Canada Extends Tariff-Free Order for Ukraine, Imposes Strict Access Measures on Sheltered Farm Sectors

Canada has made the decision to extend tariff-free access for the majority of Ukrainian exports for an additional year in an effort to support Ukraine amid its ongoing conflict with Russia. But because they are protected under the country's supply-management system, imports of dairy, poultry, and eggs are now subject to more stringent regulations.

Finance Minister Chrystia Freeland announced that the temporary measure, which began a year ago, will continue to provide tariff relief for Ukrainian goods not covered by the countries' existing free trade agreement. This decision was made to assist Kyiv in its defense against Russia's aggression.

The deadline for the additional trade access was set to expire on Friday, and the Canadian government's choice to extend it was seen as a crucial test of Canada's unwavering support for Ukraine.

Nevertheless, Canadian poultry and egg farmers, as well as processors, expressed concerns about the negative impact of increased Ukrainian imports on their ability to manage their own production and ensure food safety. They cited concerns about the state of Ukrainian infrastructure and its potential impact on food quality.

Prior to the outbreak of the full-scale war, Ukraine held the position of the sixth-largest chicken meat exporter, according to data from the U.S. Department of Agriculture. However, the conflict has had a significant impact on Ukraine's agricultural sector.

Under Canada's supply-management system, domestic farmers are subject to production limits and minimal import competition through quotas.

Finance Minister Freeland clarified that while Canada would continue to permit tariff-free shipments of eggs, poultry, and dairy products from Ukraine within the limits defined by the World Trade Organization, additional duties would be imposed on shipments exceeding those quotas.