Newfoundland and Labrador
Creating economic opportunities for Newfoundland and Labrador
Newfoundland and Labrador stands to benefit significantly from preferential access to the EU market. The EU is already Newfoundland and Labrador’s second-largest export destination and second-largest trading partner. Once in force, CETA will eliminate tariffs on almost all of Newfoundland and Labrador’s exports and provide access to new market opportunities in the EU. Exporters will also benefit from improved conditions for export. For example, CETA includes provisions that ease regulatory barriers, reinforce intellectual property rights and ensure more transparent rules for market access. CETA will provide Newfoundland and Labrador exporters with a competitive advantage over exporters from other countries that do not have a free trade agreement with the EU.
|Value in millions of Canadian dollars||1,865.1||2,282.7||2,750.0||4,161.9||1,791.9|
|Metals and mineral products||Fishing and fish products||Other (including agriculture and agri-food, chemicals and plastics, forest products, information and communications technologies, advanced manufacturing)|
|Value in millions of Canadian dollars||2,676.7||153.1||31.3|
Eliminating tariffs on exports
- On day one of CETA’s entry into force, 98 percent of EU tariff lines on Canadian goods will be duty-free, including those on key Newfoundland and Labrador exports such as metals and mineral products. Another 1 percent will be phased out over a seven-year period. Once all phase-outs are complete, 99 percent of EU tariff lines on Canadian goods will be duty-free.
- For fish and seafood, almost 96 percent of EU tariff lines will be duty-free once CETA enters into force. After seven years, 100 percent of these tariff lines will be duty-free, making Newfoundland and Labrador’s world-class goods more competitive in the EU market.
Opening new markets for service suppliers
- Under CETA, service suppliers will have preferential access to and greater transparency in the EU services market, resulting in better, more secure and predictable market access in areas of interest to Newfoundland and Labrador, such as construction services and environmental services.
- The services sector is a key driver of Newfoundland and Labrador’s economy, accounting for 53 percent of the province’s total GDP and employing more than 174,100 Newfoundlanders and Labradorians in 2015.
Improving certainty for investments
- CETA’s investment provisions will provide Canadian and EU investors with greater certainty, transparency and protection for their investments, while preserving the rights of governments to legislate and regulate in the public interest.
- The stock of known foreign direct investment by Canadian companies in the EU totalled $210 billion at the end of 2015, representing 21 percent of Canadian direct investment abroad. The same year, known foreign direct investment from European companies in Canada totalled more than $242 billion, representing 31 percent of total foreign investment in Canada.
Securing access to EU procurement opportunities
- Under CETA, Canadian firms can bid on contracts to supply their goods and services to the three main EU-level institutions (the European Commission, European Parliament and European Council), the EU member state governments, as well as thousands of regional and local government entities.
- The EU government procurement market, estimated to be worth $3.3 trillion annually, holds significant potential for Canadian suppliers of goods and services.
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