Opportunities and Benefits of CETA for Canada’s Automotive Exporters

Why export to the EU?

How will CETA benefit Canadian automotive sector exporters?

At a glance: EU tariff elimination under CETA
 Current EU tariffEU tariff upon CETA’s provisional application
Auto partsup to 4.5%0%
Road tractors for semi-trailersup to 16%0%
Other road tractorsup to 7%0%
Fire-fighting vehiclesup to 3.7%0%
Tanksup to 1.7%0%
Chassisup to 19%0%
At a glance: EU tariff elimination under CETA
 Current EU tariffPhase out periodEU tariff after phase out period
Light motor vehicles for the transport of goodsup to 22%3 years0%
Motor vehicles for > 10 personsup to 16%5 years0%
Motor vehicles for the transport of passengersup to 10%7 years0%

Rules of origin

Labour mobility

Government procurement

Non-CETA related factors to keep in mind when exporting automotive products to the EU

Top 5 Suppliers of Automotive Products to the EU% of Import Market Share
Source: Eurostat (2016)
South Korea10.5%
Canada (18th largest)0.6%

Once CETA is provisionally applied, Canadian exporters of automotive products and services will enjoy the advantages created by the agreement over competitors based in countries that do not have a preferential trade agreement in force with the EU.

For more detail on how CETA benefits your company, contact a Trade Commissioner today.

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