Mr. Speaker, I will be splitting my time with my esteemed colleague from the beautiful Lac-Saint-Louis.
I am thankful for the opportunity to speak today on the topic of the Canada-Ukraine free trade agreement and the benefits it would provide to Canadians and Ukrainians. I am proud to speak in support of this free trade agreement on behalf of the riding of Davenport.
In my riding of Davenport, believe it or not, there used to be a fairly significant Ukrainian community centred around the Ukrainian school and two churches. Most of the Ukrainians have now moved away to Etobicoke or Mississauga, but the churches, the school, and the memories still remain. The school was called Saint Josaphat's. I used to attend it in grade school, but, sadly, it is now closed. My father was Ukrainian, which is where I got the name Dzerowicz, and my mother is Mexican. I feel very blessed and lucky to live in a country where I can be both a proud Mexican Canadian and a proud Ukrainian Canadian.
Today, I stand in my Ukrainian shirt as a proud Ukrainian Canadian to talk about something I am so excited about, the Canada-Ukraine free trade agreement. It is a blessing for me to be able to strongly support this agreement. I believe that strong economic ties will be mutually beneficial for both countries, as well as in so many other ways, including helping Ukraine continue to strengthen its financial systems, develop its economy, strengthen its civil society, and combat things like corruption that have plagued Ukrainian society for far too long.
What is the Canada-Ukraine free trade agreement? It is a modern, high-standard agreement that includes chapters in a breadth of areas, including trade facilitation, government procurement, intellectual property, competition policy, transparency, and anti-corruption. Once fully implemented, this agreement would not only support Canadian and Ukrainian businesses through preferential market access but also deepen trade linkages, further strengthen Canada's bilateral relationship with Ukraine, enhance co-operation, provide for increased transparency in regulatory matters, and help reduce transaction costs for businesses.
As in all of Canada's free trade agreements, the cornerstone of the Canada-Ukraine free trade agreement is new and enhanced market access for Canadian-produced and manufactured goods. Once the agreement is fully implemented, 99.9% of Canada's current exports will be eligible to enter Ukraine duty free. This would make Canadian goods more competitive in the Ukrainian market. Importantly, it would put our exporters on a level footing with European companies who are already benefiting from the EU's free trade agreement with Ukraine, and lead to new opportunities for Canadian business. It would also put Canadian exporters at a decided advantage relative to most of the rest of the world, which is not lucky enough to have an free trade agreement with Ukraine.
Let me elaborate on this point a little further. On the first day the Canada-Ukraine free trade agreement enters into force, Ukraine would eliminate tariffs on approximately 86% of current Canadian exports to Ukraine. This means that Canadian exporters will see a huge immediate benefit from this agreement. The balance of Ukraine's tariff reductions and eliminations would be phased in over periods of up to seven years.
Speaking of specific products that would benefit, the Canada-Ukraine free trade agreement would eliminate tariffs on all industrial products and the vast majority of agricultural exports to Ukraine. For example, Ukraine would eliminate tariffs on industrial machinery, which currently faces tariffs of up to 10%, as well as plastic articles and cosmetics, which currently face tariffs of up 6.5%. In terms of agriculture, this agreement would eliminate tariffs of up to 20% on fish and seafood products, including on caviar substitutes, which would be duty free on the first day the Canada-Ukraine free trade agreement enters into force.
Alongside Canada's fish, seafood, and industrial goods producers, Canada's leading agricultural producers would also benefit from the Canada-Ukraine free trade agreement. I do not have time to go into all of the examples in all of the agricultural areas that would benefit from this agreement, but once this agreement is fully implemented, tariffs of up to 30% on key Canadian agricultural goods would be eliminated. This would provide Canadian agricultural producers with the same market access opportunities as their European counterparts, and be an advantage over most other competitors.
I have spoken at length about the goods market access benefits of the Canada-Ukraine free trade agreement, so let me now turn to other ways that the agreement would help Ukraine. Not only would it help its economy tackle some of the issues that it has been trying to reform, such as corruption, but it would also help it to build its economy and financial sector, with a huge emphasis on small and medium-sized businesses.
Canada has taken a comprehensive approach to economic assistance that supports the stabilization, reform, and growth of the Ukrainian economy. Since January 2014, Canada has committed over $543 million in additional assistance in support of stabilization, reform, and growth. This includes $400 million in the form of a low-interest loan to help stabilize Ukraine’s economy during the implementation of the democratic and economic reforms. It also includes $143 million in bilateral development assistance to support economic reform and economic growth in Ukraine.
Backed by the private sector, our support for economic reform aims to promote more inclusive growth, investment, and job creation in order to reduce poverty. Our support for economic growth aims to bolster local economic development and make small and medium-sized enterprises, or SMEs, more competitive.
Canada sent more than 65 experts to provide specific expertise in the short term and sectorial support in the long term in crucial areas such as: fighting corruption by hiring and training lawyers at the national anti-corruption bureau; assisting in restructuring the finance minister's office; and assisting in trade by supporting the design and implementation of an export development office.
Canada's assistance is consistent with Canadian objectives for the free trade agreement with Ukraine, namely fostering economic opportunity, both in Ukraine and in Canada, and raising the standard of living for our citizens.
As demonstrated around the world, trade is often a key driver of economic development and helps all trade partners generate absolute gains. Canada is committed to providing practical assistance to help Ukraine benefit from this free trade agreement with Canada. This initiative aims to strengthen the ability of Ukrainian SMEs, especially SMEs owned and operated by women, to export and attract Canadian investments.
Small businesses have made a huge contribution to job creation and economic growth in Ukraine. They are able to adapt quickly to changing economic conditions, including for example new business opportunities with Canada. Increasing their participation in trade, their ability to attract foreign investments and comply with international standards, and their productivity will help foster inclusive and sustainable economic growth in that country.
We are confident that the Canada-Ukraine trade and investment support project will provide the technical assistance needed by the selected SMEs to comply with global standards and better take advantage of the opportunities offered by the Canada-Ukraine free trade agreement, which will benefit consumers and businesses in Canada and Ukraine.
Investment and competitiveness lead to economic growth, and equitable and sustainable economic growth allow Ukrainians and Canadians to take advantage of the benefits of trade and a strengthened bilateral relationship between the two countries.
I strongly encourage every member of the House to support Bill C-31 as well as the ratification of the Canada-Ukraine free trade agreement when the time comes.
I urge all hon. members to support the swift passage of Bill C-31, which will allow the government to move forward with the implementation of the Canada-Ukraine free trade agreement and allow Canadians to start benefiting from this agreement.