Wednesday, July 15, 2015

Ukraine drops tariffs on Canadian meats and grains

Ukraine will drop its tariffs on Canadian meats and grains as part of a free trade deal announced this week by Prime Minister Stephen Harper  during a visit from Ukraine’s Prime Minister Arseniy Yatsenyuk.

The deal now awaits ratification from both governments.

The agreement, under negotiation since 2009, eliminates “the vast majority” of Ukraine’s tariffs on Canadian agricultural and agri-food imports, the government said.

That includes duty-free access for Canadian beef, pulses, grains, canola oil, processed foods and animal feed, and a large tariff-free quota for Canadian pork.

“We look forward to the upcoming visit by Ukrainian government inspectors which should allow additional Canadian pork processing plants to become eligible to export to Ukraine,” said Canadian Pork Council chair Rick Bergmann of Steinbach, Man.

He estimates the value at $30 million and $40 million.

When fully implemented, a Canada-Ukraine free trade agreement will provide duty-free access to Ukraine for an “unlimited quantity” of beef and veal, duty-free access for 20,000 tonnes of frozen pork, and duty-free access for an unlimited quantity of fresh chilled pork, said the Canadian Meat Council.


In 2014, by comparison, Canada’s meat exports to Ukraine included 25 tonnes of beef and veal products, valued at $47,000 and 2,031 tonnes of pork, valued at $4.4 million, the meat council said.

Ukraine has long been touted as a potential wheat-exporting powerhouse, but has failed to exploit that potential. Canadian machinery and technology could finally unlock that potential.