Provincial and Territorial Benefits
Benefits for Nunavut of a Potential Canada-EU Trade Agreement
Jobs, growth and long-term prosperity for the hard-working people of Nunavut
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 24 times the number of jobs currently in the city of Iqaluit to the Canadian economy.
Many of Nunavut’s key sectors would benefit from an ambitious Canada-EU trade agreement:
Fish and seafood
- Between 2009 and 2011, Nunavut exported an annual average of $18,000 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 average 11 percent, with peaks of 25 percent. These high tariff barriers would be eliminated under an ambitious Canada-EU trade agreement.
- Eliminating tariff barriers would increase sales of Nunavut’s world-class fish and seafood products in the lucrative EU market of 500 million consumers. This would directly benefit the people of Nunavut through more jobs, higher wages and greater long-term prosperity.
- The services sector, overall, plays an integral role in Nunavut’s economy, accounting for 76 percent of the territory’s 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 Nunavut 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.
- Investment opportunities in Nunavut include mining and exploration, tourism and infrastructure investments.
- Putting predictable investment rules in place and guaranteeing access to EU markets will help create a level playing field for investors and businesses in Nunavut 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 the hard-working people of Nunavut.
- Workers in Nunavut 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 Nunavut’s economy.