Canada and Ukraine announce ‘milestone’ free trade agreement

Canada formally announced a “milestone” free trade agreement with Ukraine after the two countries’ prime ministers met in Ottawa on Tuesday.

The agreement, which has to be ratified by both nations’ parliaments, will be implemented as soon as possible, Stephen Harper said after meeting Arseniy Yatsenyuk.

With more than a million people claiming roots in Ukraine, Canada has supported Kiev many times since the 2014 revolution and Russia’s annexation of the Crimean peninsula.

Also, Canada was the first western country to recognise Ukraine’s independence, in December 1991.

The trade deal is expected to lift the Canadian GDP by C$29.2m (US$22.9m) and Ukraine’s by C$18.6m, Canadian government evaluations show.

“Today’s conclusion of the Canada-Ukraine free trade agreement is another milestone in the important relationship between our two countries,” Harper said.

Canada will eliminate tariffs on 99% of imports from Ukraine and increase exports to Ukraine by C$41.2m.

Meanwhile, financially troubled Ukraine will reduce tariffs on 86% of Canadian imports and increase exports to Canada by C$23.7m, mainly in the textile and metalworking industries.

The Ukrainian economy has taken a nosedive after three years of recession and more than a year of war. Its national debt is expected to reach nearly 94% of GDP in 2015, the International Monetary Fund says.