Thank you, Madam Chair.
Having been privileged to be present at the July 2016 signing of the Canada-Ukraine Free Trade Agreement in Kyiv, and after having earlier followed for several years the progress of the CUFTA negotiations in my capacity as the Ukrainian Canadian Congress’s representative on the Canada-Ukraine advisory council, I am happy to share some of my thoughts on the two motions being put forward in relation to the study on the modernization of the Canada-Ukraine Free Trade Agreement.
First, I would like to say that as a proud Canadian of Ukrainian descent who has always been concerned about the fate of his ancestral homeland, I was thrilled to see Canada take steps to expand its trade relations with Ukraine by opening up sectors in both economies to a freer flow of goods and services. Canada has been a stalwart friend of Ukraine since it achieved independence in 1991, committing millions of dollars and extensive human resources to myriad projects providing invaluable practical support for Ukraine and to facilitate the development of its democratic institutions and a free market economy.
While all of the aid provided by Canada over the years has been important and hugely influential, notwithstanding challenges and setbacks met along the way, particularly in the realm of combatting corruption, the fostering of improved trade relations with the negotiation of CUFTA has been especially significant for three reasons. First, it recognizes that helping Ukraine to achieve greater prosperity is critical for its long-term stability, which in turn is essential for maintaining regional geopolitical stability. Second, it contributes to Ukraine’s further integration, culturally and economically, into the family of western nations. Third, because CUFTA serves as a symbolic vote of confidence in Ukraine’s future by laying the groundwork for continued engagement, it sends a strong signal to Putin’s Russia and the world at large that Ukraine “is, was, and always will be”, to refute a notorious Russian chauvinist formulation from tsarist times that seems to have acquired new currency in Moscow.
Some five years after CUFTA first came into effect, it makes sense that it is time to review the original agreement with the aim of possibly updating its scope and some of its provisions. Changes happen quickly in the modern world, and they have been especially accelerated in Ukraine since the 2014 Euromaidan, or the Revolution of Dignity, initiated a generational change in Ukraine’s political establishment. Although the modernization initiative was launched in advance of the 2022 Russian invasion that has wreaked havoc on Ukraine, it is nevertheless useful to examine the impact that CUFTA has had so far and to identify possible options for improving trade with Ukraine, which statistically remains relatively modest.
Assuming the Ukrainian side’s willingness to participate in a CUFTA modernization process, I think it is important for discussions to proceed, despite the turmoil that has been unleashed by Russia’s unprovoked military assault and its large-scale violation of Ukraine’s territorial integrity. The business of governing Ukraine cannot be allowed to stop completely, lest Russia be seen as making Ukraine look ungovernable with its current authorities. Obviously, the widespread destruction wrought by Russian forces on Ukraine’s infrastructure and the brutal toll being exacted on Ukraine’s civilian population and armed forces will pose enormous difficulties for any short-term implementation of a modernized trade agreement. Nevertheless, it is critical at this juncture to show confidence in Ukraine’s ability to withstand Russia's aggression and to be prepared for the time when Ukraine emerges from this dark chapter in its history.
In terms of expanding the study to include the examination of possible economic repercussions that the increased sanctions on Russia will have for countries standing in solidarity with Ukraine, it follows that improving trade with allies of Ukraine could help to mitigate some of the collateral damage caused by the punitive measures being directed at the Kremlin. At the same time, improving trade with Ukraine’s friends would not only benefit Canadian exports abroad by expanding our trade relations and opportunities, but also help to draw western allies closer together at a time of growing crisis in the international order.
Finally, knowing how long it can take to reach agreement on complex issues related to trade, undertaking a study in the present circumstances is a constructive first step toward creating the conditions for addressing what lies ahead in what are sure to be major changes in the landscape of international relations. I therefore support both resolutions adopted by the standing committee and look forward to learning the results of the study to be undertaken.
I will have other remarks, of course, in the discussion that is to follow. Thank you.