Summary#

This bill brings the 2023 Canada–Ukraine Free Trade Agreement (CUFTA) into Canadian law. It approves the Agreement, sets up how Canada will run dispute and committee work under it, and updates several federal statutes to align with the new terms. It also requires oversight of Canadian companies operating in Ukraine and replaces the 2017 CUFTA implementation law.

• Approves the 2023 CUFTA signed on September 22, 2023, and makes federal laws align with it (Approval — Agreement approved; Interpretation consistent with Agreement).
• Lets the federal Cabinet suspend trade benefits if Ukraine breaches the deal, per the Agreement’s rules (Orders — Article 28.13 of Agreement).
• Requires the trade minister to ensure Canadian companies in Ukraine follow agreed principles and to set up a complaints process and annual reporting (Compliance with Principles and Guidelines — Canadian Companies).
• Commits Canada to pay its share of costs for CUFTA committees, panels, and administration (Payment of expenditures; Payment of costs).
• Updates customs, tariffs, investment, arbitration, and trade tribunal laws to reflect the 2023 CUFTA and retire 2017-era provisions (Related Amendments).
• Takes effect on a day set by Cabinet; some transition clauses end on the sixth anniversary of that date (Coming into Force — Order in council; Sixth anniversary).

What it means for you#

• Households and consumers

  • The Act itself does not list tariff rates. It approves the Agreement and updates laws so customs and tariffs can follow the new CUFTA once in force (Approval — Agreement approved; Customs Act amendments). Price impacts are not stated. Data unavailable.

• Workers

  • The Agreement’s objectives include protecting workers’ rights and cooperation on labour (Purpose). The bill does not create new individual workplace rights you can enforce in court (Causes of Action). Job impacts are not quantified. Data unavailable.

• Exporters and importers (Canada–Ukraine trade)

  • Customs and tariff rules will be applied under the 2023 CUFTA once in force, with transitional references to the 2017 CUFTA for ongoing proceedings (Customs Act, s. 169.1; Customs Tariff amendments).
  • If a dispute arises and benefits are suspended, Canadian or Ukrainian traders could face temporary changes to market access during the suspension period (Orders — Article 28.13 of Agreement).
  • Origin verification and other customs processes are updated to reflect the new Agreement, with temporary provisions for CUFTA 2017 references that later repeal on the sixth anniversary (Customs Act amendments).

• Canadian companies operating in Ukraine

  • You must comply with the Agreement’s referenced principles and guidelines; the minister must ensure compliance and will run a complaints process about non‑compliance (Compliance with Principles and Guidelines — Canadian Companies).
  • The minister must publish an annual report on these activities starting January 1, 2025 (Compliance with Principles and Guidelines — Annual report).

• Federal suppliers and bidders (procurement)

  • The bill changes the Canadian International Trade Tribunal (CITT) framework tied to Ukraine by removing “Ukraine” from a country list and repealing several CUFTA‑2017‑specific provisions. Complaint routes and definitions under the updated Agreement change accordingly (Canadian International Trade Tribunal Act amendments). Check CITT guidance once in force.

• Civil society and individuals

  • You cannot start a court case to enforce rights that arise only from this Act or from the Agreement unless the Attorney General of Canada consents (Causes of Action).
  • Water is excluded. The Act and Agreement do not apply to natural surface or ground water in any state (Non-application of Act and Agreement to water).

• Government agencies

  • Ministers may appoint Canadian representatives to CUFTA committees and dispute panels and must provide administrative support under Chapter 28 (Panels, Committees… — Powers of Minister; Administrative support).
  • Canada must pay its share of CUFTA bodies’ costs and any panel member remuneration and expenses (Payment of expenditures; Payment of costs).

• Timing

  • The Act takes effect on a date set by Cabinet. Certain transitional clauses automatically change on the sixth anniversary of that date (Coming into Force — Order in council; Sixth anniversary).

Expenses#

Estimated net cost: Data unavailable.

• Canada must pay its share of CUFTA institutional and administrative costs; amounts are not stated in the bill (Payment of expenditures).
• Canada must pay remuneration and expenses for CUFTA panels, experts, assistants, and related general expenses; amounts depend on use and are not stated (Payment of costs).
• Departments must provide administrative support for dispute settlement and run a complaints process and annual reporting; no appropriation amounts are listed (Administrative support; Compliance with Principles and Guidelines — Canadian Companies).
• No official fiscal note is included in the text. Data unavailable.

Proponents' View#

• Modernizes the 2017 CUFTA and sets a predictable framework for trade and investment by approving the updated Agreement and aligning federal laws (Approval — Agreement approved; Interpretation consistent with Agreement).
• Supports fair competition and reduces barriers to trade in goods and services, which can expand reciprocal trade opportunities (Purpose).
• Embeds commitments on labour rights, the environment, SMEs, gender, Indigenous participation, anti‑corruption, and human rights, signaling responsible trade practices (Purpose).
• Provides clear, rules‑based dispute settlement, including panels and the ability to suspend benefits when needed to enforce compliance (Panels, Committees…; Orders — Article 28.13 of Agreement).
• Increases corporate accountability by requiring Canadian companies in Ukraine to follow agreed principles and by creating a public complaints and reporting system (Compliance with Principles and Guidelines — Canadian Companies).

Opponents' View#

• Limits private enforcement. Individuals and firms cannot sue to enforce Agreement obligations without the Attorney General’s consent, reducing direct legal recourse (Causes of Action).
• Introduces compliance oversight costs for Canadian companies operating in Ukraine due to mandatory adherence to principles, a complaints process, and annual reporting scrutiny; the bill lists no funding or guidance details (Compliance with Principles and Guidelines — Canadian Companies).
• Creates uncertainty from the power to suspend benefits by order, which could change market access conditions for traders during disputes (Orders — Article 28.13 of Agreement).
• Amends procurement complaint pathways tied to Ukraine at the CITT, which may disrupt established processes for suppliers during transition (Canadian International Trade Tribunal Act amendments).
• Fiscal exposure is open‑ended. Canada must pay its share of CUFTA bodies and panel costs, but the bill provides no cost ceilings or estimates (Payment of expenditures; Payment of costs).