Cyndee Todgham Cherniak spoke at the Ukrainian-American Bar Association on October 15, 2016 regarding the Canada-Ukraine Free Trade Agrement

1. Ukrainian American Bar Association
October 15, 2016
Practice Experience
Knowledge
Education
Canada – Ukraine Free Trade Agreement. A Primer

2. Canada – Ukraine FTA
July 11, 2016
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Experience
Integrity
Value

3. Canada – Ukraine FTA
Background
∞ 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

4. Overview: Concentric
Circle Approach – Core
– Trade in Goods
Opportunities
Knowledge
Market
Access
4
Canada-Ukraine FTA
Chapters
Chapter 1 – General
Chapter 2 – National
Treatment and
Market Access
Tariff Schedules

5. Overview: Concentric
Circle Approach – Core
– Trade in Goods
Knowledge
Experience
Compliance
5
Canada-Ukraine FTA
Chapters
-Chapter 2
-Chapter 3 – Rules of
Origin and Origin
Procedures
-Chapter 4 – Trade
Facilitation
-Chapter 6 – SPS
-Chapter 7 - TBT

6. Overview: Concentric
Circle Approach – Core
– Comprehensive PTA
Experience
Opportunities
Access
6
Canada-Ukraine FTA
Chapters
Chapter 8 – E-Commerce
Chapter 9 – Competition,
Monopolies Policy, SOEs
Chapter 10 – Government
Procurement
Chapter 11 – Intellectual
Property

7. 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

8. Overview: Concentric
Circle Approach – Core
– New Issues
Knowledge
Action
Experience
8
Canada-Ukraine FTA
Chapters
-Chapter 12 – Environment
-Chapter 13 – Labour
-Chapter 14 –
Transparency/Anti-
Corrpution

9. 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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10. 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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11. 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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12. 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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13. Opportunities – How USA
Companies Can Benefit
Tax
Experience
Opportunities
13
US companies/importers can use the Canada-Ukraine
FTA benefits by using NAFTA

14. Canada-Ukraine FTA
Government 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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15. 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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16. Cyndee Todgham Cherniak
cyndee@lexsage.com
Mobile: (416) 389-8999
The Gooderham "Flatiron" Building
49 Wellington Street East , Suite 501
Toronto, Ontario M5E 1C9
Phone: 416-307-4168/416-760-8999
Main Office: 647-290-4249
Fax: 416-760-899
Experience