CETA: Tariffs plummet to zero today as Canada-European Union deal gets under way
News Release
September 21, 2017 - Montreal, Québec – Global Affairs Canada
Starting today, under the Canada-European Union Comprehensive Economic and Trade Agreement (CETA); Canadians, including Canadian business owners of all sizes and from all sectors are poised to benefit from unprecedented access to the EU market of half a billion customers, with a GDP of $22 trillion and procurement opportunities worth $3.3 trillion. This is great news for Canada's economy and will make a positive difference for the middle class.
CETA sets new and progressive standards for Canada's future free trade agreements by ensuring that trade puts Canadians front and centre and the emphasis on creating good middle-class jobs.
The Honourable François-Philippe Champagne, Minister of International Trade, today was joined by representatives of the Canadian and European Union business communities at the Port of Montreal to mark a new chapter in the relationship between Canada and the EU. CETA ensures small and medium-sized businesses can compete and win and young entrepreneurs can ensure their future prosperity. It is by far Canada’s most modern, progressive and ambitious trade initiative, and it puts middle-class Canadians at the heart of the Government of Canada’s trade agenda.
With provisional application in force as of today, 98% of tariff lines—9,000 tariff lines—will be duty- free, whether it’s wind turbines, timber or medical devices heading to the European Union or French wine, Italian vinegar or German tools coming to Canada. This benefits Canadian and European Union exporters, importers and, ultimately, consumers, who will enjoy more choices and lower costs for a variety of products and services.
The EU is the world’s second-largest economy and Canada’s second-largest trading partner, after the United States. It is also the world’s second-largest importing market for goods. Preferential access to this large, dynamic market offers tremendous opportunities to create good-paying middle-class jobs for Canadians, a real competitive edge for Canada and significant opportunities for businesses to diversify in the world’s most lucrative market.
Free and open trade that ensures all segments of society are able to realize the benefits of globalization, especially small-business owners, women, Indigenous people and youth, is the guiding principle behind Canada’s progressive trade agenda. With CETA, Canada has created a new level of ambition for Canadian trade in the world, a world-class platform for the country’s businesses to compete from and win and the opportunity to create more middle-class jobs for Canadians.
Quotes
“Today marks an important moment for progressive trade in the world. And with it, Canada and the European Union have made history. I am pleased to be joined today by representatives of Canadian businesses of all sizes, including those that are owned by women, youth and Indigenous groups, to mark the date on which the middle class and those working hard to join it will have countless new opportunities to compete and win in the European Union and create good jobs at home.”
- François-Philippe Champagne, Minister of International Trade
“The Government of Quebec has been one of the main promoters of CETA, an agreement that will facilitate trade in goods, the mobility of individuals and the movement of capital. We are especially proud to announce today the provisional application of this agreement, which will stimulate investments, partnerships and business opportunities that benefit Quebec’s economy.”
-Dominique Anglade, Minister of the Economy, Science and Innovation and Minister responsible for the Digital Strategy
Quick Facts
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Prime Minister Justin Trudeau and President of the European Commission Jean-Claude Juncker agreed to September 21, 2017, as the date of provisional application of the Comprehensive Economic and Trade Agreement.
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On the date of provisional application, 98% of EU tariff lines will be duty free for Canadian goods. An additional 1% will be eliminated over a seven-year phase-out.
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Tariff elimination will provide enhanced export opportunities in the EU market for Canadian producers, processors and manufacturers, as well as for agricultural and agri-food products, fish and seafood, forestry goods and the full range of industrial goods.
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Additional opportunities will come as a result of increased market access for goods, commitments on trade in services and labour mobility, as well as increased access to government procurement.
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Once all EU member states have ratified CETA, Canada and the EU can bring it fully into force.
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