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15 of July, 13:01

Analyst to overestimate the development of a free trade zone between Ukraine and Canada is not worth it
To overestimate the development of a free trade zone between Ukraine and Canada is not worth the remoteness of country pairs between them, the difficulties in logistics are unlikely to help complete commodity flow, said Fins news the Ukrainian political scientist, Director of the Ukrainian Institute of global strategies Vadim Karasev.

Ukraine and Canada signed on Tuesday a document on completion of negotiations on creation of free trade zone. According to the press service of the Cabinet of Ministers of Ukraine, the provisions of the draft agreement provide, for example, the deepening of trade and economic cooperation, as well as among them in the trade of industrial and agricultural goods, protection of intellectual property, public procurement regulations. Immediately after the Treaty's entry into force, Canada will open Ukrainian exporters free access to 98% of their market items. At the same time Ukraine before to liberalize the market, completely abolishing import duties will have a transition period. In the long term for business the contract will be the opportunity to diversify trade flows, will be the impetus for the modernization of the Ukrainian factories for the production of items With high added value for export to Canada, stresses the Cabinet.


"needless to say, this is an important step in the context of bilateral relations, which had a bias towards purely political and symbolic, these bilateral relations are able to obtain, trade, and economic content. That is, to have at least a pragmatic component. On the reverse side, to exaggerate the Treaty on the free trade area is also not necessary. Because, Although the Prime Minister stated that Canada can become the Ukrainian market for those items that are currently for whatever reason do not have the ability to find a market for the trading markets of the Russian Federation and States of the Customs Union, logistics, remoteness is unlikely to be able to fill these opportunities full trade flow, " said Karasev.

for this reason, showed he, most likely, the agreement on free trade area With Canada - it's more of a political and economic move, and not a purely economic one.

"without a doubt, important, positive, but it is unlikely it will create any capacious market for Ukrainian products. Although, somehow, Ukrainian producers have the opportunity to find a niche to market on the trading markets of Canada. Anyway, currently one of the main tasks of the foreign policy of any country is to look for additional markets. So as to produce at the present time is not a problem, considering the technology, but to sell is the problem. For this reason, any extension of foreign markets, additional markets, of course, important for any state, " drew the attention of a specialist.

Answering the question of what goods Ukraine will have the opportunity to put on the canadian market, Karasev recalled that Prime Minister Yatsenyuk said about the products of mechanical engineering.

"maybe it's metal, as Ukrainian steel producers, steel producers and iron work in the American market, and may be, such option as if it is planned and With the canadian market. Anyway, the more open markets, more than free trade, the better. For this reason, by itself, is not a breakthrough in the development of new economic opportunities in Ukraine, but a step forward, " he added.


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