Benefits of CETA
The Canada-EU Comprehensive Economic and Trade Agreement (CETA) gives companies based in Canada unprecedented access to 28 countries, more than half a billion consumers and a $24-trillion market. In 2018, Canada’s merchandise exports to the EU were nearly $44.5 billion, an increase of 7% over 2017.
Benefits of CETA are already visible on both sides of the Atlantic, with bilateral merchandise trade in 2018 up by more than 9% from 2017. Duties (or tariff lines) have been removed on 98% of products that the EU trades with Canada. Over the course of the next few years, a further 1% of tariff lines will be phased out, and 99% of all Canadian goods entering the EU market will be duty-free.
In 2018, the top five fastest growing large export sectors were aluminium (up 378%), motor vehicles and parts (up 89%), mineral fuels and oils (up 84%), inorganic chemicals (up 82%) and wood pulp (up 45%).
The top three countries that saw increased exports from Canada in 2018 were the Netherlands, with an increase of $1.6 billion (or 51%); Italy, with $735 million (or 33%); and Germany, with $649 million (or 17%).
Benefits of CETA
CETA strengthens economic relations and promotes new economic opportunities for Canadian and European businesses in the following ways:
- lowers prices and widens choice for Canadian and European consumers
- reduces or eliminates customs duties for exporters and importers
- makes it easier for Canadian firms to sell services in Europe
- allows Canadian firms to bid for EU public contracts
- protects Canada’s innovators and artists
- recognizes professional qualifications across economies
- encourages European companies to invest more in Canada
- protects people’s rights at work
- provides environmental protections
CETA helps Canadians trade with the EU through:
- clear rules of origin
- streamlined customs and trade facilitation
- access to EU government procurement
- enhanced labour mobility
CETA was signed by the EU and Canada in 2016 and entered into force in September 2017. With its provisional application, all economically significant parts of the agreement are now in force. The agreement will take full effect once all EU member states have formally ratified it. To date, 13 EU member states have fully ratified CETA: Austria, Croatia, the Czech Republic, Denmark, Estonia, Finland, Latvia, Lithuania, Malta, Portugal, Spain, Sweden and the United Kingdom.
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