Harper Government Highlights Ontario’s Iconic Brands as Beneficiaries of Canada-EU Trade Agreement
Deeper trade with European Union will increase sales of iconic Canadian products, bringing jobs and long-term prosperity to hard-working Ontarians, say ministers Clement and Raitt
November 16, 2012 - The Honourable Tony Clement, President of the Treasury Board and Minister for the Federal Economic Development Initiative for Northern Ontario, and the Honourable Lisa Raitt, Minister of Labour, participated in events today in Ontario as part of a week-long series of national outreach activities featuring some of Canada’s most iconic brands and products. The two ministers highlighted some of the Ontario exports that would benefit from a Canada-EU trade agreement.
“Our government is committed to creating jobs and growing the Canadian economy,” said Minister Clement at Langford Canoe, Canada’s oldest canoe company, which is located in his riding of Parry Sound-Muskoka. “Key to these efforts is opening new markets like the EU that appreciate the iconic products and brands that Canada has to offer—products that we as Canadians are proud of.”
Exports of canoes and other pleasure craft to the EU totalled $51 million in 2011. These products, including those produced by the renowned Langford Canoe in Dwight, Ontario, currently face EU tariffs, and an ambitious Canada-EU trade agreement would give Canadian exporters to the EU duty-free access for all boats and pleasure craft.
Minister Raitt participated in an event at Tilley Endurables in Toronto, maker of the famous Tilley Hat and one of the most recognized Canadian names in durable utility wear.
“Canada is seeking an outcome that will provide new market access opportunities for hats, as well as a wide variety of apparel products,” said Minister Raitt. “Canadian exports of hats and apparel to the EU totalled about $110 million last year. The reduction of tariff barriers on these products would not only increase sales, but would also increase recognition of Canada’s high-quality products.”
“More than 60 percent of Canada’s annual income (gross domestic product) and the jobs of one in five Canadians are generated by trade,” said Minister Fast. “That is why our government is undertaking the most ambitious trade expansion plan in Canadian history, which includes a comprehensive next-generation trade agreement with the European Union. A trade agreement with the European Union is expected to bring a 20-percent boost in bilateral trade and a $12-billion annual increase to Canada’s economy. That translates to a $1,000 increase to the average Canadian family’s income, or 80,000 new jobs.”
The EU is Canada’s second-largest trading partner and the world’s largest integrated economy, with more than 500 million consumers and a GDP of over $17 trillion.
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A backgrounder detailing the benefits for Ontario of a potential Canada-EU trade agreement follows.
For further information, media representatives may contact:
Office of the Honourable Ed Fast
Minister of International Trade and Minister for the Asia-Pacific Gateway
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Backgrounder - Benefits for Ontario of a Potential Canada-EU Trade Agreement
Jobs, growth and long-term prosperity for hard-working Ontarians
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 the number of jobs currently in the city of Kingston to the Canadian economy.
Many of Ontario’s key sectors would benefit from an ambitious Canada-EU trade agreement:
- This sector employs more than 92,000 Ontarians.
- Agricultural products are a significant exporting sector for Ontario to the EU, with exports worth an average of almost $500 million a year between 2009 and 2011.
- An ambitious Canada-EU trade agreement would lock in permanent duty-free access on key Ontario interests, such as oilseeds and pulses.
- Eliminating tariff barriers would increase sales of Ontario’s world-class agricultural products in the lucrative EU market of 500 million consumers. This would directly benefit hard-working Ontarians through more jobs, higher wages and greater long-term prosperity.
- This sector employs more than 41,500 Ontarians.
- Electronics is a significant sector for Ontario, with exports to the EU averaging $1.3 billion annually between 2009 and 2011.
- Current EU tariffs on Canadian electronics average 3 percent, with peaks of 14 percent. These high tariff barriers would be eliminated under an ambitious Canada-EU trade agreement.
- Eliminating tariff barriers would increase sales in the lucrative EU market of 500 million consumers. This would create jobs, growth and long-term prosperity for Ontario’s businesses, workers and their families.
Chemicals and plastics
- This sector employs more than 87,000 Ontarians.
- The chemicals and plastics is one of Ontario’s top exporting sectors to the EU, with exports worth an average of $1.1 billion annually between 2009 and 2011.
- Current EU tariffs on chemicals and plastics average 4.9 percent. These tariff barriers would be eliminated under an ambitious Canada-EU trade agreement.
- Eliminating tariff barriers would increase sales of Ontario’s world-class chemical and plastic products in the lucrative EU market of 500 million consumers. This would directly benefit hard-working Ontarians through more jobs, higher wages and greater long-term prosperity.
- This sector employs more than 5,500 Ontarians.
- Industrial machinery is a significant exporting sector for Ontario to the EU, with exports worth an average of $533 million a year between 2009 and 2011.
- Current EU tariffs on industrial machinery average 2.1 percent, with peaks of 8 percent. These tariff barriers would be eliminated under an ambitious Canada-EU trade agreement.
- Eliminating tariff barriers would increase sales of Ontario’s world-class industrial machinery in the lucrative EU market of 500 million consumers. This would directly benefit hard-working Ontarians through more jobs, higher wages and greater long-term prosperity.
- The services sector, overall, employs more than 4.5 million Ontarians.
- The services sector is a key driver of Ontario’s economy, accounting for 76 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 Ontario sector.
- 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 from European companies in Canada totalled almost $161 billion, representing over 26 percent of total foreign investment in Canada.
- Ontario businesses currently have significant investments in the EU in a wide variety of sectors, including agriculture, automotive, financial services, renewable energy, transportation, and information and communications technology.
- Putting predictable investment rules in place and guaranteeing access to EU markets will help create a level playing field for Ontario’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 Ontarians.
- Workers in Ontario and the rest of Canada employed in fields such as engineering, architecture and technology 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 Ontario’s economy.
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