Provincial and Territorial Benefits
Benefits for Newfoundland and Labrador of a Potential Canada-EU Trade Agreement
Jobs, growth and long-term prosperity for hard-working Newfoundlanders and Labradorians
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 income (gross domestic product).
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 six cities the size of Corner Brook to the Canadian economy.
Many of Newfoundland and Labrador’s key sectors would benefit from an ambitious Canada-EU trade agreement:
Fish and seafood
- This sector employs more than 9,000 Newfoundlanders and Labradorians.
- Between 2009 and 2011, Newfoundland and Labrador exported an annual average of $127 million worth of fish and seafood products to the EU.
- The EU is the world’s largest fish and seafood market, with a global import market averaging $25 billion annually during 2009-2011.
- Current EU tariffs on Canadian fish and seafood products average 11 percent, with peaks of 25 percent. These high tariff barriers would be eliminated under an ambitious Canada-EU trade agreement.
- Eliminated tariff barriers would increase sales of Newfoundland and Labrador’s world-class fish and seafood products in the lucrative EU market of 500 million consumers. This would directly benefit Newfoundlanders and Labradorians through more jobs, higher wages and greater long-term prosperity.
- The services sector, overall, employs more than 160,000 Newfoundlanders and Labradorians.
- The overall services sector accounted for 59 percent of the province’s economy 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 Newfoundland and Labrador 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 by European companies in Canada totalled almost $161 billion, representing over 26 percent of total foreign investment in Canada.
- Newfoundland and Labrador businesses currently have significant investments in the EU in sectors such as agriculture, and ocean and petroleum technologies.
- Putting predictable investment rules in place and guaranteeing access to EU markets will help create a level playing field for Newfoundland and Labrador’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 Newfoundlanders and Labradorians.
- Workers in Newfoundland and Labrador 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 Newfoundland and Labrador’s economy.