Canada's Minister Day in Ukraine: FTA Talks

The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, visited Ukraine September 22-23.

On the first day of his visit Minister Day announced the launch of talks with Ukraine on a free trade agreement (FTA) with Ukraine’s Minister of Economy Bohdan Danylyshyn after negotiations the economic ministry. Minister Day met with the Prime Minister of Ukraine, Yulia Tymoshenko, to address a number of challenges related to the ability of Canadian businesses to invest in the Ukrainian market. Canada’s strong commercial relationship with Ukraine is marked by growing trade and investment.

Both Canada and Ukraine have agreed to meet in the coming months to  discuss a range of trade and investment issues to facilitate economic relations and fight protectionism.

During his visit, Minister Day also met with the Minister of Agrarian Policy of Ukraine Yuriy Melnyk, First Deputy Head of the Secretariat of the President of Ukraine Olexandr Shlapak, and Director-General of the National Space Agency, Olexandr Zinchenko, to support cooperation in the aerospace sector. Finally, Minister Day met with Ukraine’s Minister of Fuel and Energy, Yurii Prodan, to discuss the feasibility of Canadian CANDU technology for the expansion of Ukraine’s nuclear program.

Minister Day concluded the two-day visit to Ukraine by announcing the signing of a number of commercial contracts between Ukrainian and Canadian companies.

In particular, contracts between Canada’s SNC-Lavalin Group Inc. - West Group Engineering joint venture and Ukraine’s UkrAgroLeasing, worth over $640 million, are for the design and engineering of grain-storage facilities and milk-collection systems across Ukraine. SNC-Lavalin Group Inc. - West Group Engineering has also reached an agreement with Ukraine’s Ministry of Health to build medical clinics across rural Ukraine.

While in Ukraine, Minister Day also oversaw the signing of an agreement valued at $254 million between MacDonald, Dettwiler and Associates (MDA) of Richmond, B.C., and the National Space Agency of Ukraine to build satellite communications systems in advance of the Euro 2012 soccer tournament being co-hosted by Ukraine.

An FTA with Ukraine could further open markets for Canadian exports ranging from agricultural and seafood products to machinery and pharmaceuticals. It could also help to address non-tariff barriers. Free trade agreements also help to strengthen the Canadian economy, to create new jobs and to lower prices for Canadian consumers. Canadian merchandise exports to Ukraine (not India as some sources incorrectly reported earlier) totalled $229.7 million in 2008, an 80-percent increase from the year before and a 400-percent jump from 2004. In 2008, agricultural and aerospace machinery topped the list of Canadian exports.

 Compiled by John Pidkowich with government press releases.