Ukrainian American Bar AssociationOctober 15, 2016

Practice Experience

Knowledge

Education

Canada – Ukraine Free Trade Agreement. A Primer

Canada – Ukraine FTAJuly 11, 2016

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Experience

Integrity

Value

Canada – Ukraine FTABackground

∞ Negotiations commenced 2010∞ 6 rounds of negotiations∞ Signed July 14, 2015∞ Foreign Investment Promotion and

Protection Agreement entered into force July 24, 1995

∞ Formally signed July 11, 2016∞ Ratification Date: ?∞ Effective Date: ? (acting as if in

effect)

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Experience

Integrity

Value

Overview: Concentric Circle Approach – Core – Trade in Goods

Opportunities

Knowledge

Market Access

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Canada-Ukraine FTA ChaptersChapter 1 – GeneralChapter 2 – National Treatment and Market AccessTariff Schedules

Overview: Concentric Circle Approach – Core – Trade in Goods

Knowledge

Experience

Compliance

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Canada-Ukraine FTA Chapters-Chapter 2-Chapter 3 – Rules of Origin and Origin Procedures-Chapter 4 – Trade Facilitation-Chapter 6 – SPS-Chapter 7 - TBT

Overview: Concentric Circle Approach – Core – Comprehensive PTA

Experience

Opportunities

Access

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Canada-Ukraine FTA ChaptersChapter 8 – E-CommerceChapter 9 – Competition, Monopolies Policy, SOEsChapter 10 – Government ProcurementChapter 11 – Intellectual Property

Overview: Concentric Circle Approach – Core – Operational

Knowledge

Transparency

Cooperation

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Canada-Ukraine FTA Chapters-Chapter 15 – Cooperation-Chapter 16 –Administration-Chapter 17 – Dispute Settlement-Chapter 18 – Exceptions-Chapter 19 – Final Provisions

Overview: Concentric Circle Approach – Core – New Issues

Knowledge

Action

Experience

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Canada-Ukraine FTA Chapters-Chapter 12 – Environment-Chapter 13 – Labour-Chapter 14 – Transparency/Anti-Corrpution

Canada – Ukraine FTA

∞ No trade in services chapter (BUT, Governments Procurement commitments include some services)

∞ No financial services chapter∞ No telecommunications chapter∞ No investment chapter∞ No labour mobility chapter∞ No energy chapter or energy products∞ No SME Chapter like TPP

Opportunities

Experience

Value

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Canada – Ukraine FTA∞ Goods from Canada to Ukraine

∞ Ukraine will immediately eliminate tariffs on 86% of Canada’s current exports to Ukraine

∞ 14% of tariffs will be phased out over periods up to 7 years

∞ Beef, pork, canola oil, grains, soybeans, potatoes, French fries, apples, wines, ice wines, maple syrup, forestry and wood products, processed foods, pet feed and animal feed, frozen fish, caviar, cosmetics, pharmaceuticals, iron and steel products, plastics, aerospace, industrial machinery, chemicals, cultures, medications, cooling coal, boring and sinking machinery, trailers, semi-trailers, air compressors, tractors, reservoir tanks, motor boats, asphalt, tires, musical instruments, telescopes, periscopes, drilling tools, and meteorological, geophysical and other surveying instruments

Outbound

Customs

Market Access

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Canada – Ukraine FTA (Cont’d)

∞ Goods from Ukraine to Canada∞ Canada will immediately eliminate tariffs

on 99.9% of current imports from Ukraine

∞ Industrial products, fish and seafood, agricultural products

∞ Sunflower oil, sugar, chocolate, candies, molasses, baked goods, vodka, beer, apparel, ceramics, iron and steel and minerals

∞ Canada excluded all over quota tariffs for supply managed products (dairy, poultry and eggs)

Inbound

Customs

Opportunities

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Reading the Tariff Schedules

∞ Tariff Item (e.g., 2208.60 = vodka)∞ Description∞ Base Rate (starting duty rate)∞ Staging Category

∞ 0 = Duty Free Immediately

∞ 5 = Duties Eliminated over 5 years

∞ 7 = Duties Eliminated over 7 years

∞ E = Exempt from duty reduction/elimination)

∞ Good news – vodka is duty free immediately

Market Access

Economic Sanctions

Knowledge

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Opportunities – How USA Companies Can Benefit

Tax

Experience

Opportunities

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US companies/importers can use the Canada-Ukraine FTA benefits by using NAFTA

Canada-Ukraine FTAGovernment Procurement

∞ Covers Canadian federal government contracts 7 10 Federal Agencies (e.g., Canada Post)

∞ Does not cover Canadian provincial or municipal contracts

∞ Covers Ukrainian central government entities, including government departments and agencies∞ Airports∞ Postal system∞ Public transportation (rail and subway)

Procurement

Goods

Integrity

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Opportunities for Lawyers

∞ Trade in Goods

∞ Customs, Tariff Classification, Valuation

∞ Export Controls/Economic Sanctions

∞ Packaging and Labelling, Language Laws

∞ Standards, approvals

∞ IP Issues

∞ Government Procurement

∞ Assisting in preparation of RFPs, RFQs

Market Access

Economic Sanctions

Knowledge

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Cyndee Todgham Cherniak

cyndee@lexsage.comMobile: (416) 389-8999

The Gooderham "Flatiron" Building 49 Wellington Street East , Suite 501Toronto, Ontario  M5E 1C9

Phone: 416-307-4168/416-760-8999Main Office: 647-290-4249Fax: 416-760-899

Experience