11 May 2022 14:37

Canada to lift all import tariffs on Ukrainian goods for 1 year

KYIV. May 11 (Interfax-Ukraine) - Following in the footsteps of the United Kingdom and the European Union, Canada will also lift all import tariffs on goods from Ukraine for one year, Canadian Prime Minister Justin Trudeau said after meeting with Ukrainian President Volodymyr Zelensky in Kyiv on Sunday.

"By removing tariffs for a one year period, Canada would continue to support Ukraine's economy by ensuring that Ukrainian goods are able to enter Canada duty-free," Canada's Department of Finance said in a statement.

While most goods from Ukraine enter Canada duty-free as a result of the Canada-Ukraine Free Trade Agreement (CUFTA), tariffs still apply on certain goods, it said.

The proposed measure would come into force once the Order in Council is approved and registered. The Canada Border Services Agency will then issue a Customs Notice detailing how importers can claim relief under the remission order.

From 2019 to 2021, Ukrainian exports to Canada averaged 170.8 million Canadian dollars (CAD) annually, and Canada collected about CAD2.6 million in duties from these goods.

"it is a good follow-up to the initiative of the EU and the UK and confirms developed states' interest in involving the Ukrainian economy in their own industrial and trade chains," Ukrainian First Deputy Prime Minister and Economy Minister Yulia Svyrydenko said when commenting on Canada's decision.

Trudeau also announced the allocation of CAD10 million to support human rights, civil society and mine clearance efforts in Ukraine.

Since February 2022, Canada has already provided CAD245 million in humanitarian aid and more than CAD131 million in military assistance to Ukraine, he said. Furthermore, there is a propose to earmark in Canada's 2022 budget a CAD1 billion loan, which will be issued via the IMF-managed account for Ukraine. This will be provided on top of the CAD620 million in bilateral loans, where CAD500 million has already been transferred to Ukraine.