Opportunities and Benefits of CETA for Canada’s Forestry Sector
Why export to the EU?
- Significant market: The world’s third largest importer of forest products – $48 billion in 2016. The EU accounted for 14% of global forest product imports in 2016.
- Canada’s advantage includes areas where EU demand is strong. Key exports from Canada, such as wood pellets, sawn/sliced coniferous wood, chemical wood pulp of coniferous wood, and seat components, have strong demand in the EU.
How will CETA benefit Canadian forestry exporters?
- While most Canadian forest products already enter the EU duty-free, upon CETA’s provisional application, all Canadian forestry products will enjoy duty-free, quota-free market access to the EU. Current EU tariffs for forest products range from 2% to 10%.
- Canadian companies can also benefit from provisions in CETA related to regulatory cooperation, government procurement, temporary entry, and trade in services.
- Canada will have a preferential trade advantage with the EU that many competitors won’t have.
|Product||Current Tariff||Tariff upon CETA’s |
|Components of wooden seats||2.7%||0%|
|Plywood||7 to 10%||0%|
|Oriented strand board||7%||0%|
Bilateral Dialogue on Forest Products
- A Bilateral Dialogue on Forest Products will enhance Canada’s ability to influence the development of EU measures, reduce potential negative impacts of EU measures on Canadian exports, and help ensure continued access for Canadian forest products to the EU.
- This provides Canada with a unique window into the regulatory development process in the EU. Canada will be able to raise industry concerns with proposed regulations at an early stage.
Sanitary and phytosanitary measures joint management committee
- A new Sanitary and Phytosanitary Measures Joint Management Committee will facilitate discussions between Canadian and EU experts and provide a venue for experts to resolve issues impeding trade before they become major problems.
- CETA will establish a framework for cooperation on the full scope of animal-health, plant-health, and food-safety provisions.
Opportunities in government procurement
- Under CETA, Canada will gain new access at the sub-central level (regions and municipalities) to procurement by local contracting authorities, bodies governed by public law (e.g. hospitals, schools, academic institutions), as well as utilities.
- The EU will be required to ensure interested suppliers have all the information necessary to decide whether to pursue a procurement opportunity, including all the bid documents, technical specifications, evaluation criteria, etc.
|Top 5 Suppliers of Forest Products to the EU||% of Import Market Share|
|Source: Eurostat (2016)|
Once CETA is provisionally applied, Canadian exporters of forest products and services will enjoy the advantages created from the agreement over competitors based in countries that do not have a preferential trade agreement in force with the EU.
Benefits for Canadian service exporters in the forestry sector
CETA provisions will make it easier for short-term business visitors, intra-company transferees, investors, contract service suppliers, and independent professionals to conduct business in the EU.
Trade in services
- CETA will establish greater transparency in the EU Services market, resulting in better, more secure and predictable market access in areas of interest to Canada, such as professional services, environmental services, and related scientific and technical consulting services.
- Canadian service suppliers and firms will be on equal footing with their EU competitors.
For more detail on how CETA benefits your company, contact a Trade Commissioner today.
- Date Modified: