Opportunities and Benefits of CETA for Canada’s Medical Device Exporters
Why export to the EU?
- Significant Market: The EU is the world’s second largest importer of medical devices, with imports totalling $65 billion in 2018.
- Realizable Opportunities: The EU is Canada’s second largest export market for medical devices, with opportunities for further growth. Canadian exports of medical devices to the EU reached $675 million in 2018.
How does CETA benefit Canadian medical device exporters?
- All EU tariffs on Canadian medical device products have been eliminated.
- Canadian service providers in the medical devices sector are on equal footing with their EU competitors and receive better treatment than most of their non-EU competitors.
- Canadian medical device companies also benefit from improved labour mobility provisions and expanded access to EU government procurement opportunities.
|Pre-CETA Tariff tablenote *||Under CETA|
|Thermometers and pyrometers||3.2%||0%|
|Glasses for corrective spectacles||3.0%||0%|
|Frames and mountings for spectacles||2.9%||0%|
|Surgical & medical gloves||2.0%||0%|
|Gauze||5.8% - 8.0%||0%|
Rules of origin and customs procedures
- CETA allows for access to advance rulings on the origin or tariff classifications of products.
- CETA seeks to simplify border procedures to make trade easier, more predictable, and transparent. For example, automated border procedures will be implemented where possible.
- 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, aftersales or after-lease service, commercial transactions, translation and interpretation (some 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 and bodies governed by public law (e.g. hospitals, schools, universities).
- CETA’s government procurement provisions cover a broad range of services that may be of interest to the medical devices sector, including repair of machinery and equipment, and technical testing and analysis.
Non-CETA related factors to keep in mind when exporting medical devices to the EU
- Any medical device that is to be marketed or sold in the EU must conform to the European Medical Device Directive and have a CE mark applied.
- Reimbursement systems determine which medical devices will qualify for reimbursement by a health insurance provider. Reimbursement systems are not uniform across the EU and will have varying rules, policies, and payment mechanisms. A Canadian company that wants to sell a medical device in an EU market should have an understanding of the characteristics and particularities of the local reimbursement system prior to export.
|Canada’s Top Medical Device Competitors in the EU||% of Import Market Share|
Source: Eurostat (2018)
Under CETA, Canadian exporters of medical devices can now enjoy the advantages created from the agreement over competitors based in countries 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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