Opportunities and Benefits of CETA for Canada’s ICT Exporters
Why export to the EU?
- Significant Market: The EU is the world’s largest importer of telecommunications, computer, and information services and the 4th largest importer of information and communications technology (ICT) products, with imports totaling $94 billion and $311 billion respectively.
- Realizable Opportunities: The EU is Canada’s second largest ICT export market, with opportunities for further growth.
How does CETA benefit Canadian ICT exporters?
- All EU tariffs on Canadian ICT products have been eliminated.
- Canadian ICT service providers are on equal footing with their EU competitors and receive better treatment than most of their non-EU competitors.
- Canadian ICT companies also benefit from improved labour mobility provisions, expanded access to EU government procurement opportunities, and the eligibility to test products for European conformity in Canadian facilities.
|Pre-CETA Tariff||Under CETA|
|Television cameras, digital cameras & video camera recorders||Up to 14%||0%|
|Printers, photocopiers & facsimile machines||Up to 6%||0%|
|Parts for radio transmission||Up to 5%||0%|
|Solid-state storage devices||Up to 3.5%||0%|
|Antennas and antenna reflectors and parts||3.6% to 5%||0%|
|Parts of electric sound or visual signalling apparatus||Up to 2.2%||0%|
|Radio navigational aid apparatus||3.7%||0%|
|Radio remote control apparatus||3.7%||0%|
- CETA provisions make it easier for short-term business visitors, intra-company transferees, investors, contract service suppliers, and independent professionals to conduct business in many EU Member States.
- This may include entry without the requirement of a work permit for 90 days in any six-month period for any of the following activities: meetings or consultations, research and design, marketing research, training seminars, trade fairs and exhibitions, sales, purchasing, after-sales or after-lease service, commercial transactions, translation and interpretation (conditions apply in some Members States).
- Under CETA, Canada gains new access at the sub-central level (regions and municipalities), to procurement by local contracting authorities, as well as bodies governed by public law (e.g. hospitals, schools, academic institutions).
- CETA’s government procurement provisions cover a broad range of ICT services, including data processing, software implementation, hardware installation, and others.
Regulatory cooperation and conformity assessment
- The Protocol on the Mutual Acceptance of the Results of Conformity Assessment provides a mechanism to facilitate the acceptance by Canada and the EU of test results and products certification from the other party. These provisions could reduce costs and marketing delays for Canadian producers.
- Electronic equipment, radio and telecommunications terminal equipment, measuring instruments, and certain machinery that may be relevant to the ICT sector are covered by the Protocol.
Non-CETA related factors to keep in mind when exporting ICT products to the EU
- Prior to exporting to the EU, Canadian companies should be familiar with the relevant EU and national certification standards, as well as local requirements, for their products.
|Top 5 Suppliers of ICT Products to the EU||% of Import Market Share|
Source: Eurostat (2016)
Under CETA, Canadian exporters of ICT products and services will enjoy the advantages created from the agreement over competitors that do not have a preferential trade agreement in force with the EU.
For more detail on how CETA benefits your company, contact a Trade Commissioner today.
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