“Russia’s unprovoked attack has had a significant impact on Ukraine’s economy and its ability to export goods to other countries,” the Department of Finance said in a backgrounder announcing the proposal on May 8.
While most goods from Ukraine already enter Canada duty free as a result of the Canada-Ukraine Free Trade Agreement (CUFTA), tariffs still apply on certain goods where tariffs are being phased out under the Agreement, or where they are excluded from it, the backgrounder noted.
From 2019 to 2021, Ukrainian exports to Canada averaged $170.8 million annually, and Canada collected around $2.6 million in duties from these goods.
Canada is proposing to remove those tariffs for a one-year period and, by doing so, “Canada would continue to support Ukraine’s economy by ensuring that Ukrainian goods are able to enter Canada duty-free,” the backgrounder said.
The proposed measure would come into force once an order-in-council is approved and registered. The Canada Border Services Agency would then issue a Customs Notice detailing how importers could claim relief under the remission order.
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