Backgrounder - Benefits for British Columbia of a Potential Canada-EU Trade Agreement

Jobs, growth and long-term prosperity for hard-working British Columbians

An ambitious trade agreement with the European Union would be of significant benefit to Canada, resulting in a 20-percent boost in bilateral trade and a $12-billion increase in Canada’s annual GDP.

That translates to an increase of $1,000 to the average Canadian family’s income, or 80,000 new Canadian jobs—which is like adding twice the number of jobs currently in the cities of Kelowna or Abbotsford-Mission to the Canadian economy.

Many of British Columbia’s key sectors would benefit from an ambitious Canada-EU trade agreement:

Wood and wood products

• This sector employs nearly 15,000 British Columbians.
• Between 2009 and 2011, British Columbia exported an annual average of $326-million worth of wood and wood products to the EU.
• B.C.’s wood exports face average tariffs of 2.2 percent, with peaks of 10 percent. These tariffs barriers would be eliminated under an ambitious Canada-EU trade agreement.
• Eliminating tariff barriers would increase sales of B.C.’s world-class wood and wood products in the lucrative EU market of 500 million consumers. This would directly benefit British Columbians through more jobs, higher wages and greater long-term prosperity.

Fish and seafood

• This sector employs nearly 5,500 British Columbians.
• Between 2009 and 2011, British Columbia exported an annual average of $55-million worth of fish and seafood products to the EU.
• The EU is the world’s largest fish and seafood market, with global imports averaging $25 billion annually between 2009 and 2011.
• Current EU tariffs on Canadian fish and seafood average 11 percent, with peaks of 25 percent. Salmon, accounting for the majority of British Columbia’s fish and seafood exports to the EU, faced an average tariff of 5.5 percent. These high tariff barriers would be eliminated under an ambitious Canada-EU trade agreement.
• Eliminating tariff barriers would increase sales of British Columbia’s world-class fish and seafood products in the lucrative EU market of 500 million consumers. This would directly benefit British Columbians through more jobs, higher wages and greater long-term prosperity.

Agriculture

• This sector employs more than 26,000 British Columbians.
• Between 2009 and 2011, British Columbia exported an annual average of $35-million worth of agricultural products to the EU.
• Tariffs on key British Columbian exports to the EU, such as fruits, vegetables and horticultural products, would be eliminated under an ambitious Canada-EU trade agreement.
• Eliminating tariff barriers would increase sales of B.C.’s world-class agricultural products in the lucrative EU market of 500 million consumers. This would directly benefit hard-working British Columbians through more jobs, higher wages and greater long-term prosperity.

Services

• This sector, overall, employs more than 1.5 million British Columbians.
• The services sector is a key driver of British Columbia’s economy, accounting for 77 percent of the province’s total GDP in 2010.
• In 2010, the EU’s services import market totalled $1.4 trillion.
• Current EU trade barriers on Canadian services are citizenship or residency requirements, lack of temporary entry rules, and ownership and investment restrictions. These trade barriers would be reduced under an ambitious Canada-EU trade agreement, directly benefiting businesses and workers in this vital B.C. sector.

Investment

• Direct investment by Canadian companies in the EU totalled almost $173 billion in 2011, representing over 25 percent of Canadian direct investment abroad. The same year, direct investment by European companies in Canada totalled almost $161 billion, representing over 26 percent of total foreign investment in Canada.
• British Columbia businesses currently have significant investments in the EU in a wide variety of sectors, including mining, financial services, professional services, renewable energy and environmental technology, transportation, and information and communication technology.
• Putting predictable investment rules in place and guaranteeing access to EU markets will help to create a level playing field for British Columbia’s investors and businesses and reduce the risks associated with investing abroad. This would lead to greater two-way investment, which would help create jobs and long-term prosperity for hard-working British Columbians.

Government procurement

• Workers in British Columbia employed in fields such as architecture, technology and marketing consultancy could benefit from greater access to the EU’s procurement market, which is worth an estimated $2.4 trillion.
• Greater access to the world’s largest procurement market would benefit workers and their families in sectors that are vital to British Columbia’s economy.