Boost your bottom line
Canadian producers, manufacturers and exporters will be able to export to the EU like never before, thanks to the Canada-European Union Comprehensive Economic and Trade Agreement (CETA).
Trade in goods
Currently, only about 25 percent of EU tariff lines on which Canadian goods are exported enter the EU duty-free. On day one of CETA’s entry into force, 98 percent of EU tariff lines will be duty-free for goods that originate in Canada. Another 1 percent will be eliminated over a period of up to seven years. Once CETA is fully implemented, 99 percent of EU tariff lines will be duty-free.
That means tangible and significant opportunities in the EU market.
Canadian goods that face tariffs – on everything from machinery to maple syrup – will become more competitive in the EU market, giving Canadian exporters an advantage over other exporters still facing EU tariffs. It will also allow Canadians to expand or create new markets for their goods in the EU.
Here’s more good news:
Customs and trade facilitation
Cost savings may also be achieved through CETA commitments on customs and trade facilitation, which are aimed at reducing processing times at the border and making the movement of goods cheaper, faster, more predictable and efficient. This includes providing access to advance rulings on the origin or tariff classification of products, the automation of border procedures where possible, and an impartial and transparent system for addressing complaints about customs rulings and decisions.
CETA is the first Canadian bilateral trade agreement with a stand-alone chapter on regulatory cooperation. CETA will establish a Regulatory Cooperation Forum to discuss regulatory policy issues of mutual interest and develop bilateral cooperation activities. By fostering cooperation earlier in the regulatory process, the Forum is expected to enhance information sharing between Canadian and EU regulators, facilitate the development of more compatible regulatory measures, resulting in fewer barriers to trade, and making it easier for Canadians to do business in the EU. For example, a Canadian company, working through the Regulatory Cooperation Forum, will be able to request information at an early stage regarding new EU regulations in development, and provide comments and recommendations on how such regulations should be developed in order to prevent and eliminate unnecessary barriers to trade.
Another unique feature of CETA is the Protocol on Conformity Assessment, which is designed to allow Canadian producers in a number of sectors to have their products tested and certified for the EU market right here in Canada. This protocol is expected to reduce testing and certification costs and associated delays for manufacturers. Canada and the EU are also committed to continuing discussions with a view to adding new products in the future.
Trade in services
The Canada-European Union Comprehensive Economic and Trade Agreement (CETA) gives Canadian exporters of services the best market access the EU has ever granted to any of its free trade agreement partners.
The EU is the largest importer of services in the world. In 2015 alone, the EU imported $936 billion in services. It imported $16.5 billion from Canada.
Management, financial, and ICT services are among the EU’s top services imports, and are also among Canada’s top services exports to the EU. Others such as engineering and architectural services and R&D have been other major Canadian exports to the EU. The EU is also the world’s largest importer of architectural, engineering and other technical services.
Once CETA enters into force, Canadian services exporters will be treated the same way as those from the EU (with the exception of certain reservations for existing and future policy measures). Canadian services exporters will enjoy better predictability and transparency in a large number of service sectors of interest to Canada, including architectural, engineering, and R&D services. Any future regulatory or legal changes which make it easier for Canadian service suppliers to access the EU market will automatically be locked in under CETA, and therefore cannot subsequently be made more restrictive. The EU will also treat Canadian service suppliers no less favourably than it treats service suppliers from its existing or future free trade agreement partners
CETA’s chapter on temporary entry addresses administrative requirements at the border such as labour market tests or other numerical limitations that can impose time delays and administrative costs on prospective business entrants to Canada or the EU. CETA provisions will increase transparency and predictability for key personnel, including intra-company transferees and investors, contract service suppliers and independent professionals (including a broad coverage of professionals and limited coverage of technologists), and business visitors to do business in the EU. A large number of EU Members States have improved their commitments for Canadian professionals such as architects and computer analysts, short-term business visitors, investors and technologists compared to the level of access granted by the EU to its recent trading partners.
Recognition of Professional Qualifications
CETA establishes a streamlined process for the recognition of foreign qualifications in certain sectors, and a detailed framework through which regulators or professional organizations may negotiate mutual recognition agreements for other professions.
Under CETA, Canada will gain new access to opportunities in EU regions and municipalities. That means access to procurement by local contracting authorities, bodies governed by public law, public utilities in the areas of gas, electricity, heat and water distribution as well as entities responsible for urban transit and railways throughout the EU. This includes procurement above specified value thresholds of professional services such as architecture and engineering, most goods as well as all construction services. Canadian suppliers already enjoy access to procurement opportunities at the EU, national and sub-national levels through the revised WTO Agreement on Government Procurement.
Get all the details about CETA here
- Date Modified: