On December 16, 2015, the Canada-Ukraine Chamber of Commerce (CUCC) had its Christmas party in the UNF Trident Hall at 145 Evans Ave. in Toronto. Despite the short notice, the turnout was good (see below) and apart from CUCC members included consuls of Malta and Dominican Republic in Canada, and representatives of Lithuanian and Polish Chambers of Commerce.
At the party, the CUCC President Mr. Zenon Potichny made the announcement that the Government of Canada has pledged to contribute $13.6 million to the Canada-Ukraine Trade and Investment Support project which will function from 2016 to 2021. In their announcement on the next day, the Honourable Chrystia Freeland, Minister of International Trade, and the Honourable Marie-Claude Bibeau, Minister of International Development and La Francophonie, said that the funding is expected to increase trade and investment between Canada and Ukraine, and in particular help small and medium-sized enterprises in Ukraine access Canadian and global markets. Minister Freeland made the announcement following her meeting with Nataliya Mykolska, Deputy Minister of Economic Development and Trade, Trade Representative of Ukraine, on the margins of the World Trade Organization's 10th Ministerial Conference in Nairobi, Kenya.
To deliver the project, the Government of Canada is partnering with the Conference Board of Canada and the Canada-Ukraine Chamber of Commerce. The project will equip small and medium-sized enterprises, particularly those led by women, with the tools, training and knowledge necessary to export their products and services to Canadian and other markets and to attract Canadian investment to expand their businesses.
The project will also help the Ukrainian government develop investment attraction and diversification strategies and conduct market research to facilitate increased trade and investment between Canada and Ukraine. In addition, Canada will provide technical assistance to help Ukraine's public and private sectors identify and take advantage of new trade opportunities resulting from the implementation of the Canada-Ukraine Free Trade Agreement (CUFTA).
In the government's press-release about the announcement, Chrystia Freeland, Minister of International Trade, was quoted as saying, “Canada is committed to supporting Ukraine's government and private sector to take advantage of new trade opportunities arising from implementation of the Canada-Ukraine Free Trade Agreement. By bolstering the growth and competitiveness of Ukraine's small and medium-sized businesses, we are building mutual prosperity for both our countries.” Marie-Claude Bibeau, Minister of International Development and La Francophonie, in turn, said: “Canada is committed to promoting inclusive sustainable economic growth in Ukraine. By increasing trade and investment for Ukrainian businesses, we are helping to improve the lives of the country's poorest and most vulnerable people.”
In his interview for the New Pathway, the CUCC President Zenon Potichny explained that the Canada-Ukraine Free Trade Agreement (CUFTA), whose conclusion was announced in 2015, is expected to come into force next year, after it is ratified by the both countries' Parliaments. Mr. Potichny said that bilateral merchandise trade between Canada and Ukraine on average amounts to less than $300 million annually, which is not a big amount for this kind of economies (according to the Canadian government it amounted to just $244 million in 2014). Moreover, in this amount, Ukrainian exports to Canada constitute only about 25%. The Canada-Ukraine Trade and Investment Support project is aimed at increasing the Ukrainian exports to Canada and thus balancing the trade between the two countries which should help the struggling Ukrainian economy, especially on the background of the disruption of its trade with the Russian Federation due to the Russian aggression.
Mr. Potichny also explained that the Canada-Ukraine Trade and Investment Support project was initiated by the Conference Board of Canada, and that the Board and the CUCC supplied it to the government jointly about 1.5 years ago. First and foremost, the project will aim to identify the areas where Canada requires imported goods and services. It will then look for the industries in Ukraine which produce and provide those goods and services. The project aims to identify about five such industries and about five top producers within every industry that satisfy the Canadian market requirements.
Apart from the matching of Canadian and Ukrainian companies with the purpose of arranging Ukrainian imports to Canada, the project will teach Ukrainian companies how to prepare their goods and services for exports in terms of marketing and certification, how to negotiate export contracts, etc. It will also provide training for Ukrainian government officials on how to negotiate free trade agreements and agreements within the World Trade Organization. As the project has the investment portion in it, it is also going to look for areas in need for investment in Ukraine and for companies in Canada which could provide the investment.
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