also 
became duty -free for imports from Ukraine . This resulted in 98.1% of Canada's tariff becoming 
duty free, corresponding to almost 100 % of Canada's total imports from Ukraine  (during the 
period 2014 -2016). Sixteen  tariff lines, whi ch correspond to a negligible share of Canada's total 
imports from Ukraine, will become duty free in 2024 , which corresponds to Canada's full 
implementation of its tariff elimination programme. 111 tariff lines (1.5% of the tariff) will remain 
dutiable onc e Canada's elimination commitments are fully implemented.  
                                                
12 Seventy -eight specific duties, 41 compound duties, 133 mixed duties, and 6 tariff lines with no MFN 
rate as they are country -specific TRQs.  WT/REG388/1  
 
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  Table 3.1 Canada:  
Tariff elimination commitments under the Agreement and corresponding average trade  
Duty phase -out period  Number of 
lines  % of total 
lines in 
Canada's 
tariff 
schedulea Value of Canada's 
imports from Ukraine 
(2014 -2016)  
US$ milliona % of Canada's total 
imports from  
Ukraine  
2014 -2016  
2017 (MFN)  5,232  71.6 60.9 86.0 
2017 1,939  26.5 9.9 14.0 
2024 16 0.2 0.0 0.0 
Remain dutiable  111 1.5 0.0 0.0 
Total  7,304b 100.0  70.9 100.0  
a Import and tariff coverage is from HS Chapters 1 -97. 
b 6 tariff lines in Chapter 17 (17019110, 17019910, 17029021, 17029061, 17029070 and 17029081) 
only relate to the Canada -Peru FTA and the Canada -Honduras FTA. Th ese tariff lines are only 
included for completeness of the tariff line count but are excluded in the Canada -Ukraine FTA.  
Note:  Tariff lines subject to in -quota rates at the MFN level are excluded in the computation.  
 Based on the HS  2017 nomenclature.  
Source:  WTO estimates based on data provided by Canada and WTO -IDB. 
 
3.14.   Table 3.2 shows Canada's tariff elimination, by HS section. The 111 lines excluded from 
tariff elimination once implementation is completed are found in HS Sections I (live animals), III  
(animal or vegetable fats and oil), IV (prepared food), and VI ( products of the chemical and allied 
industries ), with final average tariffs at between 218%  and 228.9% and with no "preferential " 
rates under the Agreement . Imports that are excluded can be f ound in HS Chapters 1, 2, 4, 15, 
16, 17, 18, 19, 21, 22, 23 and 35, as illustrat ed by Chart 3.1 below .  
Table 3.2 Canada: Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 
Average  
% No. of 
lines  Duty -free 
lines under 
the  
MFN 2017  Number of duty -free 
lines under the 
Agreement  Remain 
dutiable  Avg. Final 
Tariff  
(Dutiable)  2017  2024  
I 34.4 451 308 74  69 227.7  
II 3.1 443 331 112    
III 7.0 61 33 27  1 218.0  
IV 16.3 547 193 310  38 228.9  
V 0.4 158 150 8    
VI 1.2 935 800 132  3 270.0  
VII 1.7 262 199 63    
VIII 3.1 98 67 31    
IX 2.0 157 102 55    
X 0.0 141 141     
XI 4.9 1,198  832 366    
XII 9.7 100 34 66    
XIII 2.4 176 109 67    
XIV 1.7 60 45 15    
XV 1.3 669 534 135    
XVI 0.7 1,056  926 130    
XVII 5.3 258 108 134 16   
XVIII 1.6 290 207 83    
XIX 3.8 29 7 22    
XX 4.5 206 99 107    
XXI 1.4 9 7 2    
Total  5.4 7,304a 5,232  1,939  16 111 228.4  
a 6 tariff lines in Section IV (17019110, 17019910, 17029021, 17029061, 17029070 and 17029081) 
only relate to the Canada -Peru FTA and the Canada -Honduras FTA . These tariff lines are only 
included for completeness of the tariff line count but are excluded in the Canada -Ukraine FTA.  
Note:  Tariff lines subject to in -quota rates a t the MFN level are excluded in the computation; for the 
calculation of averages, specific rates are excluded and the ad valorem  parts of alternate rates are 
included . 
 Based on the HS  2017 nomenclature.  
Source:  WTO estimates based on data provided by Can ada. WT/REG388/1  
 
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  Chart 3.1 Canada: Average of dutiable rates, by HS Chapter  
 
Note:  Tariff lines subject to in -quota rates at the MFN level are excluded in the computation; for the 
calculation of averages, specific rates are excluded and the ad valorem  parts of alternate rates are 
included.   
 By "preferential" it is meant "rate applied to  products originating in the other RTA partner" . 
 Chart b ased on the HS 2017 nomenclature . 
*  HS Chapter 17 contains specific duties only . 
Source:  WTO estimates based on data provided by Canada.  
 
3.1.3.2   Ukraine  
3.15.   Ukraine's  applied tariff in 2017  consisted of 10,466  lines at the HS ten-digit level (HS  2012). 
99% of the tariff rates were ad valorem  and 10 5 lines had non -ad valorem  tariffs.13  
3.16.   All the above eleven staging Categories are applicable to Ukraine's commitments. Moreover, 
Ukraine additionally makes a TR Q commitment related to the imports of certain pork products 
originating in Canada (See Section 3.1.4 below).  
3.17.   Table 3.3 shows tariff elimination commitments by Ukraine  under the Agreement  consisted 
of 10 466 tariff lines .14 In 2017 , 3,970  lines were duty fr ee on an MFN basis, representing 37.9% 
of Ukraine's  total tariff, corresponding to 84.9% of its  imports from Canada during 2014 -2016. 
Immediately following the entry into force of the Agreement, an additional 3,628  lines ( 34.7% of 
Ukraine's  tariff) became duty-free for imports from Canada. This resulted in 72.6% of Ukraine's  
tariff becoming duty free, corresponding to 93% of Ukraine's  total imports fro m Canada (during 
the period 2014 -2016). Further tariff lines will become duty free in 20 18, 2020, 2022, and  2024 
which corresponds to Ukraine's  full implementation of its tariff elimination programme. As a 
consequence,  eight years after the entry into force of the Agreement,  in 2024,  99% of the 
Ukrainian  tariff will be du ty free for imports from Canada , corresp onding to 99.1% of Ukraine's  
total imports from Canada, leaving 101 tariff lines for which duties will continue to be levied ; these  
represent 1% of Ukraine's  tariff and correspond to 0.9 % of Ukraine's  total imports fro m Canada 
(during the period 2014 -2016).  
                                                
13 All specific duties.  
14 Tariff lines subject to in -quota are excluded from the counting and lines marked "ex" are treated as 
unique lines to avoid double counting.  
050100150200250300
01 02 04 15 16 *17 18 19 21 22 23 35Average Duty Rate
HS ChapterPreferential MFNWT/REG388/1  
 
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  Table 3.3 Ukraine:  
Tariff elimination commitments under the Agreement and corresponding average trade  
Duty phase -out 
period  Number of 
lines  % of total 
lines in 
Ukraine's 
tariff 
schedule  Value of Ukraine's 
imports from Canada  
(2014 -2016)  
US$ million  % of Ukraine's total 
imports from  
Canada  
2014 -2016  
2017 (MFN)  3,970  37.9 172.3  84.9 
2017 3,628  34.7 16.4 8.1 
2018 1 0.0 0.0 0.0 
2020 428 4.1 0.8 0.4 
2022 1,768  16.9 8.4 4.1 
2024 570 5.4 3.1 1.5 
Remain dutiable  101 1.0 1.8 0.9 
Total  10,466  100.0  202.9  100.0  
Note:  Tariff lines subject to in -quota rates are excluded in the computation . For the calculation of MFN 
averages, specific rates are excluded and the ad valorem  equivalents (AVEs) provided by the 
Ukrainian authorities are included . 
 Based on the HS  2012 nomenclature.  
Source:  WTO estimates based on data provided by Ukraini an authorities and the WTO -IDB. 
 
3.18.   Table 3.4  shows Ukraine's  tariff elimination, by HS section. The 101 lines excluded from 
tariff elimination once implementation is completed are found in HS Sections I (live animals); II 
(vegetables);  III (animal or vegetable fats and oil), and IV (prepared food) , with final avera ge 
tariffs at between 7.8% and 45.5 %, and with preferential rates at the same level as MFN rates  
only for products of Chapter 17, while for the other Chapters , the preferential tariff is lower than 
the MFN rate . Imports that are excluded  from the tariff elimination programme  and for some lines, 
for which lower preferential duties are applied , can be found in HS  Chapters 2, 4, 12, 13, 15 and 
17, as illustrated by Chart 3.2  below.  
Table 3.4 Ukraine: Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 
Average  
% No. of 
lines  Duty -free 
lines 
under the  
MFN 2017  Number of duty -free lines under the 
Agreement  Remain 
dutiable  Avg. Final 
Tariff  
(Dutiable)  2017  2018  2020  2022  2024  
I 6.8 974 329 158 1 63 45 298 80 7.8 
II 9.0 587 148 133  181 9 113 3 13.3 
III 9.2 149 23 109  3 6  8 9.4 
IV 10.3 901 96 603  75 4 113 10 45.5 
V 2.6 300 125 150  2 23    
VI 3.3 1,267  463 710   94    
VII 3.6 372 133 183  5 51    
VIII 6.0 136 15 4   117    
IX 0.9 212 177    35    
X 0.0 195 195        
XI 5.7 1,240  316 921  3     
XII 10.0 106     106    
XIII 7.0 272 28 1  9 234    
XIV 4.6 62 2 13  19 28    
XV 1.8 1,041  738 189  17 97    
XVI 2.7 1,640  791 365  48 436    
XVII 5.2 355 120 73   116 46   
XVIII 3.6 354 179 5  3 167    
XIX 6.2 66     66    
XX 5.7 230 85 11   134    
XXI 0.0 7 7        
Total  4.9 10,466  3,970  3,628  1 428 1,768  570 101 11.8 
Note:  Tariff lines subject to in -quota rates are excluded  in the computation; for the calculation of MFN 
averages, specific rates are excluded and the ad valorem  equivalents (AVEs) provided by the 
Ukrainian authorities are included.  
Based on the HS 2012 nomenclature  
Source:  WTO estimates based on data provided b y Ukrainian authorities.  WT/REG388/1  
 
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  Chart 3.2 Ukraine: Average of dutiable rates, by HS Chapter  
05101520253035404550
02 04 12 13 15 17Average Duty Rate
HS ChapterPreferential MFN
 
Note: Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of MFN 
averages, specific rates are excluded and the ad valorem  equivalent (AVEs) provided by the 
Ukrainian authorities are included.  
 Based on the HS 2012 nomencla ture. 
 By "preferential" it is meant "rate applied to products originating in the other RTA partner" . 
Source:  WTO estimates based on data provided by the Ukrainian authorities.  
 
3.1.4   Tariff rate quotas  
3.19.   Ukraine  commits to establish a  preferential tariff rate quota (TRQ) for certain pork 
products15 originating in Canada , as set out in paragraphs 2 and 3 of Annex 2 -B to the Agreement. 
Annex 2 -B identifies the annual aggregate quantity of the TRQ, which increase s progressively 
during the first eight ye ars from the date of entry into force of the Agreement. The aggregate 
quantity applicable in the eighth year is maintained for subsequent years .16 In-quota duties are set 
at 0%. Duties on originating goods entered in aggregate quantities in excess of these quantities 
shall be subject to a rate of customs duty not higher than the base rate of duty specified for that 
item in Ukraine's Schedule .17 Following the entry into force of the Agreement, should Ukraine 
accord to a third -party more favourable treatment on  the tariff items identified in Annex 2 -B, at 
the request of Canada , the Parties shall hold consultations to discuss providing to Canada the 
treatment accorded to the third -party. The manner in which Ukraine shall administer and 
implement the TRQ is govern ed by paragraph 3 of Annex 2 -B. 
3.2  Rules of origin  
3.20.   Chapter 3 contains provisions on rules of origin and origin procedures which  is 
supplemented by Annexes 3 -A (product -specific rules of origin ) and 3 -B; the latter  containing the 
text of the origin declaration , referred to in Article 3.15 (proof of origin) .  
                                                
15 The "TRQ Pork" commitments are applicable to Ukraine's imports of products originating in Canada 
and classified in the following HS lines: 0203.21.10.00; 0203.21.90.00; 0203.22.11.00; 0203.22.19.00; 
0203.22.90.00; 0203.29.11.00; 0203.29.13.00; 0203.29.15. 00; 0203.29.55.00; 0203.29.59.00; 
0203.29.90.00; 0206.41.00.00; 0206.49.00.00; and 0209.10.11.00.  
16 The aggregate quantity is set at 20,000 metric tonnes (net weight).  
17 10% for most products and 15% for one tariff line subject to the TRQ Pork commitments.  The current 
MFN applied rate for these tariff lines is equal to the base rate contained in Ukraine's schedule under the 
Agreement.  WT/REG388/1  
 
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  3.21.   A good qualifies as originating  when :  
a. it is wholly obtained as defined in Article 3.4 ; 
b. it is produced exclusively from originating materials, including those materials having 
undergone sufficient production and is then used in the subsequent production of 
another product (Article 3.5); or  
c. it has undergone sufficie nt production as per Article 3.5 and satisfies the product -
specific rules of origin set out in Annex 3 -A. 
3.22.   Annex 3 -A to the Agreement cont ains product specific rules of origin and outlines the 
conditions that need to be fulfilled for goods that are not wholly obtained to be considered to have 
undergone sufficient production  (Article 3.5) and qualify as originating. A change in tariff 
classif ication, at the HS Chapter, Heading, or Subheading levels , constitutes the main criteria used 
to determine origin for goods having un dergone sufficient production. For some products , a 
maximum percentage of added  value (between 20% and 65 %) is set for non -originating material, 
which may  be used as an alternative criterion to determine origin .18 Annex 3 -A also provides that  
specific manufacturing or processing operation s undertaken on certain goods  confers origin.19  
3.23.   A de minimis  or tolerance rule of 10% of th e transaction value or ex -works price of the good 
is applicable to non -originating materials used in the production of a good  (Article 3.6) . With 
respect to textiles and textile products (HS Chapters 50 through 60), the de minimis  rule of 10% 
applies to th e total weight of all materials used in the production of the concerned product. With 
respect to de minimis  for apparel and clothing accessories (HS Chapter 61 through 62), the 
Chapter Note of HS Chapters 61 or 62, whichever is applicable, shall apply. Wit h respect to made 
up textiles (HS Chapter 63)  the de minimis  of 10% applies to the total weight of all materials used 
in the production of  the component that made up the textile  product.   
3.24.   Chapter 3 a lso contains, under Articles 3.7  through 3.14, disciplines related to the unit of 
classification; packaging and packing materials and containers; accounting segregation of fungible 
materials or products; accessories, spare parts and tools; sets; neutral elements; transport 
through a thir d-party; and returned originating products . Transit and transhipment provisions are 
in Article 3. 13. 
3.25.   Cumulation of origin is governed by the provisions of Article 3.3  under which  a good that 
originates in a Party is considered originating in the other Part y when it is used as a material in the 
production of a product there . An exporter may also take into account production carried out on a 
non-originating material in the other Party for the purposes of determining the originating status of 
a good. Moreover,  the Agreement also contemplates  cumulation with third -parties under certain 
conditions  (diagonal accumulation)  subject to agreement by all Parties  on the applicable 
conditions . That is  to say,  when  each Party has a free trade agreement with the same third -party, 
a material of that third -party may be considered as originating  by the exporter when determining 
whether a product is originating under the Agreement (paragraph 3 and 4 of Article 3.3).  
3.26.   Section C of Chapter 3 governs the application of origin proc edures, in particular regarding 
the proof o f origin (Article 3.15 and Annex 3 -B); the obligations regarding exports and imports 
(Articles 3.16 and 3.18); the validity of the origin declaration (Article 3.17); and, (in Articles 3.19 
through 3.30), the proof of transport through a third -party; importation by instalments; 
exemptions from origin declarations; supporting documents; preservation of records; 
discrepancies and formal errors; cooperation; origin verification;  review and appeal of 
determinations of origin  and advance rulings ; penalties; confidentiality; and the issuance of 
advance rulings relating to origin.  
                                                
18 This is particularly the case for goods classified under HS Chapters 17 -18 (some sugar products); 
28-29, 31 -33, and 35 -39 (some chemical products, plastics and rubber); 50 -60, and 62 -63 (some textiles and 
textile products); 70 -71, 73, 76, and 82 -83 (some metals); and 84 -96 (machinery, vehicles, instruments and 
miscellaneous manufactured articles).  
19 This is the case particula rly for goods ranging from some transformed food products to chemical and 
textiles products.  WT/REG388/1  
 
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  3.27.   A Subcommittee on Origin Procedures  is established under Article 3.31 .  
3.3  Export duties and charges, and quantitative restrictions  
3.28.   Neither Party shall adopt or maintain any prohibition or restriction on the export of any good 
destined to the other Party, except as provided in the Agreement or in accordance with Article XI 
of GATT  1994, which is, together with  its interpretative notes, incorporated into and made part of 
the Agreement mutatis mutandis (Article 2.5 ). Exceptions to the prohibition on export restrictions, 
listed in Annex 2 -A to the Agreement, include measures in respect of exports of logs of all sp ecies 
and exports of unprocessed fish.20 The Agreement confirms that export price requirements are 
prohibited in circumstances in which any other for m of restriction is prohibited.  
3.29.   The Agreement clarifies that each Party may apply export duties, in accorda nce with their 
rights and obligations under the WTO (Article 2.9).  
3.4  Regulatory provisions on trade in goods  
3.4.1   Standards  
3.30.   Chapters 6 and 7  cover sanitary and phytosanitary measures (SPS) and technical barriers to 
trade (TBT).  
3.4.1.1   Sanitary and phytosanitary measures  
3.31.   Chapter 6 covers SPS measures.  Under Article 6.1, t he Parties affirm their  rights and 
obligations under the WTO Agreement on the Application o f Sanitary  and Phytosanitary Measures . 
Article  6.1 also provides that the Parties shall use the WTO dispute settl ement procedures for any 
formal disputes regarding SPS measure s, thereby  excluding the use of the dispute resolution 
mechanism established under the Agreement for any formal disputes regarding SPS measures .  
3.32.   Article 6.3 requires  each Party to designate a Contact Point to facilitate communication on 
SPS trade -related matters.  
3.33.   Article 6.4 includes several provisions relating to SPS issue prevention and resolution, 
including the requirement that the Parties work expeditiously to re solve any SPS trade -related 
matters.  
3.4.1.2   Technical barriers to trade  
3.34.   Chapter 7  covers TBT and applies to the preparation, adoption, and application of standards, 
technical regulations, and conformity assessment procedures of national governmental bodies that 
may affect the trade in goods between the Parties. According to Article 7.2, the WTO TBT 
Agreement, excluding Art icles 10 through 12 (information and assistance); 13 and some  of 
14 (institutions, consultations and dispute settlement);  and 15  (final provisio ns), is hereby 
incorporated into and made part of the Agreement, mutatis mutandis . 
3.35.   Chapter 7 contains provisions on joint cooperation on standards, technical regulations, 
accreditation, conformity assessment procedures, and metrology between the Parties (A rticle 7.4); 
the use of relevant international standards (Article 7.5) ; transparency (Article 7.7); and the 
establishment of Contact Points (Article 7.8) . 
3.36.   On conformity assessment,  the Parties agree to cooperate as well as  to recognize 
conformity assessmen t bodies located in the territory of the other Party under certain conditions.  
Each Party shall, inter alia , also consider a request to develop and implement the mutual 
recognition of conformity assessment bodies with respect to radio and terminal 
telecomm unications equipment. Moreover, according to Article 7.6, each Party shall accept the 
results of conformity assessment procedures conducted by conformity assessment bodies located 
in the other Party's territory, which have been recognized by the other Part y, under conditions no 
                                                
20 Pursuant to applicable provincial legislation.  WT/REG388/1  
 
- 16 - 
 
  less favourable than those applied to the acceptance of the results of conformity assessment 
procedures conducted by recognized conformity assessment bodies in its territory. The Part ies, 
furthermore, agree to exchange, no later than  upon the entry into force of the Agreement , 
information on their respective conditions for the recognition of conformity assessment bodies, 
including applicable accreditation requirements and procedures that a conformity assessment body 
must fulfil to app ly for recognition.  The Parties confirm that such exchange has taken place.   
3.4.2   Safeguard mechanisms  
3.37.   Section B of Chapter 5  refers to the use of bilatera l and global safeguard measures , using 
the term "emergency actions " within the Agreement , while Article 2.7 governs the imposition of 
measures for balance -of-payments purposes.  Article 2. 11 also refers to the special safeguard 
mechanism established under Article 5 of the WTO Agreement on agriculture.  
3.4.2.1   Global safeguards  
3.38.   Each Party retains its rights an d obligations under Article XIX of GATT 1994 and the WTO 
Agreement on Safeguards , which exclusively govern global safeguard actions, including the 
resolution of a disput e with respect to those matters , thus implicitly excluding the use of the 
dispute resol ution mechanism established under the Agreement for global safeguard -related 
matters.  Global safeguards shall not be adopted (or maintained) at the same time as a bilateral 
safeguard . 
3.4.2.2   Bilateral safeguards  
3.39.   Articles 5.3  through 5.7 allow for the imposition o f bilateral safeguard measures in certain 
circumstances and set out disciplines governing their use , including with respect to notification and 
discussions between the Parties, standards for emergency actions, and the administration of 
emergency action pro ceedings . During the transition period21, a Party may apply a bilateral 
safeguard measure. Such a measure may consist of either (i) a suspension of the further reduction 
of the customs duty on the good provide d for under the Agreement, or (ii) an increase i n the rate 
of customs duty on the good to a level not to exceed the lesser of the MFN applied rate of duty in 
effect at the time the safeguard measure is applied, and the base rate set out in each Party 's 
respective Schedule of Tariff Commitments in annex 2-B.22 In case of a customs duty applied to a 
good on a seasonal basis, the calculation shall be in relation to the corresponding  season.  Any 
bilateral safeguard measure shall be adopted no later than one year after the date the proceeding 
is instituted.  
3.40.   A Party shall not maintain an emergency action for a period that exceeds what is necessary 
to prevent or remedy serious injury and facilitate adjustment. A bilateral safeguard shall also not 
be maintained for a period exceeding three years, or beyond the exp iry of the transition period. 
Moreover, a bilateral safeguard shall not be applied against an originating good more than once.  
Trade liberalizing compensation shall be provided to the exporting Party by the Party taking a 
bilateral safeguard. This compensa tion shall take the form of concessions with substantially 
equivalent trade effects or equivalent to the value of the additional duties expected to result from 
the action. In case compensation  is not agreed between the Parties, the Party whose goods are 
subject to the action may take tariff action with trade effects substantially equivalent to the 
bilateral safeguard measure. Such tariff action shall be applied only for the minimum period 
necessary to achieve substantially equivalent effects and only  while emergency action is in effect.  
3.41.   Article 5.7 clarifies that a Party shall not request the establishment of a panel under the 
dispute settlement mechanism created under the Agreement (Article 17.7 in particular) regarding 
a proposed emergency action (safeguar d measure). A Party may, however, request the 
establishment of such a panel regarding an actual safeguard measure.  
                                                
21 Under Chapter 5 of the Agreement, "transition period" means the seven -year period beginning on the 
date of entry  into force of the Agreement, except where the tariff elimination for the good against which the 
action is taken occurs over a longer period of time, in which case the transition period is the period of the 
staged tariff elimination for that good.  
22 Annex 2-B, paragraph 5, notes that the base rates correspond to MFN applied rates on the following 
dates: for Canada, January 1, 2010; for Ukraine, 1 January 2011.  WT/REG388/1  
 
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  3.4.2.3   Special safeguards  
3.42.   With regards to safeguard measures on agricultural products, Article 2.1 1 prohibits the 
Parties from applying duties under Article 5 of the WTO Agreement on agriculture (special 
safeguard provision)  on goods of the other P arty that are subject to the tariff elimination 
programme under the Agreement . 
3.4.2.4   Other Safeguard measures  
3.43.   While the Parties agree that they shall endeavour to avoid imposing restrictive measures for 
balance -of-payments purposes, such measures may be applied in serious balance -of-payments  
(BoP)  difficulties, or under imminent threat thereof, and in accordance with  the conditions 
established under the GATT 1994, the WTO Understanding on the B oP provisions of the GATT 1994 
and the WTO Declaration on Trade Measures Taken for B oP Purposes. The Agreement provides for 
notification and consultation and that such a measure  shall not impair the relative benefits 
accorded to the other Party und er the Agreement (Article 2.7).  
3.4.3   Anti-dumping and countervailing measures  
3.44.   The WTO Agreement exclusively governs the Parties' rights and obligations regarding the 
applications of anti -dumping and countervailing measures, including the settlement of any disputes 
about these matters , thus implicitly excluding the use of the dispute resolution mechanism 
established under the Agreement for antidumping and countervailing matters . (Article 1.2).  This is 
confirmed in Article 5.8. A transparency provision with respect to the imposition of provisional 
anti-dumping or countervailing measure is nevertheless contained in the Agreement (Article 5.9).  
3.4.4   Subsidies and State -aid 
3.45.   The WTO Agreement exclusively  governs the Parties' rights and obligations regarding 
subsidies, including the settlement of any disputes about these matters , thus implicitly excluding 
the use of the dispute resolution mechanism established under the Agreement for subsidies and 
State -aid matters  (Article 1.2).   
3.46.   The Agreement moreover  provides that a Party shall not adopt or maintain an export 
subsidy on an agricultural good that is exported, or incorporated in a product that is exported, to 
the territory of the other Party after the othe r Party has, immediately or after the transition period, 
fully eliminated the tariff on that agricultural good in accordance with Annex 2 -B (Staging 
categories applicable with respect to the tariff elimination programme).  
3.4.5   Customs -related procedures  
3.47.   Chapter  4 addresses trade facilitation . Articles 4. 1 through 4.13  contain provisions on 
transparency; procedures for the release of goods to be simplified; fees and charges to be 
published; risk management to form a base for examination, release, and post -entry v erification 
procedures; automation to be used to expedite the Parties' domestic trade -related procedures; 
advance rulings for tariff classification; review and appeal of administrative actions; penalties to be 
imposed for a breach of customs legislation or  procedures; confidentiality to be maintained  with 
respect to certain information; and cooperation in customs -related and trade facilitation matters . 
3.48.   The WTO Agreement on Customs Valuation governs the customs valuation rules applied by 
the Parties to thei r reciprocal trade (Article 4.4 ). 
3.49.   The Parties also agree to identify and submit for consideration by the Joint Commission new 
measures aimed at facilitating trade between them (Article 4.13). They moreover  agree, in the 
context of a future work programme, t o regularly review international initiatives on trade 
facilitation, including the Compendium of Trade Facilitation Recommendations, developed by the 
UNCTAD and the UN/ECE, to identify areas in which further joint action would facilitate trade 
between the P arties and promote shared multilateral objectives.  WT/REG388/1  
 
- 18 - 
 
  3.5  Sector -specific provisions on trade in goods  
3.5.1   Wine and spirits  
3.50.   A specific provision under Chapter 11 (Intellectual property) concerns the protection in each 
of the Parties ' geographical indications (GIs) of  wines and spirits originating in the territory of the 
other Party .23  
3.51.   With respect to certain types of wine , according to Annex 7 -A, in the context of the 
provisions on TBT, a Party shall permit wine to be labelled as "Icewine", "ice wine", "ice -wine" or a  
similar variation of these terms, only if the wine is made exclusively from grapes naturally frozen 
on the vine.  
3.52.   With respect to spirits, a  Party may not adopt or maintain a measure requiring that distilled 
spirits imported from the territory of the other  Party for bottling be blended with distilled spirits of 
the Party (Article 2.12).  
4  GENERAL PROVISIONS O F THE AGREEMENT  
4.1  Transparency  
4.1.  Chapter 14 contains general transparency disciplines. While Section A of C hapter 14 
addresses publication,  notification , and administration of laws, including administrative 
proceedings, review and appeal, and cooperation on promoting increased transparency 
(Articles  14.1 through 14.6), Section B of Chapter 14 covers anti -corruption, with statements of 
principles (Article 1 4.8), disciplines on adopting or maintaining  anti-corruption related  legislative o r 
other measures (Article 14.9),  and an agreement by the Parties to work together to advance 
efforts in regional and multilateral fora to prevent and combat bribery and corru ption in 
international trade and investment (Article 14.10).  Further to Chap ter 14 , the Agreement also 
establishes specific transparency requirements in a number of other Chapters.  
4.2  Current payments and capital movements  
4.2.  The Agreement does not contain specific provisions on current payments and capital 
movements.  
4.3  Exceptions  
4.3.  General and security exceptions are contained in Articles 18.2 and 18.3. Moreover, 
Article  18.4 states that the Agreement does not apply to taxation measures, while Articles 18.6 
and 18.7 refer, respectively, to cultural industries and to the treatment of WTO Waivers .24 
Article  18.5 also clarifies that the Agreement does not require a Party to furnish or allow access to 
all information.   
4.3.1   General exceptions  
4.4.  For the purposes of  Chapters 2 (national treatment and market access); 3 (rules of origin and 
origin procedures); 4 (trade facilitation); 5 ( safeguard measures); 6 (SPS measures); 7 (TBT); 
and 8 (electronic commerce), Article XX of GATT 1994 is incorporated into and made part of the 
Agreement, mutatis mutandis  (Article 18.2).  
4.3.2   Security exceptions  
4.5.  Article 18.3 replicates the provisions in Article XXI of GATT 1994.  
                                                
23 See Section 4.9 below on intellectual property for more details on GIs.  
24 If a right or obligati on in the Agreement duplicates a right or obligation under the WTO agreement, a 
measure adopted by a Party in conformity with a waiver decision adopted by the WTO pursuant to Article IX of 
the WTO agreement is deemed to be also in conformity with this Agre ement (Article 18.7).  WT/REG388/1  
 
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  4.3.3   Taxation  
4.6.  As a principle, the Agreement does not  apply to taxation measures. However, Article  18.4 
lists provisions for whic h that principle is not applicable and/or its applicability is limited. Some 
disciplines are also contained in Article 18.4 (paragraph 5) to help to address whether a measure 
of a Party is a taxation measure in the case of a dispute.  
4.3.4   Cultural industries  
4.7.  Article 18.6 states that the Agreement does not apply to measures adopted or maintained by 
either Party with respect to a person engaged in a cultural industry25 except as speci fically 
provided in Articles 2.4  (tariff elimination  on imports ). 
4.4  Accession and Withdrawal  
4.8.  The Agreement provides that a third -party may accede to it upon terms and conditions to be 
set out in an agreement on accession between the Parties and the third -party (Article 19.7).  
Termination is governed by Article 19.6 under which the Agree ment terminates six months 
following written notice by either Party.  
4.5  Institutional framework  
4.9.  A Joint Commission is established, inter alia , to supervise the implementatio n of the 
Agreement (Article 16.1 ). Committees, subcommittees, working groups, or other  bodies may be 
established by the Joint Commission. Annex 16-A to the Agreement lists the committees, 
subcommittees, working groups and other bodies which are established under the Agreement. All 
decisions shall be made by mutual consent of the Parties.  
4.10.   Each Party shall designate an Agreement Coordinator  (Article 16.2)  to, inter alia , monitor  
the work of all subsidiary bodies; recommend the establishment of other bodies; follow up on any 
decisions taken by the Commission, as appropriate; receive notificatio ns and information provided 
under the Agreement; and consider other matters that may affect the operation of the Agreement.  
4.11.   The institutional framework established by the Ag reement is summarized by Chart 4 .1 
below.  
                                                
25 Under the Agreement, "person engaged in a cultural industry" means a person engaged in any of the 
following activities: (a) the publication, distribution or sale of books, magazines, periodicals or newspapers in 
print or machine -readable form, but not including the sole activity of printing or typesetting any of the 
foregoing; (b) the production, distribution, sale or exhibition of film or video recordings; (c) the production, 
distribution, sale or exhibition of audio or video music recordings; (d) the publication, distribution or sale of 
music in print or machine -readable form; or radio -communications in which the transmission re intended for 
direct reception by the general public, and all radio, television and cable broadcasting und ertakings and all 
satellite programing and broadcast network services.  WT/REG388/1  
 
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  Chart 4.1 Institutional Framework  
 
 
4.6  Dispute settlement  
4.12.   Chapter 17 governs dispute settlement26 for matters covered under the Agreement,  with the 
exception of Chapter 6  (SPS); 11 (intellectual property); 12 (environment); 13 (labour); 15 (trade 
related coop eration); and Article 9.2 of Chapter 9 (competition policy, monopolies and State 
enterprises), and as otherwise provided under the Agreement . Moreover, Article 1.2 states that  
the WTO a greement exclusively governs the Parties'  rights and obligations regard ing the 
settlement of any disputes about subsidies and the applications of anti -dumping and countervailing 
measures.  Furthermore, Annex 17 -B (dispute settlement for anti -corruption) applies to a dispute 
arising under section B of Chapter 14 (transparency) .27  
4.13.   The Agreement provides for a choice of the dispute settlement forum. However, when a 
dispute has been initiated, either under the WTO or under the Agreement, the same measure may 
not be invoked under the other forum (Article 17.4).  
4.14.   The Parties endeavou r to agree on the interpretation and application of the Agreement 
through cooperation  (Article 17.2)  and consultations (Article 17.5) to arrive at a mutually 
satisfactory resolution of a matter that may affect the operation of the Agreement. Alternative 
methods of dispute resolution, such as good offices, conciliation, or mediation are governed by 
Article 17.6.  
4.15.   If the Parties fail to resolve a matter, it may be referred to a dispute settlement panel. 
Under Articles 17.7 through 17.16 , the Agreement establi shes the disciplines and procedural steps, 
mainly modelled on the WTO dispute settlement modalities, that are applicable to the 
establishment of panels; panel selection; qualifications of panellists; rules of procedures28; panel 
reports; implementation of the Final Report; non -implementation and suspension of benefits; 
review of compliance and suspension of benefits; and referrals of matters from judicial or 
administrative proceedings . Chart 4 .2 below summarizes the main steps of the dispute settlement 
mech anism established by the Agreement.  
                                                
26 Annex 17 -A clarifies the applicability of the concept of nullification and impairment in relation to 
certain Chapters of the Agreement.  
27 Annex 17 -B covers areas such as: consultation s, review panel, panel selection, panel selection 
procedures, and review panel process.  
28 Annex 17 -C covers rules of procedure and addresses areas such as application, definitions; written 
submissions and other documents; burden of proof; written submission by a non -governmental person; role of 
experts; operation of panels; hearings; Ex Parte contracts; and remuneration and payment of expenses.  Joint Commission  
(Art. 16.1)  
Committee on Trade in Goods and Rules of Origin (Art. 2.13)  
Subcommittee on Agriculture (Art. 2.13.4)  
Subcommittee on Origin Procedure (Art. 3.31)  
Committee on Intellectual Property (Art. 11.12)  
Labour Ministeri al Council (Art. 13.9)  
Committee on the Environment (Art. 12.16)  
Source:  WTO Secretariat based on the Agreement.  
 WT/REG388/1  
 
- 21 - 
 
  Chart 4.2 Specific (State -to-State ) Dispute Settlement Mechanism established by the 
Agreement  
 
 
4.16.   For the settlement of international commercial disputes between private parties29 in the free 
trade area, each Party shall, to the extent possible, encourage and facilitate the use of arbitration 
and other means of alternative dispute resolution (Article 17.17 ). Each Party shall provide 
appropriate procedures to ensure observance of ag reements to arbitrate and for the recognition 
and enforcement of arbitral awards in such disputes.  
4.7  Relationship with other agreements concluded by the Parties  
4.17.   Article 1.1 states that the Agreement is consistent with Article XXIV of GATT 1994. The 
Parties a lso affirm their existing rights and obligations with respe ct to each other under the WTO 
Agreement and other agreements to which both Parties are party (Article  1.2). In the event of any 
inconsistency between these agreements and the Agreement, the lat ter prevails, except as 
otherwise provided in it. The Parties nev ertheless clarify that the WTO Agreement exclusively 
governs their rights and obligations regarding subsidies and the application of anti -dumping and 
countervailing measures, including the settl ement of any disputes about these matters.  
4.18.   Nevertheless, in relation to some multilateral environmental agreements30, Article 1.3 states 
that the obligation in the above -mentioned agreements prevails provided that a measure taken by 
a Party is necessary to comply with that obligation, and is not applied in a manner that would 
                                                
29 Under Article 17.16, a Party may not provide a right of action under its domestic law against the other  
Party on the ground that an act or omission of that Party is inconsistent with the Agreement.  
30 The Convention on International Trade in Endangered Species of Wild Fauna and Flora; the Montreal 
Protocol on Substances that Deplete the Ozone Layer; the Base l Convention on the Control of Transboundary 
Movements of Hazardous Wastes and their Disposal; the Rotterdam Convention on the Prior Informed Consent 
Procedure for Certain Hazardous Chemicals and Pesticides in International Trade; and the Stockholm 
Convent ion on Persistent Organic Pollutants.  Source:  WTO Secretariat based on the Agreement.  
 Consultations (Art . 17.5)  
Establishment and 
composition of a Panel  
(Art. 17.7 -17.9)  
Proceedings (Art. 17.10  
 and Annex 17 -C) 
Panel Report  
(Art. 17.11)  
(Temporary) suspension of 
benefits by complaining Party 
(Art. 17.13)  Compliance review  
(Art. 17.14)  Good Offices, Conciliation; 
Mediation (Art. 17.6)  
Compliance review  
(Art. 17.14)  
 Non-implementation  
(Art. 17.13)  
Compensation agreed 
between the Parties  
(Art. 17.12)  Implementation of the Final 
Report  
(Art. 17.12)  
 WT/REG388/1  
 
- 22 - 
 
  constitute, where the same conditions prevail, arbitrary or unjustifiable discrimination or a 
disguised restriction on international trade.  
4.19.   Table 4 .1 below shows the Parties' RTAs, noti fied and non -notified, other than the 
Agreement.  
Table 4.1 Canada - Ukraine: Participation in other RTAs (notified and non -notified in 
force), as of 30 November 2017  
RTA Name  Date of 
entry into 
force  Coverage  GATT/WTO Notification  
Year WTO Provision  
CANADA  
European Union - Canada  21-Sept-17 Goods & Services  2017 GATT Art. XXIV & GATS Art. V  
Canada - Republic of Korea  01-Jan-15 Goods & Services  2015 GATT Art. XXIV & GATS Art. V  
Canada - Honduras  01-Oct-14 Goods & Services  2015 GATT Art. XXIV & GATS Art. V  
Canada - Panama  01-Apr-13 Goods & Services  2013 GATT Art. XXIV & GATS Art. V  
Canada - Jordan  01-Oct-12 Goods  2013 GATT Art. XXIV & GATS Art. V  
Canada - Colombia  15-Aug-11 Goods & Services  2011 GATT Art. XXIV & GATS Art. V  
Canada - Peru 01-Aug-09 Goods & Services  2009 GATT Art. XXIV & GATS Art. V  
EFTA - Canada  01-Jul-09 Goods  2009 GATT Art. XXIV  
Canada - Costa Rica  01-Nov-02 Goods  2003 GATT Art. XXIV  
Canada - Chile 05-Jul-97 Goods & Services  1997 GATT Art. XXIV & GATS Art. V  
Canada - Israel  01-Jan-97 Goods  1997 GATT Art. XXIV  
North American Free Trade 
Agreement (NAFTA)  01-Jan-94 Goods & Services  1993 
1995 GATT Art. XXIV  
GATS Art. V  
UKRAINE  
European Union - Ukraine  23-Apr-14 Goods & Services  2014 GATT Art. XXIV & GATS Art. V  
Ukraine - Montenegro  01-Jan-13 Goods & Services  2013 GATT Art. XXIV & GATS Art. V  
Treaty on a Free Trade Area 
between members of the 
Commonwealth of 
Independent States (CIS) * 20-Sep-12 Goods  2013 GATT Art. XXIV  
EFTA - Ukraine  01-Jun-12 Goods & Services  2012 GATT Art. XXIV & GATS Art. V  
Ukraine - Belarus * 11-Nov-06 Goods  2008 GATT Art. XXIV  
Ukraine - Republic of 
Moldova * 19-May-05 Goods  2008 GATT Art. XXIV  
Common Economic Zone 
(CEZ) * 20-May-04 Goods  2008 GATT  Art. XXIV  
GUAM  10-Dec-03 Goods & Services  2017 GATT Art. XXIV & GATS Art. V  
Ukraine - Tajikistan * 11-Jul-02 Goods  2008 GATT Art. XXIV  
Ukraine - The former 
Yugoslav Republic of 
Macedonia  05-Jul-01 Goods  2008 GATT Art. XXIV  
Ukraine - Kazakhstan * 19-Oct-98 Goods  2008 GATT Art. XXIV  
Kyrgyz Republic - Ukraine * 19-Jan-98 Goods  1999 GATT Art. XXIV  
Armenia - Ukraine * 18-Dec-96 Goods  2004 GATT Art. XXIV  
Ukraine - Azerbaijan  02-Sep-96 Goods  2008 GATT Art. XXIV  
Georgia - Ukraine  04-Jun-96 Goods  2001 GATT Art. XXIV  
Ukraine - Uzbekistan  01-Jan-96 Goods  2008 GATT Art. XXIV  
Ukraine -Turkmenistan  04-Nov-95 Goods  2008 GATT Art. XXIV  
*  Due account should be taken to Article 23.2 of the CIS Agreement, which impacts on  bilateral 
international treaties existing between CIS partners. Consequently, some RTAs listed could be 
considered as "due inactive" or "put on hold".   
Source:  WTO Secretariat.  
 
4.8  Government procurement  
4.20.   Chapter 10  contains rules applicable to government procurement and cover both goods and 
services (inclu ding construction services). It makes general principles, such as non -discrimination, WT/REG388/1  
 
- 23 - 
 
  applicable to the covered procurements .31 Under the Agreement, the Parties' co mmitment s on 
government p rocurement replicate, to a large extent, those made under the revised Government 
Procurement Agreement ( revised GPA), to which both Parties are party .32 For both Parties, the 
thresholds and, to a large extent the coverage of the com mitments, in terms of central 
government entities, other entities, goods, services, and construction services is similar under the 
Agreement to those  under the revised GPA. Notably however, under the Agreement, neither  Party 
makes commitments on sub-centra l government entities. Annexes 10 -7 through 10 -9 to the 
Agreement provide, for both Parties, some disciplines on, respectively, a threshold adjustment 
formula; extended transparency commitments; and means of publication.  
4.21.   With respect to the relationship be tween Chapter 10 and the revised GPA, Article 10.3 
provides that at any time during which both Parties are also a party to the Annex to the Protocol 
Amending the Agreement on Government Procurement (GPA), the operation of Articles 10.1, 10.2 
and 10.4 to 10 .18 is suspended and the GPA, with exception of Articles V, XVI(4) to XVI(6), XIX, 
XX, XXI, XXII, is hereby incorporated into and made part of the Agreement, as applicable and with 
such changes as may be necessary as long as the Parties are also parties to  the GPA. Any 
amendments to the provisions of the GPA that are incorporated into Chapter 10 are incorporated 
into the Agreement, except as agreed by the Parties.  
4.22.   Chapter 10 contains disciplines on  a number of technical aspects related to the operation of 
government procurements .33 It also contains rules on transparency of procurement information; as 
well as disclosure of information. Domestic review procedures are also governed by Chapter 10. 
With respect to the coverage of Chapter 10, disciplines concernin g modifications and rectification s 
are contained in Article 10.19 . Security and general exceptions are also applicable to the Parties' 
commitments with respect to government procurement (Article 10.4).  
4.9  Intellectual property rights  (IPRs)  
4.23.   Chapter 1 1 covers intellectual property rights. The Parties reaffirm their rights and 
obligations under the TRIPS Agreement and other intellectual property agreements to which they 
are a party. They affirm the right to fully avail themselves of the flexibilities established  in the 
TRIPS Agreement, including those related to the protection of public health and in particular the 
promotion of access to medicines for all.  
4.24.   Article 11.3 concerns the protection in each of the Parties of geographical indications (GIs) 
of wines and s pirits originating in the territory of the other Party. Annex I attached to Chapter 11 
contains lists of GIs originating and protected in each Party .34 The terms listed in Part A of that 
Annex are eligible for registration as protected GIs in Canada , while the terms listed in Part B are 
eligible for registration as protected GIs in Ukraine . In order to secure protection of the listed GIs, 
registration is mandatory. The protection by each Party of these GIs shall be in accordance with 
Articles 22 through 24 o f the TRIPS a greement and subject to the exceptions provid ed in Article 24 
of the TRIPS a greement.  The Agreement nevertheless confirms that each Party may adopt or 
maintain procedures that provide for the cancellation of the protection afforded to a GI wit hin its 
territory. In such a case a notification is required.  
4.25.   Chapter 11 contains specific provisions on various aspects of enforcement of IPRs 
(Articles  11.4 through 11.9), including with respect to special requirements related to border 
                                                
31 Other general principles relate to the use of electronic means, the conduct of procurement, the 
applicable rules of origin, offsets, as well as the non -applicability of general principles to measures not specific 
to procurement.  
32 Canada has been a party to the 1994 GPA since 1 January 1996, and is a Party to the revised GPA 
since 6  April 2014. Ukraine joined both of these agreements on 18 May 2016.  
33 This is in particular the case for provisions on information on the  procurement system; notices of 
intended procurement, summary notices, and notices of planned procurements; conditions for participation in a 
procurement; qualification of suppliers; technical specifications, tender documentation, and modifications of 
the criteria or requirements set out in the notice; time -periods for suppliers to prepare and submit requests for 
participation and responsive tenders, including setting deadlines for tendering; negotiation between a Party’s 
procuring entities and suppliers; l imited tendering; electronic auctions; and treatment of tenders and awarding 
of contracts.  
34 The Joint Commission may amend Annex I by removing a GI of a wine or spirit which has ceased to 
be protected or has fallen into disuse.  WT/REG388/1  
 
- 24 - 
 
  measures, or cri minal procedures and penalties, in particular in connection with unauthorised 
copying of a cinematographic work from a performance in a movie theatre (camcording) or with 
copyright infringement on the Internet or on other digital networks. Cooperation on e nforcement is 
also covered while other areas of cooperation are also foreseen under Article 11.10.  
4.26.   Transparency is covered by Article 11.13, with some reservations with respect to disclosure 
of information under Article 11.14.  
4.27.   While a Party shall not hav e recourse to dispute settlement under Chapter 17 for any 
IPR-related matters, consultations between the Parties regarding any actual or proposed measure, 
or any other matter which a Party considers might negatively affect intellectual property interests, 
is governed by Article 11.15.  
4.28.   A Committee on Intellectual Property is established in Article 11.12  to discuss topics 
relevant to the protection and enforcement of IPRs, to provide a forum for consultations (as 
foreseen under Article 11.15 ), to oversee the implementat ion of the Parties' cooperation, and to 
make any recommendation to the Joint Committee to amend Annex I (GIs) to Chapter 11.  
4.10  Other  
4.10.1   Electronic commerce  
4.29.   The Parties confirm, in Chapter 8  on electronic commerce, that they shall not apply a 
customs duty, fee or charge on a product delivered electronically. This does not preclude a Party 
from imposing internal taxes or other internal charges on products delivered electronically, 
provided that such taxes or charges are imposed in a manner consistent wi th the Agreement.  
4.30.   In the event of an inconsistency between Chapter 8 and another Chapter of the Agreement, 
the other Chapter prevails to the extent of the inconsistency.  
4.10.2   Competition policy, monopolies and state enterprises  
4.31.   Chapter 9  contains disciplines o n competition policy, monopolies and State enterprises.   
4.32.   On compet ition policy, under Article 9.2 , the Parties agree to adopt or maintain measures to 
proscribe anti -competitive business conduct and take appropriate action with respect to that 
conduct  consistent with the principles of transparency, non -discrimination and procedural fairness . 
They shall maintain their independence in developing and enforcing competition laws.  This article 
is not subject to any form of dispute settlement under the Agreeme nt. 
4.33.   On monopolies, under Article 9.3 , the Parties agree that the Agreement does not prevent a 
Party from maintaining or designating a monopoly.  They nevertheless agree to fulfil a number of 
conditions when a privately owned monopoly is designated or a gove rnment monopoly  is 
maintained or designated by a Party . Prior notification of such designation, shall, wherever 
possible, be made to the other Party.  
4.34.   On state enterprises35, under Article 9.4 , the Parties agree that the Agreement is not to be 
construed to prevent a Party from maintaining or establishing a state enterprise. Each Party shall 
ensure that a state enterprise that it maintains or establishes acts in a manner that is not 
inconsistent with the Party's obligations under the Agreement when exercising  delegated 
governmental authority. Non -discriminatory treatment shall be accorded in the sale of its goods or 
services to covered investments.  
4.10.3   Environment  
4.35.   The Agreement contains, in Chapter 12,  disciplines on the environment.  For Canada, the 
application o f Chapter 12 to the provinces of Canada is however subject to Annex 12 -B, which 
                                                
35 "State enterprise" means an enterprise owned or controlled through ownership interests by a Party, 
except as set out in Annex 9 -A to the Agreement.  WT/REG388/1  
 
- 25 - 
 
  states , inter alia , that, following the entry into force of the Agreement, Canada shall provide to 
Ukraine through diplomatic channels a written declaration indicating the prov inces for which 
Canada is to be bound by Chapter 12 in respect of matters within their jurisdiction .36 The 
declaration shall become effective on its date of receipt by Ukraine.  
4.36.   Chapter 12  recognizes that each Party has the sovereign right to conserve and pr otect its 
environment and sustainably manage its natural resources  (Article 12.2) . The Parties affirm their 
environmental obligations under their law s, as well as their international obligations under 
multilateral environmental agreements to which they are  party (Article 12.2) . The Parties 
recognize each other's ' rights to  set their own environmental priorities, to establish their own 
levels of environmental protection and to adopt or modify their environmental laws and policies 
accordingly  (Article 12.3) . The Chapter  encourages each Party to strive to ensure that th eir laws 
and policies provide for an d encourage high levels of environmental protection and to strive to 
continue to improve them and their underlying levels of protection  (Article 12.3) . Compl iance with 
and enforcement of environmental laws is addressed under Article 12.4. Moreover, each Party 
recognizes that it is inappropriate to encourage trade or investment by weakening or reducing the 
level of protection afforded in its environmental laws.  Accordingly, under Article 12.5 
(non-derogation), a Party shall not waive or derogate from its environmental laws in a manner 
that weakens or reduces the protections afforded in those laws, to encourage trade or investment.  
Chapter 12 does not affect the existing rights and obligations of either Party under international 
environmental agreements (Article  12.20).  
4.37.   The Chapter also contains provisions on environmental impact assessment through 
appropriate procedures; the promotion of public awareness of each Party's environmental 
legislation; private access to remedies against alleged violation of a Party's environmental laws; 
and procedural guarantees (Articles 12.6 through 12.9). It provides that each Party shall 
encourage voluntary best practices of corpora te social responsibility by enterprises established in 
its territory or subject to its jurisdiction, to strengthen coherence between economic and 
environmental objectives (Article 12.10). Moreover, certain measures to enhance environmental 
performance  are also to be envisaged by the Parties (Article 12.11).  
4.38.   Several provisions provide for transparency disciplines with respect to trade and 
environment, such as the designation of a national Contact Point (Article 12.12); rules on public 
information and account ability (Article 12.13); Party -to-Party information exchange procedures 
(Article 12.14); cooperative activities  to be strengthened (Article 12.15); public engagement 
(Article 12.18); as well restrictions to disclosure of information (Article 12. 19). 
4.39.   While the environment obligations are not subject to Chapter 17, some elements of the 
disciplines on dispute settlement established under Chapter 17 apply to dispute s over the 
interpretation and application of Chapter 12 . For example,  the procedures set out in A nnex 12 -A to 
the Agreement that apply to the selection of panellists. Moreover, at any time, the Parties may 
have recourse to means of alternative dispute resolution to resolve a matter, including good 
offices, conciliation or mediation. Unless the Parties  decide otherwise, alternative dispute 
resolution is confidential and without prejudice to the rights of the Parties in any proceeding.  
4.40.   The Chapter  establishes under Article 12.16 a Committee on the Environment to, inter alia, 
oversee and review the implem entation of Chapter 12.  The Committee shall also consider 
undertaking a review of the implementation of Chapter 12 within five years of the date of the entry 
into force of the Agreement  (Article 12.17) . Each Party also establishes a national Contact Point 
(Article 12.12).  
4.10.4   Labour  
4.41.   Chapter 13 contains disciplines on labour rights . As under Chapter 12 on Environment, for 
Canada, the application of the disciplines contained in Chapter 13 to the provinces of Canada is 
however subject to Annex 13 -D, which states, inter alia , that, following the entry into force of the 
Agreement, Canada shall provide to Ukraine through diplomatic channels a written declaration 
                                                
36 Canada clarifies that, to date, it has not provided a declaration since none of the  provinces have 
agreed to be bound.  WT/REG388/1  
 
- 26 - 
 
  indicating the provinces for which Canada is to be bound by Chapter 13 in respect of matters 
within their j urisdiction. The declaration shall become effective on its date of receipt by Ukraine.  
4.42.   In Chapter 13 , the Parties affirm their obligations as members of the International Labour 
Organization (ILO)  and their commitments to the ILO 1998 Declaration37 as well as the ILO 2008 
Declaration .38 Each Party shall ensure that its labour law s and practices embody and provide 
protection for a number of internationally recognized labour principles and rights listed in 
Article  13.3. 
4.43.   Section A of Chapter 13  mirrors some of t he disciplines on environment (Chapter 12), in 
particular the provisions on non -derogation; procedural guarantees; and public information and 
awareness. The Parties shall also promote compliance with and effectively enforce their labour 
laws through approp riate government action such as those listed in Article 13.5. They shall also 
ensure that a person with a recognized interest under their labour law s in a particular matter has 
appropriate access to administrative or tribunal proceedings, which can enforce  and give effect to 
the rights protected by that law, including by granting effective remedies for any breaches of that 
law (Article 13.6).  
4.44.   In Section B, Chapter 13  addresses a number of institutional mechanisms such as the 
establishment of a Labour Minist erial Council39 (Article 13.9); the convening of new, or consulting 
of existing, national labour advisory or consultative committees (Article 13.10); the development 
of a plan of action for cooperative labour activities .40 Public communications and general 
consultations provisions complement Section B of Chapter 1 3.  
4.45.   Section C of Chapter 13  contains disciplines on procedures for labour consultations and 
dispute settlement covering Ministerial consultations; the establishment and conduct of a review 
panel; as well as the content of review panel reports and determinations41 (Article 13.14 through 
13.16).   
4.46.    Enforcement principles, the inapplicability of private rights of action against a Party within 
the context of Chapter 13, disciplines on protection of informat ion42; and cooperation with 
international and regional organizations are contained in Section D of Chapter 13.  
4.47.   The provisions of Chapter 13 shall be reviewed in the context of the overall review of the 
Agreement which shall be undertaken by the Parties with in two years of its entry into force 
(Article  13.21).  
4.10.5   Trade -related cooperation  
4.48.   Chapter 15 addresses trade -related cooperation. The Parties undertake to promote trade -
related cooperation. Such cooperation may include , inter alia , exchange of information, transfer 
and exchange of expertise and training; joint studies and joint research; transfer of technology, 
skills and practices; institutional assistance and capacity -building; and participation in international 
activities.  In Ann ex 15 -A to the Agreement, the Parties establish an indicative list of potential 
subject mattes for trade -related cooperation. It includes "support for small and medium -sized 
enterprises (SMEs)"; "agriculture"; and "standard -setting".  
4.49.   Under Article 15.2, ea ch Party designates a Contact Point to facilitate communication 
concerning the implementation of Chapter 15.  
                                                
37 ILO Declar ation on Fundamental Principles and Rights at Work and its Follow -Up of 1998.  
38 ILO Declaration on Social Justice for a Fair Globalization of 2008.  
39 The Council may consider any matter within the scope of Chapter 13. It may also, inter alia , establish 
and assign responsibilities to committees, working groups, or expert groups, and seek the advice of 
independent experts.  
40 An indicative list of areas of possible cooperation between the Parties is set out in Annex 13 -A to the 
Agreement.  
41 Elements related to  monetary assessments in the context of review panel reports and determinations 
(Article 13.16) are contained in Annex 13 -C. 
42 Procedures related to review panels are contained in Annex 13 -B to the Agreement. The Annex covers 
qualifications of panellists; review panel selection procedures; and conduct of the review panel.  WT/REG388/1  
 
- 27 - 
 
  4.10.6   Review (Rendez -vous) Clause  
4.50.   The Parties undertake to review the Agreement within two years of its entry into force, in 
light of further development s including within the framework of the WTO Agreement, and other 
agreements to which the Parties are party (Article 19.2).  
4.51.   This review shall be conducted with a view to examining the further development and 
deepening of the Agreement's provisions and with a view to extending it to subject matters not 
covered therein, including cross -border trade in services, financial services, investment, 
telecommunications, temporary entry and any other subject area s as decided by the Parti es. WT/REG388/1  
 
- 28 - 
 
  ANNEX 1  
INDICATORS OF TRADE LIBERALIZATION UNDER  THE AGREEMENT  
Canada  
1. Table A1.1 shows tariff liberalization by Canada  in relation to imports from Ukraine  (by total, 
agricultural and non -agricultural products). In 2017 , Canada's average applied MFN rate was 5.4% 
overall (2.3 % for non -agricultural products and considerably higher at 20.8% for agricultural 
products). 71.6% of Canada's tariff was duty free on an MFN basis; 75 .1% of non -agricultural 
products and 55.2% of ag ricultural products were duty free. At the time of entry i nto force of the 
Agreement (2017 ), Ukraine's  exporters enjoyed an absolute margin of preference of 2.5% vis-à-
vis the prevailing MFN tariff; 2.3% for non -agricultural goods and 3.8% for agricultural  products. 
The share of duty free lines applicable to imports from Ukraine  immediately at the entry into force 
of the Agreement was 98.2% (90.8% for agricultural products and 99.7% for non -agricultural 
products). This share of duty -free tariff lines will f urther increase to reach 98.4% in 2024  (100% 
for non -agricultural products and 90.8% for agricultural products), by which time Canada will have 
fully implemented its tariff elimination programme, less than ten years after the entry into force of 
the Agreem ent.  
Table A1.1 Canada: Indicators of MFN tariff rates and preferential rates for imports from 
Ukraine  
Origin 
of 
goods  Year ALL PRODUCTS  Agricultural productsa Non-agricultural products  
Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average  applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff  Share of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2017 5.4 19.6 71.6 20.8 50.9 55.2 2.3 9.4 75.1 
Ukraine  
 
 
 
 
 
 
 
 
 2017 2.9 195.7  98.2 17.0 228.4  90.8 0.0 5.3 99.7 
2018 2.9 195.5  98.2 17.0 228.4  90.8 0.0 4.5 99.7 
2019 2.9 195.4  98.2 17.0 228.4  90.8 0.0 3.8 99.7 
2020 2.9 195.3  98.2 17.0 228.4  90.8 0.0 3.0 99.7 
2021 2.9 195.2  98.2 17.0 228.4  90.8 0.0 2.2 99.7 
2022 2.9 195.1  98.2 17.0 228.4  90.8 0.0 1.5 99.7 
2023 2.9 195.0  98.2 17.0 228.4  90.8 0.0 0.7 99.7 
2024 2.9 228.4  98.4 17.0 228.4  90.8 0.0 0.0 100.0  
a WTO Definition.  
Note:  Tariff lines subject to in -quota rates at the MFN level are excluded in the computation; for the 
calculation of averages, specific rates are excluded and the ad valorem  parts of alternate rates are 
included.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by Canada.  
 
2. Table A1.2 gives an indication of additional market access in Canada resulting from the 
entry into force of the Agreement for Ukraine's  top 25 global exports, which accounted for 50.8% 
of its global exports in 2013-2015; these corresponded to 26 lines in Canada's tariff at the si x-digit 
level (using the HS  2017). In 2017 , prior to the entry into force of the Agreement, 22 of these 
tariff lines already had (MFN) duty free access to Canada's market. With the entry  into force of the 
Agreement, in 2017 , the 4 tariff lines, which were dutiable, became duty free for exports from 
Ukraine . Consequently, at  the end of the implementation period, none of the lines covering 
Ukraine's  top 25 global exports will be dutiable.  WT/REG388/1  
 
- 29 - 
 
  Table A1.2 Canada: Market access opportunities under the agreement for Ukraine's top 
25 exports to the world   
Ukraine's top export products  
in 2013 -2015  Access Conditions to Canada's import 
markets  
HS number and description of the product  Share in 
global 
exports 
(%) MFN 2017  No. of 
duty free 
lines 
under the 
agreement  
2017  Average 
MFN 
applied 
rate 
(%) No. of 
duty 
free 
lines  No. of 
dutiable 
lines  
100590  Maize (excl. seed for sowing)  6.5 0.0 1   
151211  Crude sunflower -seed or safflower oil  5.9 4.5  1 1 
100199  Wheat and meslin (excl. seed for 
sowing, and durum wheat)  3.5 76.5  1 1 
260111  Non-agglomerated iron ores and 
concentrates (excl. roasted iron 
pyrites)  3.1 0.0 1   
720712  Semi-finished products of iron or non -
alloy steel containing, by weight, < 
0,25% of carbon, of rectangular 
"other than square" cross -section, the 
width measuring >= twice the 
thickness  2.9 0.0 1   
260112  Agglomerated iron ores and 
concentrates (excl. roasted iron 
pyrites)  2.8 0.0 1   
720720  Semi-finished products of iron or non -
alloy steel containing, by weight, >= 
0,25% of carbon  2.5 0.0 1   
720711  Semi-finished products of iron or non -
alloy steel containing, by weight, < 
0,25% of carbon, of square or 
rectangular cross -section, the width 
measuring < twice the thickness  2.4 0.0 1   
721420  Bars and rods, of iron or non -alloy 
steel, with indentations, ribs, groves 
or other deformations produced 
during the rolling process  2.2 0.0 1   
854430  Ignition wiring sets and other wiring 
sets for vehicles, aircraft or ships 1.9 0.0 1   
120510  Low erucic acid rape or colza seeds 
"yielding a fixed oil which has an 
erucic acid content of < 2% and 
yielding a solid component of 
glucosinolates of < 30 micromoles/g"  1.7 0.0 1   
230630  Oilcake and other solid residues, 
whether or not ground or in the form 
of pellets, resulting from the 
extraction of sunflower seeds  1.5 0.0 1   
720851  Flat-rolled products of iron or non -
alloy steel, of a width >= 600 mm, 
not in coils, simply hot -rolled, not 
clad, plated or coated, of a thickness 
of > 10 mm, without patterns in relief  1.4 0.0 1   
720110  Non-alloy pig iron in pigs, blocks or 
other primary forms, containing, by 
weight, <= 0,5% of phosphorous  1.4 0.0 1   
720839  Flat-rolled products of iron or non -
alloy steel, of a width of  >= 600 mm, 
in coils, simply hot -rolled, not clad, 
plated or coated, of a thickness of < 3 
mm, not pickled, without patterns in 
relief 1.3 0.0 1   
100390  Barley (excl. seed for sowing)  1.2 57.8  2 2 
120190  Soya beans, whether or not broken 
(excl. seed for sowing)  1.2 0.0 1   WT/REG388/1  
 
- 30 - 
 
  Ukraine's top export products  
in 2013 -2015  Access Conditions to Canada's import 
markets  
HS number and description of the product  Share in 
global 
exports 
(%) MFN 2017  No. of 
duty free 
lines 
under the 
agreement  
2017  Average 
MFN 
applied 
rate 
(%) No. of 
duty 
free 
lines  No. of 
dutiable 
lines  
310210  Urea, whether or not in aqueous 
solution (excl. that in pellet or similar 
forms, or in packages with a gross 
weight of <= 10 kg)  1.2 0.0 1   
721391  Bars and rods, hot -rolled, in 
irregularly wound coils, of iron or non -
alloy steel, of circular cross -section 
measuring < 14 mm in diameter 
(excl. bars and rods of free -cutting 
steel, and bars and rods with 
indentations, ribs, grooves or other 
deformations produced during the 
rolling process)  1.1 0.0 1   
720230  Ferro-silico-manganese  1.1 0.0 1   
281820  Aluminium oxide (excl. artificial 
corundum)  0.9 0.0 1   
841122  Turbopropellers of a power > 1.100 
kw 0.9 0.0 1   
271600  Electrical energy  0.8 0.0 1   
281410  Anhydrous ammonia  0.8 0.0 1   
720852  Flat-rolled products of iron or non -
alloy steel, of a width of >= 600 mm, 
not in coils, simply hot -rolled, not 
clad, plated or coated, of a thickness 
of >= 4,75 mm but <= 10 mm, 
without patterns in relief  0.7 0.0 1   
  Total  50.8  22 4 4 
Note:  For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are included.  
  Based on the HS 2017 nomenclature . 
Source:  WTO estimates based on data provided by Canada and UNSD, Comtrade database.  
 
Ukraine  
3. Table A1.3 shows tariff liberalization by Ukraine  in relation to imports from Canada (by total, 
agricultural and non -agricultural products). In 2017 , Ukraine's  average applied MFN rate was 4.9% 
overall ( 3.6% for non -agricultural products and 9.7% for agric ultural products). 37.9% of 
Ukraine's  tariff was duty free on an MFN basis; 44% of non -agricultural products and 14.9% of 
agricultural products were duty free. At the time of entry into force of the Agreement (201 7), 
Canada's exporters enjoyed an absolute margin of preference of 2.7% vis-à-vis the prevailing MFN 
tariff; 2.2% for non -agricultural goods and 4.5% for agricultural products. The share of duty free 
lines applicable to imports from Canada immediately at the entry into force of the Agreement was 
72.6% (51% for agricultural products and 78.3% for non -agricultural products). During the 
following years, this share of duty -free tariff lines will further increase to reach 99% in 2024 , less 
than ten years after the entry into force of the Agreement ( 100% for non -agricultural products and 
95.4% for agricultural products).  WT/REG388/1  
 
- 31 - 
 
  Table A1.3 Ukraine: Indicators of MFN tariff rates and preferential rates for imports from 
Canada  
Origin 
of 
goods  Year ALL PRODUCTS  Agricultural productsa Non-agricultural products  
Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff  Share of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2017 4.9 7.9 37.9 9.7 11.5 14.9 3.6 6.5 44.0 
Canada  
  
  
  
  
  
  
  
  
  2017 2.2 7.9 72.6 5.2 10.7 51.0 1.4 6.2 78.3 
2018 1.7 6.4 72.6 4.3 8.7 51.1 1.1 5.0 78.3 
2019 1.3 4.9 72.6 3.3 6.8 51.1 0.8 3.7 78.3 
2020 0.9 3.9 76.7 2.4 6.9 65.8 0.5 2.6 79.6 
2021 0.6 2.6 76.7 1.9 5.4 65.8 0.3 1.4 79.6 
2022 0.3 4.6 93.6 1.3 4.7 71.6 0.0 2.5 99.4 
2023 0.2 3.2 93.6 0.9 3.3 71.6 0.0 1.2 99.4 
2024 0.1 11.8 99.0 0.5 11.8 95.4 0.0 0.0 100.0  
a WTO Definition.  
Note:  Tariff lines subject to in -quota rates are excluded  in the computation; for the calculation of MFN 
averages, specific rates are excluded and the ad valorem  equivalent (AVEs) provided by the 
Ukrainian authorities are included . 
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on d ata provided by the Ukrainian authorities . 
 
4. Table A1.4 gives an indication of additional market access in Ukraine  resulting from the 
entry into force of the Agreement for Canada's top 25 global exports, which accounted for 49.4% 
of its global exports in 2013 -2015; these corresponded to 147 lines in Ukraine's  tariff at the 
six-digit level (using the HS  2012). In  2017, prior to the entry into force of the Agreement, 89 of 
these tariff lines already had (MFN) duty free access to Ukrain e's market. With the entry into  force 
of the Agreement, in 2017 , 49 of the 58 tariff lines, which were dutiable, became duty free for 
exports from Ukraine . The 9 remaining dutiable tariff lin es will become duty -free in 2022  (7 lines) 
and 2024 (2  lines). At the end of the implementation period, none of the lines covering Canada's 
top 25 global exports will be dutiable.  
Table A1.4 Ukraine: Market access opportunities under the agreement for Canada's top 
25 exports to the world   
Canada's top export produ cts  
in 2013 - 2015  Access Conditions to Ukraine 's import 
markets  
HS number and description of the product  Share in 
global 
exports 
(%) MFN 2017  No. of duty 
free lines 
under the 
agreement  
Average 
MFN 
applied 
rate 
(%) 
No. of 
duty 
free 
lines  
No. of 
dutiable 
lines 
2017  
2022  
2024  
270900  Petroleum oils and oils obtained from 
bituminous minerals, crude  16.2 0.0 2     
870324  Motor cars and other motor vehicles 
principally designed for the transport of 
persons, incl. station wagons and racing 
cars, with spark -ignition internal 
combustion reciprocating piston engine of 
a cylinder capacity > 3.000 cm³ (excl. 
vehicles for the transport of persons on 
snow and other specially designed vehicles 
of subheading 8703.10)  5.5 8.3  3 2  1 WT/REG388/1  
 
- 32 - 
 
  Canada's top export produ cts  
in 2013 - 2015  Access Conditions to Ukraine 's import 
markets  
HS number and description of the product  Share in 
global 
exports 
(%) MFN 2017  No. of duty 
free lines 
under the 
agreement  
Average 
MFN 
applied 
rate 
(%) 
No. of 
duty 
free 
lines  
No. of 
dutiable 
lines 
2017  
2022  
2024  
870323  Motor cars and other  motor vehicles 
principally designed for the transport of 
persons, incl. station wagons and racing 
cars, with spark -ignition internal 
combustion reciprocating piston engine of 
a cylinder capacity > 1.500 cm³ but <= 
3.000 cm³ (excl. vehicles for the transpo rt 
of persons on snow and other specially 
designed vehicles of subheading 8703.10)  4.4 8.8  8 7  1 
710812  Gold, incl. gold plated with platinum, 
unwrought, for non -monetary purposes 
(excl. gold in powder form)  3.2 2.0  1 1   
271121  Natural gas in gaseous  state 2.5 0.0 1     
271019  Medium oils and preparations, of 
petroleum or bituminous minerals, not 
containing biodiesel, n.e.s.  1.9 0.9 32 8 8   
440710  Coniferous wood sawn or chipped 
lengthwise, sliced or peeled, whether or 
not planed, sanded or end-jointed, of a 
thickness of > 6 mm  1.6 0.0 7     
271012  Light oils and preparations, of petroleum 
or bituminous minerals which >= 90% by 
volume "incl. losses" distil at 210°c "astm 
d 86 method" (excl. containing biodiesel)  1.3 3.1 25 22 22   
310420  Potassium chloride for use as fertiliser 
(excl. that in tablets or similar forms, or in 
packages with a gross weight of <= 10 
kg) 1.2 3.3 1 2  2  
100199  Wheat and meslin (excl. seed for sowing, 
and durum wheat)  1.1 10.0  1 1   
880240  Aeroplanes and other powered aircraft of 
an of an unladen weight > 15.000 kg 
(excl. helicopters and dirigibles)  1.0 0.0 1     
120510  Low erucic acid rape or colza seeds 
"yielding a fixed oil which has an erucic 
acid content of <  2% and yielding a solid 
component of glucosinolates of < 30 
micromoles/g"  1.0 0.0 2     
270112  Bituminous coal, whether or not 
pulverised, non -agglomerated  0.9 0.0 2     
300490  Medicaments consisting of mixed or 
unmixed products for therapeutic or 
prophylactic purposes, put up in measured 
doses "incl. those in the form of 
transdermal administration" or in forms or 
packings for retail sale (excl. medicaments 
containing antibiotics, medicaments 
containing hormones or steroids used as 
hormones, but not  containing antibiotics, 
medicaments containing alkaloids or 
derivatives thereof but not containing 
hormones or antibiotics and medicaments 
containing  provitamins, vitamins or 
derivatives thereof used as vitamins)  0.9 0.0 1     
470321  Semi-bleached or ble ached coniferous 
chemical wood pulp, soda or sulphate 
(excl. dissolving grades)  0.9 0.0 1     WT/REG388/1  
 
- 33 - 
 
  Canada's top export produ cts  
in 2013 - 2015  Access Conditions to Ukraine 's import 
markets  
HS number and description of the product  Share in 
global 
exports 
(%) MFN 2017  No. of duty 
free lines 
under the 
agreement  
Average 
MFN 
applied 
rate 
(%) 
No. of 
duty 
free 
lines  
No. of 
dutiable 
lines 
2017  
2022  
2024  
870829  Parts and accessories of bodies for 
tractors, motor vehicles for the transport 
of ten or more persons, motor cars and 
other motor vehicles principally designed 
for the transport of persons, motor 
vehicles for the transport of goods and 
special purpose motor vehicles (excl. 
bumpers and parts thereof and safety seat 
belts)  0.8 2.5 1 1 1   
260300  Copper ores and concentrates  0.7 2.0  1 1   
760120  Unwrought aluminium alloys  0.6 0.0 3     
760110  Aluminium, not alloyed, unwrought  0.6 0.0 1     
870899  Parts and accessories, for tractors, motor 
vehicles for the transport of ten or more 
persons, motor cars and other motor 
vehicles principally designed for the 
transport of persons, motor vehicles for 
the transport of goods and special purpose 
motor vehicle s, n.e.s.  0.6 1.6 4 3 1 2  
271600  Electrical energy  0.6 2.0  1 1   
840734  Spark -ignition reciprocating piston engine, 
of a kind used for vehicles of chapter 87, 
of a cylinder capacity > 1.000 cm³  0.5 2.5 3 3  3  
390190  Polymers of ethylene, in primary forms 
(excl. polyethylene and ethylene -vinyl 
acetate copolymers)  0.5 3.3 1 2 2   
260111  Non-agglomerated iron ores and 
concentrates (excl. roasted iron pyrites)  0.5 2.0  2 2   
480100  Newsprint as specified in note 4 to chapter 
48, in rolls of a width > 36 cm or in 
square or rectangular sheets with one side 
> 36 cm and the other side > 15 cm in 
the unfolded state  0.5 0.0 1     
Total 49.4  89 58 49 7 2 
Note:   For the calculation of MFN averages, specific rates are excluded and the ad valorem  equivalents 
(AVEs) provided by the Ukrainian authorities are included.  
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by the Ukrainian authorities  and UNSD, Comtrade database.  
__________