Canada and the European Union (EU) have completed the ninth round of negotiations toward a Comprehensive Economic and Trade Agreement (CETA). Canada and the EU are committed to building on the success of negotiations thus far, where significant progress has been made across the board, including the areas of goods, services, investment, government procurement and many others. The negotiating text is now well-advanced, with many chapters closed or parked pending further development, and issues in the remaining chapters narrowed down to key differences where solutions are now being actively explored.
The parties are committed to resisting protectionist pressures in challenging economic times, and are seeking to achieve an ambitious outcome across all negotiating areas. The Government of Canada has made the CETA negotiations a priority in its international trade agenda and negotiators continue to move the negotiations forward as quickly as possible.
Canada and the EU have a long history of economic cooperation. Composed of 27 Member States with a total population of over 500 million and a GDP of nearly $16.8 trillion in 2010, the EU is the world’s largest single common market, foreign investor and trader. As an integrated block, the EU represents Canada's second largest trading partner in goods and services. In 2010, Canadian goods and services exports to the EU totalled $49.1 billion, and imports from the EU amounted to $55.2 billion.
According to Statistics Canada, the EU is also the second largest source of foreign direct investment (FDI) in Canada, with the stock of FDI amounting to $148.7 billion at the end of 2010. In 2010, the stock of Canada's direct investment in the EU totalled $145.7 billion, and the EU is the destination of 23.6% of Canadian direct investment abroad. According to Eurostat, the EU identified Canada as its third largest destination and its fourth largest source of FDI in 2009. Bilateral economic relations with the EU are very important to Canada, and this economic relationship is a high priority for the Government of Canada.
On October 16, 2008, Canada and the EU publicly released a Joint Study on Assessing the Costs and Benefits of a Closer EU-Canada Economic Partnership. The study shows there are important benefits for both sides to pursuing a closer economic partnership. An agreement could benefit many sectors of the Canadian economy, including aerospace, chemicals, plastics, aluminum, wood products, fish and seafood, automotive vehicles and parts, agricultural products, transportation, financial services, renewable energy, information and communication technologies, engineering and computer services, among others. The study also shows potential for enhancing the relationship in areas such as investment, labour mobility, regulatory cooperation, environment, and science and technology.
On March 5, 2009, Canada and the EU publicly released the Canada-European Union Joint Report: Towards a Comprehensive Economic Agreement. The Joint Report outlines a broad and ambitious negotiating agenda, which includes: trade in goods and services; investment; government procurement; regulatory cooperation; intellectual property; temporary entry of business persons; competition policy and other related matters; labour; and environment (See News Release - March 5, 2009).
At the Canada-EU Summit on May 6, 2009, in Prague, Czech Republic, Leaders announced the launch of negotiations toward a Comprehensive Economic and Trade Agreement (CETA).
The Government of Canada appreciates the input of all Canadians who have contributed to the consultative process to date. Consultations are ongoing and will continue throughout the negotiations. Canadians may make submissions on any area of the negotiations at any time through the departmental contact point below.
All views are taken into account as the CETA negotiations proceed and in the development of Canada's trade agenda more broadly.
Trade Negotiations II Division (TPW)
Foreign Affairs and International Trade Canada
Lester B. Pearson Building
125 promenade Sussex Drive
Ottawa, Ontario, K1A 0G2
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