Opportunities and Benefits of CETA for Canada’s Infrastructure Exporters
Why export to the EU?
- Significant Market: The EU’s annual infrastructure outlays are estimated at $400 Billion*, larger than that of the United States and second only to China in size.*Source: McKinsey Global Institute 2011
- Real opportunities now and in the future: The EU has earmarked hundreds of billions of Euros for transportation, energy, and broadband projects taking place by 2020.
How will CETA benefit Canadian infrastructure sector exporters?
- When CETA is provisionally applied, EU tariffs will be eliminated on all originating products used in building and maintaining infrastructure such as: construction materials, power generating machinery, electrical equipment, rail products, infrastructure related ICT products and more.
- Canadian infrastructure companies will also benefit from improved labour mobility provisions and expanded access to EU government procurement opportunities.
|Current Tariff||Tariff upon CETA’s|
|* Rules of origin apply; not an exhaustive list|
|Power generation and distribution equipment||Up to 14%||0%|
|Concrete products (e.g. precast concrete, concrete sheets and tiles, blocks and bricks)||6.5%||0%|
|Copper pipes and tubes||4.8%||0%|
|Optical fibers, optical fiber bundles and cables||2.9%||0%|
|Prefabricated steel buildings||2.7%||0%|
- 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 many EU Member States.
- This may include entry without the requirement of a work permit for 90 days in any six-month period for any of the following activities: meetings or consultations, research and design, marketing research, training seminars, trade fairs and exhibitions, sales, purchasing, after-sales or after-lease service, commercial transactions, translation and interpretation (some conditions apply in some Members States).
- 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), European public utilities in the areas of gas, electricity, heat and water distribution as well as entities responsible for urban transit and railways. This includes procurement above specified value thresholds of professional services such as architecture and engineering as well as all construction services.
Regulatory cooperation and conformity assessment
- The Protocol on the Mutual Acceptance of the Results of Conformity Assessment will provide a mechanism to facilitate the acceptance by Canada and the EU of test results and products certification from the other party. These provisions could reduce costs and marketing delays for Canadian producers.
- Construction equipment, ATEX equipment, machinery, electronic equipment, radio and telecommunications terminal equipment and measuring instruments that may be relevant to the infrastructure sector are covered by the Protocol.
|Top 5 suppliers of architectural, engineering and other technical services to the EU||% of Import Market Share|
|Source: Eurostat (2015)|
Once CETA is provisionally applied, Canadian exporters of infrastructure 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.
Non-CETA related factors to keep in mind when exporting Infrastructure products and services to the EU
- Prior to exporting to the EU, Canadian companies should be familiar with the relevant EU and national certification standards, as well as local requirements (e.g. labelling), for their products.
For more detail on how CETA benefits your company, contact a Trade Commissioner today.
- Date Modified: