Trade Talk | It is Approved! CETA Free Trade Agreement



CETA gets a YES

Trade Talk | It is Approved! CETA Free Trade Agreement

Trade – New 2017

The European Union’s (EU) parliament approved a trade deal, The Canadian European Trade Agreement (CETA) with Canada on Wednesday, extolling the pact as a sign of co-operation at a time when many political forces are trying to halt globalization.

After three hours of debate on Wednesday and years of negotiations preceding that, the EU’s legislature approved the deal by a margin of 408 for, 254 against with 33 abstentions, allowing for its provisional entry into force.

Prime Minister Justin Trudeau is set to address European Parliament in Strasbourg, France,— a first for a Canadian leader — and is scheduled to address top business leaders a day later in Germany.

The deal will drop barriers between the EU’s economy of half a billion people and Canada’s 35 million. Trade between the two sides amounts to more than 60 billion euros ($63 billion) a year, and the EU expects the so-called CETA deal to boost this by 20 per cent by removing almost all tariffs.

 

What we know for sure:

 

The Agriculture industry gets set for a win, after 7 years, 93.8% of the agricultural tariffs will be eliminated.

There were 695 Members of European Parliament (MEPs) present in the 751-seat legislature in Brussels, 408 voted in favour of CETA, 254 against it and 33 votes abstained from voting. CETA won EU Approval. CETA’s full implementation will require ratification by dozens of regional and national parliaments and their are socialist challenges yet to overcome.

The CETA trade deal in numbers:

98% – The number of tariffs between the EU and Canada that would be eliminated

 

€500 million – The estimated amount that EU exporters would save in duties annually

  • 3.6m The population of Wallonia
  • 36.3m The population of Canada
  • 508m The population of the EU

 

Source: StatCan, Europa.eu

 

CETA will see the removal of 99% of non-farm duties between the EU’s market of 500 million people and Canada’s 35 million – trade worth €63.5bn ($67bn; £54bn) in 2015. That will boost growth and jobs on both sides of the Atlantic, supporters say. ~ Reuters

 

According to the public stage of opinion, both governmental and business sector wise, there is good reason to be very happy with this progress.

What we are talking about:

Our Senior Trade Advisor shares some qualifying commentary: CETA has not yet been ratified so there is no set date for the actual implementation.

Once all the information has been received in regards to the rules of origin forms required and duty reductions; we will be able to advise our trade partners.

Once implemented most import duties on qualifying goods will be eliminated. Certain commodities will be subject to dty reductions over a longer period. Some examples of these goods are automobiles, grain and certain fish products as well as dairy.

If you have specific questions regarding specific imports, please forward to our Trade Advisory to review. If the information is available we will be able to give an opinion.

What we think:

These are early days – ratifying CETA has a ways to go yet. There will be a phasing in of the items in CETA over time and as governing parties determine which aspects to phase in they will also release the data required to support our trade partners in executing their trade in accordance with CETA.

 

We think Canadians will benefit as will the EU. Is this the Golden bible of Trade Agreements for Free Trade, that is yet to be seen and we are too early into the process to make those determinations.

 

What we advise:

 

Engage your customs broker early – There are tremendous potential benefits, especially in the agriculture sector. It will take some time yet for full ratification to be implemented which means that having the expertise of your trade compliance broker is an essential component of exploring or accessing benefits ahead with CETA.

 

You can reach our experts, as always 24/7 at : Toll Free 888.538.1566

What we are reading:

The CETA Agreement in its entirety as it stands today can be viewed here:

http://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/ceta-aecg/index.aspx?lang=eng

 

An overview of its impact by province across Canada as provided by the Canadian Government is below:

 

CETA will eliminate tariffs on almost all of Canada’s key exports when it comes into force. Exporters will also benefit from other CETA provisions that will ease regulatory barriers, reinforce intellectual property rights, and ensure more transparent rules for market access.

Alberta

Alberta stands to benefit significantly from preferential access to the EU market. The EU is already Alberta’s fourth-largest export destination and third-largest trading partner. Once in force, CETA will eliminate tariffs on almost all of Alberta’s exports and provide access to new market opportunities in the EU. Exporters will also benefit from improved conditions for export.

 

British Columbia

British Columbia stands to benefit significantly from preferential access to the EU market. The EU is already British Columbia’s fifth-largest export destination and fourth-largest trading partner. Once in force, CETA will eliminate tariffs on almost all of British Columbia’s exports and provide access to new market opportunities in the EU. Exporters will also benefit from improved conditions for export.

 

Manitoba

Manitoba stands to benefit significantly from preferential access to the EU market. The EU is already Manitoba’s third-largest export destination and third-largest trading partner. Once in force, CETA will eliminate tariffs on almost all of Manitoba’s exports and provide access to new market opportunities in the EU. Exporters will also benefit from improved conditions for export.

 

New Brunswick

New Brunswick stands to benefit significantly from preferential access to the EU market. The EU is already New Brunswick’s second-largest export destination and third-largest trading partner. Once in force, CETA will eliminate tariffs on almost all of New Brunswick’s exports and provide access to new market opportunities in the EU. Exporters will also benefit from improved conditions for export.

 

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.

 

Northwest Territories

The Northwest Territories stand to benefit significantly from preferential access to the EU market. The EU is already the Northwest Territories largest export destination and trading partner. Once in force, CETA will eliminate tariffs on almost all of the Northwest Territories’ exports and provide access to new market opportunities in the EU. Exporters will also benefit from improved conditions for export.

 

Nova Scotia

Nova Scotia stands to benefit significantly from preferential access to the EU market. The EU is already Nova Scotia’s second-largest export destination and second-largest trading partner. Once in force, CETA will eliminate tariffs on almost all of Nova Scotia’s exports and provide access to new market opportunities in the EU. Exporters will also benefit from improved conditions for export.

 

Nunavut

Nunavut stands to benefit significantly from preferential access to the EU market. The EU is already Nunavut’s largest export destination and second-largest trading partner. Once in force, CETA will eliminate tariffs on almost all of Nunavut’s exports and provide access to new market opportunities in the EU. Exporters will also benefit from improved conditions for export.

 

Ontario

Ontario stands to benefit significantly from preferential access to the EU market. The EU is already Ontario’s second-largest export destination and second-largest trading partner. Once in force, CETA will eliminate tariffs on almost all of Ontario’s exports and provide access to new market opportunities in the EU. Exporters will also benefit from improved conditions for export.

 

Prince Edward Island

Prince Edward Island stands to benefit significantly from preferential access to the EU market. The EU is already Prince Edward Island’s second-largest export destination and second-largest trading partner. Once in force, CETA will eliminate tariffs on almost all of Prince Edward Island’s exports and provide access to new market opportunities in the EU. Exporters will also benefit from improved conditions for export.

 

Quebec

Quebec stands to benefit significantly from preferential access to the EU market. The EU is already Quebec’s second-largest export destination and second-largest trading partner. Once in force, CETA will eliminate tariffs on almost all of Quebec’s exports and provide access to new market opportunities in the EU. Exporters will also benefit from improved conditions for export.

 

Saskatchewan

Saskatchewan stands to benefit significantly from preferential access to the EU market. The EU is already Saskatchewan’s fourth-largest export destination and fourth-largest trading partner. Once in force, CETA will eliminate tariffs on almost all of Saskatchewan’s exports and provide access to new market opportunities in the EU. Exporters will also benefit from improved conditions for export.

 

Yukon

Yukon stands to benefit significantly from preferential access to the EU market. The EU is already Yukon’s seventh-largest export destination and second-largest trading partner. Once in force, CETA will eliminate tariffs on almost all of Yukon’s exports and provide access to new market opportunities in the EU. Exporters will also benefit from improved conditions for export.

 

Headlines today:

Huffington Post: BRUSSELS — The European Union’s parliament approved a trade deal with Canada on Wednesday, extolling the pact as a sign of co-operation at a time when many political forces are trying to halt globalization.

After three hours of debate on Wednesday and years of negotiations preceding that, the EU’s legislature approved the deal by a margin of 408 for, 254 against with 33 abstentions, allowing for its provisional entry into force.

 

Global News: After three hours of debate on Wednesday and years of negotiations preceding that, the EU’s legislature approved the deal by a margin of 408 for, 254 against with 33 abstentions, allowing for its provisional entry into force.

The agreement as it was voted on without ratification is available at the link below:

Oct 2016: http://trade.ec.europa.eu/doclib/docs/2014/december/tradoc_152982.pdf

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