Mr. Chair, I wish to add my voice to those who have expressed their deep concern about recent developments in Ukraine. I also wish to express my deep sorrow for the loss of lives and for the people who made the ultimate sacrifice for freedom and democracy in Ukraine.
My concern is compounded by the current economic situation in that country, a situation that was aggravated by former president Yanukovych's shunning of the European Union and the west and his disregard of the collective will of the country's citizens.
The government and the people of Canada are determined to assist to the greatest extent possible in the development of Ukraine's economy. This is for the betterment of Ukrainians' standard of living, the diversification of economic choice for its consumers, and the entrenchment of those freedoms that are derived from a rules-based economic system, absent the constraints of corruption and inadequate governance.
The current economic climate in Ukraine is very troubled. In its most recent report, the World Bank forecast 0% growth for Ukraine in 2013, citing a weak global environment and delays in domestic policy adjustments, which it notes has led to widening and unsustainable macroeconomic imbalances.
The bank cited high fiscal debt levels and the need to adopt a flexible exchange rate policy as much-needed reforms. It also cited the need to address structural adjustments, including the imbalance between what Ukraine pays and charges for its gas and heating.
The IMF has characterized Ukraine as off track. Ukraine faces worsening liquidity conditions, a structurally weak banking sector, and difficult access to long-term funding for business.
The Ukrainian government's privatization program has also generated concern, as many believe it will ultimately serve to benefit Ukraine's oligarchs. This outrage over the level of corruption and graft in Ukraine is part of the reason people are out on the streets.
An association agreement and deep and comprehensive free trade area with the EU could, in spite of the possibility of some short-term economic shocks, put Ukraine on the path to economic stability and prosperity. However, the Yanukovych government rejected that opportunity and fell back on old habits, choosing to rely instead on an outdated economic model backed by unreliable partners.
Canada has always striven for a positive and mutually beneficial trading relationship with Ukraine, with private sector organizations such as the Canada-Ukraine Chamber of Commerce playing a key role in expanding the business-to-business commercial relationship.
In 2013, bilateral trade increased by nearly 3%, reaching more than $322 million. Canada's merchandise exports totalled approximately $210 million, about 40% more than in 2012. Canada's imports from Ukraine totalled about $112 million in 2013, about 32% less than in 2012.
In view of political developments in Ukraine, the EDC has recently changed its country position from highly restricted to currently under review.
Despite Ukraine's challenging foreign investment climate, Canadian companies are seeking investments in the country's strategic sectors: agriculture, energy and mining, and niche opportunities in clean technology and renewable energy.
However, these companies need predictability and transparency to make effective business decisions, and that is why Canada is supportive of reforms in Ukraine that aim to reduce corruption and improve competitiveness and investor protection.
We are hopeful that the change in government in Ukraine will spur on much-needed economic reform and will represent a turning point that leads to a strengthened bilateral commercial relationship.
Now is the time for the Canadian public to redouble its determination to help the people of Ukraine reach their aspirations. Our efforts must work to leverage development programming to advance the mutual trade and economic interests of Ukraine and Canada and to help Ukraine build a transparent, rules-based, globally competitive economy.