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
Post your comment