The EU-Canada Agreement: A Comprehensive Guide
The EU-Canada Comprehensive Economic and Trade Agreement (CETA) is a free trade agreement between the European Union (EU) and Canada. It was signed in 2016 and entered into provisional application in 2017.
CETA aims to remove tariffs on most goods traded between the EU and Canada, increase investment opportunities, and promote regulatory cooperation. It is often touted as one of the most ambitious trade agreements ever negotiated.
Benefits for the EU
The EU is one of the largest economies in the world and Canada is its 12th largest trading partner. CETA will increase trade between the EU and Canada by an estimated 20%. According to the European Commission, CETA will:
– Remove tariffs on 98% of all goods traded between the EU and Canada
– Increase European exports to Canada by €8 billion
– Create a market of 500 million consumers for Canadian goods and services
– Increase EU GDP by €12 billion
Benefits for Canada
Canada is a large economy in its own right and the EU is its second-largest trading partner after the United States. CETA will increase trade between Canada and the EU by an estimated 23%. According to the Canadian government, CETA will:
– Remove tariffs on 99% of all goods traded between Canada and the EU
– Increase Canadian exports to the EU by CAD 1.5 billion
– Create a market of 27 member states for Canadian goods and services
– Increase Canadian GDP by CAD 12 billion
Key Provisions of CETA
1. Tariff Elimination – CETA eliminates tariffs on almost all goods traded between the EU and Canada.
2. Services trade – CETA provides greater access to the services trade sector, including mutual recognition of professional qualifications, enhanced mobility for businesspeople, and improved investment protection.
3. Public procurement – CETA provides access to government procurement opportunities at all levels of government, including in the EU’s 28 member states and Canada’s provinces and territories.
4. Investment protection – CETA establishes a comprehensive investment chapter to protect investors.
5. Regulatory cooperation – CETA promotes regulatory cooperation between Canada and the EU, aiming to reduce regulatory barriers to trade and investment.
Conclusion
CETA is a comprehensive and ambitious free trade agreement that will provide significant benefits to both the EU and Canada. It is a testament to the strength and stability of the economic and political relationship between the two parties.