CUFTA(Canada Ukraine FTA) and CIFTA(Canada Israel FTA): Features

CUFTA(Canada Ukraine FTA) and CIFTA(Canada Israel FTA): Features

Question: Recently, Canada signed two FTAs namely CUFTA and CIFTA. Highlight the key features of each.

CUFTA

- CUFTA or the Canada Ukraine Free Trade Agreement was recently successfully concluded

- The bilateral FTA aims to boost commercial and business ties between the two nations and create job opportunities for Canadians

- CUFTA will enhance market access for exports from Canada to Ukraine

- It will also facilitate addressing non-tariff barriers and further develop economic ties

- As per this FTA, Canada’s GDP will rise by USD 29.2 million while Ukraine’s GDP will rise by USD 18.6 million

- CUFAT will ensure Ukrainian exports have improved access to Canada’s market

- This is consistent with the unflinching commitment of the Canadian government to support economic reforms and democratic transition in Ukraine

- Following the agreement coming into force, Canada and Ukraine will eliminate duties on 99.9 percent and 86 percent of concerned current imports

- This will benefit Canadian and Ukrainian customers and exporters

- Agreement will also lead to elimination of various industrial and agricultural tariffs

- This includes tariffs on wood and forestry products, fish and seafood as well as industrial goods

- Canadian agricultural exporters will be able to access duty free beef, pulses, grains, canola oil, processed foods and animal feed.

- Pork producers from Canada will benefit from improved access to Ukrainian market through a large tariff rate quota

- The inclusion of Ukraine as a priority emerging market under the Global Markets Action Plan in Canada and one of the development countries of focus in Canada have also formed part of the agreement

- Canada’s market access plan will help SMBs to access new business opportunities in Ukraine

CIFTA

- Canadian PM Stephen Harper also announced the negotiations towards an expanded, modernised Canada-Israel Free Trade Agreement has concluded successfully

- Updated CIFTA will provide expanded market access opportunities for fish, seafood and agricultural products through removal or reduction of Israeli tariffs

- There will also be reduction on tariffs on large number of products and duty free access under tariff rate quotas for specific products

- 4 existing areas of current CIFTA have been modernised namely market access for goods, rules of origin, dispute settlement, institutional provisions as per a new statement

- 7 new chapters have been included in trade facilitation, sanitary and phytosanitary measures, technical obstacles to trade, intellectual property, electronic commerce, labor and environment

- Robust CIFTA will provide support for businesses and investors in Canada besides deepening trade and investment linkages and strengthening the bilateral relationship between Canada and Israel

- Deep cooperation between the two countries is the focus of the FTA

- Updated version of existing CIFTA awaits approval of Canadian Parliament

- It will reduce tariffs and other barriers besides enhancing cooperation and raising transparency in regulatory issues

- It will also provide duty free access under tariff rate quotas for specific products

Facts and Stats

- Total bilateral trade between Canada and Ukraine equalled USD 347 million in 2011-2013.

- As a result of implementation of this agreement, it is expected to rise by 19 percent as a consequence of this trade agreement

- Since the year 2006, Government of Canada has formed FTAs with 39 nations

- It has concluded a total of 44 FTAs

- Conclusion of the Canada-European Union Comprehensive Economic and Trade Agreement and Canada Korea Free Trade Agreement will lead to preferential access of greater than half the global marketplace by Canadian exporters

- Expanded CIFTA came into force with effect from 1997. Its two way merchandise trade with Israel was projected at USD 1.2 billion Canadian dollars in the past year