Thank you.
Distinguished chair, honourable members of Parliament and members of the committee, it is my honour to be with you today to talk about the importance of the modernized free trade agreement between Ukraine and Canada.
This agreement is more than just a trade agreement. It is a testament to the deepening of our bilateral relations. It is a symbol of Canada's economic support to Ukraine, and Ukraine's economic resistance amid unprovoked and unjustified Russian aggression against Ukraine.
The negotiations to modernize the free trade agreement started in January 2022, just a month before the Russian full-scale invasion started. That was the time when Russia had already started to build their troops near Ukrainian borders. Since then, the negotiation team has been working around the clock despite missile attacks and power disruptions, and sometimes from the bomb shelters during bombardment. This underscores our unwavering commitment to bolster our economic ties and lay the groundwork for Ukrainian reconstruction and Canadian companies to participate in Ukrainian reconstruction.
The Russian war against Ukraine has already caused damage to the Ukrainian economy of over $411 billion, according to the latest estimation of the World Bank. Unfortunately, this figure is growing every day. Sectors like infrastructure, energy, agriculture and social services suffer the most. Infrastructure has been decimated, energy facilities have been targeted and bridges and roads have been destroyed, with entire cities and villages left in ruins.
The rebuilding of Ukraine will represent one of the most substantial reconstruction and modernization efforts on the European continent in the years to come. Ukraine's approach to rebuilding can be summarized as “building better”. Ukraine's rebuilding will be possible with the participation of international business. The modernized free trade agreement with Canada paves the way for Canadian companies to participate in Ukraine's rebuilding.
Ukraine needs Canadian technology, Canadian innovation and Canadian equipment to rebuild many of the sectors in our economy. Energy, agriculture, mining, IT and many more are those sectors where Ukraine and Canada have already started to build close business ties. The modernized CUFTA provides a crucial framework for this co-operation to prosper. In fact, some of the long-term agreements, including the agreements in the nuclear sector, between Canadian and Ukrainian companies were signed during the war and will start to be implemented in January next year. The newly added chapter with the modernized CUFTA introduced essential provisions for investment protection, laying the groundwork for a sustainable regulatory environment for investors. This is very important for Ukraine and for Canadian companies.
This stability and security will serve as a catalyst for increased investment and economic co-operation, which will create jobs in both countries. Furthermore, the modernized CUFTA expands our collaboration in the digital trade sphere. The dedicated chapter on digital trade underscores our commitment to fostering closer relations between companies in this sector. It serves as another example of the significant potential for the growth of business ties between Canada and Ukraine.
In conclusion, the modernized CUFTA is not just a support to Ukraine. It is a mutually beneficial agreement to support the economy and create additional jobs in both countries. It symbolizes the enduring strength of our partnership. By working together, we can create a stronger and more prosperous Ukraine and provide new avenues for Canadian businesses to thrive.
Thank you.