RECOMMENDATION

Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to implement the 2023 Free Trade Agreement between Canada and Ukraine”.

Short Title

Marginal note:Short title

1 This Act may be cited as the Canada–Ukraine Free Trade Agreement Implementation Act, 2023.

Interpretation

Marginal note:Definitions

2 The following definitions apply in this Act.

Agreement

Agreement means the Free Trade Agreement between Canada and Ukraine, done at Ottawa on September 22, 2023. (Accord)

Commission

Commission means the Joint Commission continued under paragraph 1 of Article 27.1 of the Agreement. (Commission)

federal law

federal law means the whole or any portion of an Act of Parliament or a regulation, order or other instrument issued, made or established in the exercise of a power conferred by or under an Act of Parliament. (texte législatif fédéral)

Minister

Minister means the Minister for International Trade. (ministre)

Marginal note:Interpretation consistent with Agreement

3 For greater certainty, this Act and any federal law that implements a provision of the Agreement or that allows the Government of Canada to meet an obligation under the Agreement is to be interpreted in a manner consistent with the Agreement.

Marginal note:Non-application of Act and Agreement to water

4 For greater certainty, nothing in this Act or the Agreement applies to natural surface or ground water in liquid, gaseous or solid state.

Marginal note:Construction

5 For greater certainty, nothing in this Act, by specific mention or omission, is to be construed to affect in any manner the right of Parliament to enact legislation that implements any provision of the Agreement or that allows the Government of Canada to meet an obligation under the Agreement.

His Majesty

Marginal note:Binding on His Majesty

6 This Act is binding on His Majesty in right of Canada.

Purpose

Marginal note:Purpose

7 The purpose of this Act is to implement the Agreement, the objectives of which, as elaborated more specifically through its provisions, are to

• (a) establish a free trade area in accordance with the Agreement;

• (b) promote, through the elimination of barriers to trade in goods and services, the expansion of reciprocal trade and the strengthening of economic relations between Canada and Ukraine in order to create opportunities for economic development;

• (c) promote conditions of fair competition affecting trade between Canada and Ukraine;

• (d) ensure a predictable commercial framework for business planning and investment;

• (e) promote high levels of environmental protection, including through effective enforcement of environmental laws, mutually supportive trade and environmental policies and practices, and strengthened environmental cooperation between Canada and Ukraine;

• (f) promote sustainable development;

• (g) protect, enhance and enforce basic workers’ rights, strengthen cooperation on labour matters and build on the respective international commitments of Canada and Ukraine on labour matters;

• (h) recognize that Indigenous Peoples in Canada and Ukraine have the right to economic development and participation in trade and to engage freely in all their traditional and other economic activities;

• (i) support the growth and development of micro, small and medium-sized enterprises by enhancing their ability to participate in and benefit from the opportunities created by the Agreement;

• (j) facilitate equal access to, and the ability to benefit from, the opportunities created by the Agreement for women and men and support the conditions for women’s full participation in domestic, regional and international trade and investment;

• (k) recognize the right of the Parties to the Agreement to preserve, develop and implement their cultural policies for the purpose of strengthening cultural diversity in accordance with the rights and obligations provided for in the Agreement;

• (l) encourage enterprises operating within Canada or Ukraine or subject to their jurisdiction to respect internationally recognized corporate social responsibility and responsible business conduct standards and principles and to pursue best practices;

• (m) promote transparency, good governance and the rule of law, while strengthening commitments to combat bribery and corruption in trade and investment; and

• (n) respect the values and principles of democracy and promote and protect human rights and fundamental freedoms.

Causes of Action

Marginal note:Causes of action under sections 9 to 15

• 8 (1) No person has any cause of action and no proceedings of any kind are to be taken, without the consent of the Attorney General of Canada, to enforce or determine any right or obligation that is claimed or arises solely under or by virtue of sections 9 to 15 or an order made under those sections.

• Marginal note:Causes of action under Agreement

  (2) Subject to Section D of Chapter 17 and Article 20.24 of the Agreement, no person has any cause of action and no proceedings of any kind are to be taken, without the consent of the Attorney General of Canada, to enforce or determine any right or obligation that is claimed or arises solely under or by virtue of the Agreement.

Implementation of the Agreement

Approval

Marginal note:Agreement approved

9 The Agreement is approved.

Administrative and Institutional Provisions

Marginal note:Canadian representative on Commission

10 The Minister is the principal representative of Canada on the Commission.

Marginal note:Payment of expenditures

11 The Government of Canada is to pay its appropriate share of the aggregate of any expenditures incurred by or on behalf of the Commission.

Panels, Committees, Subcommittees, Working Groups, Expert Groups and Other Bodies

Marginal note:Powers of Minister

• 12 (1) The Minister may

  • (a) subject to subsection (2) and paragraph (3)(a), appoint representatives of Canada to any committee, subcommittee or working group referred to in paragraph 5 of Article 27.1 of the Agreement;

  • (b) appoint a panellist in accordance with Article 28.8 of the Agreement; and

  • (c) propose candidates to serve as the chair of a panel, or select the chair, in accordance with Article 28.8 of the Agreement.

• Marginal note:Power of Minister of the Environment

  (2) The Minister of the Environment may appoint representatives of Canada to the Committee on the Environment continued under paragraph 2 of Article 13.25 of the Agreement.

• Marginal note:Powers of Minister of Labour

  (3) The Minister of Labour may

  • (a) appoint representatives of Canada to the Labour Council established under paragraph 1 of Article 14.10 of the Agreement; and

  • (b) designate a National Administrative Office in accordance with paragraph 1 of Article 14.11 of the Agreement.

Marginal note:Administrative support

13 The Minister is to designate an agency, division or branch of the Government of Canada to facilitate the operation of Chapter 28 of the Agreement and to provide administrative assistance to panels established under that Chapter.

Marginal note:Payment of costs

14 The Government of Canada is to pay the costs of or its appropriate share of the costs of

• (a) the remuneration and expenses payable to members of panels, committees, subcommittees, working groups, expert groups and other bodies, to independent experts and to the assistants of panel members; and

• (b) the general expenses incurred by panels, committees, subcommittees, working groups, expert groups and other bodies.

Orders

Marginal note:Orders — Article 28.13 of Agreement

• 15 (1) The Governor in Council may, for the purpose of suspending benefits in accordance with Article 28.13 of the Agreement, by order, do any of the following:

  • (a) suspend rights or privileges granted by Canada to Ukraine or to goods, service suppliers, investors or investments of investors of Ukraine under the Agreement or any federal law;

  • (b) modify or suspend the application of any federal law, with respect to Ukraine or to goods, service suppliers, investors or investments of investors of Ukraine;

  • (c) extend the application of any federal law to Ukraine or to goods, service suppliers, investors or investments of investors of Ukraine;

  • (d) take any other measure that the Governor in Council considers necessary.

• Marginal note:Period of order

  (2) Unless repealed, an order made under subsection (1) has effect for the period specified in the order.

Compliance with Principles and Guidelines — Canadian Companies

Marginal note:Principles and guidelines

• 15.1 (1) The Minister must ensure that Canadian companies operating in Ukraine comply with the principles and guidelines referred to in article 15.14 of the Agreement.

• Marginal note:Complaints process

  (2) The Minister must establish a process for receiving and responding to complaints of non-compliance with those principles and guidelines.

• Marginal note:Annual report

  (3) On or before January 1st of each year starting in 2025, the Minister must prepare a report that summarizes activities carried out in relation to the Minister’s obligations under this section.

• Marginal note:Tabling of report

  (4) The Minister must table a copy of the report in each House of Parliament on any of the first 30 days on which that House is sitting after the report is completed.

Related Amendments

R.S., c. C-50; 1990, c. 8, s. 21Crown Liability and Proceedings Act

16 Part 2 of the schedule to the Crown Liability and Proceedings Act is amended by striking out the following:

R.S., c. F-11Financial Administration Act

• 17 (1) Schedule VII to the Financial Administration Act is amended by striking out the following:

  • Free Trade Agreement between Canada and Ukraine, done at Kyiv on July 11, 2016.

• (2) Schedule VII to the Act is amended by adding the following in alphabetical order:

  • Free Trade Agreement between Canada and Ukraine, done at Ottawa on September 22, 2023.

R.S., c. 28 (1st Supp.)Investment Canada Act

18 The schedule to the Investment Canada Act is amended by adding, at the end of column 1, a reference to “Agreement within the meaning of section 2 of the Canada–Ukraine Free Trade Agreement Implementation Act, 2023” and a corresponding reference to “Article 17.1” in column 2.

R.S., c. 1 (2nd Supp.)Customs Act

• 19 (1) The definition CUFTA in subsection 2(1) of the Customs Act is replaced by the following:

  CUFTA

  CUFTA has the meaning assigned by the definition Agreement in section 2 of the Canada–Ukraine Free Trade Agreement Implementation Act, 2023; (ALÉCU)

• (2) Subsection 2(1) of the Act is amended by adding the following in alphabetical order:

  CUFTA 2017

  CUFTA 2017 has the meaning assigned by the definition Agreement in section 2 of the Canada–Ukraine Free Trade Agreement Implementation Act, as it reads immediately before the day on which section 39 of the Canada–Ukraine Free Trade Agreement Implementation, 2023 comes into force; (ALÉCU de 2017)

• (3) The definition CUFTA 2017 in subsection 2(1) of the Act is repealed.

• 20 (1) Subsection 42.1(1.1) of the Act is amended by adding the following after paragraph (a):

  • (a.1) a verification of origin of goods for which preferential tariff treatment under CUFTA 2017 is claimed, by requesting in writing that the customs administration of Ukraine conduct a verification and provide a written report as to whether the goods are originating within the meaning of Chapter 3 of CUFTA 2017;

• (2) Paragraph 42.1(1.1)(a.1) of the Act is repealed.

• (3) Subsection 42.1(3) of the Act is amended by adding the following after paragraph (a):

  • (a.01) in the case of CUFTA 2017, if Ukraine fails to conduct a verification or provide a written report as to whether the goods are originating;

• (4) Paragraph 42.1(3)(a.01) of the Act is repealed.

• 21 (1) Subsection 97.201(1) of the Act is amended by adding the following after paragraph (a):

  • (a.1) a written report as to whether the goods are originating within the meaning of Chapter 3 of CUFTA 2017;

• (2) Paragraph 97.201(1)(a.1) of the Act is repealed.

• 22 (1) The Act is amended by adding the following after section 169:

  Marginal note:CUFTA 2017

  169.1 The provisions of the Customs Tariff and its regulations in respect of goods that are imported from or exported to Ukraine, as they read before the day on which this section comes into force, apply in respect of any proceedings in relation to CUFTA 2017.

• (2) Section 169.1 of the Act is repealed.

• 23 (1) Column 2 of Part 1 of the schedule to the Act is amended by replacing the reference to “CUFTA” with a reference to “CUFTA or, as applicable CUFTA 2017”.

• (2) Column 2 of Part 1 of the schedule to the Act is amended by replacing the reference to “CUFTA or, as applicable CUFTA 2017” with a reference to “CUFTA”.

• 24 (1) Column 2 of Part 3 of the schedule to the Act is amended by replacing the reference to “Article 4.8 of CUFTA” with a reference to “Article 4.8 of CUFTA or, as applicable, CUFTA 2017”.

• (2) Column 2 of Part 3 of the schedule to the Act is amended by replacing the reference to “Article 4.8 of CUFTA or, as applicable, CUFTA 2017” with a reference to “Article 4.8 of CUFTA”.

• 25 (1) Column 2 of Part 4 of the schedule to the Act is amended by replacing the reference to “CUFTA” with a reference to “CUFTA or, as applicable, CUFTA 2017”.

• (2) Column 2 of Part 4 of the schedule to the Act is amended by replacing the reference to “CUFTA or, as applicable, CUFTA 2017” with a reference to “CUFTA”.

• 26 (1) Part 5 of the schedule to the Act is amended by adding, in alphabetical order, a reference to “CUFTA 2017” in column 1 and a corresponding reference to “Chapters 3 and 4” in column 2.

• (2) Part 5 of the schedule to the Act is amended by striking out, in column 1, the reference to “CUFTA 2017” and the corresponding reference to “Chapters 3 and 4” in column 2.