One year on: EU-Canada trade agreement delivers positive results

Malmstrom Canada 2018

Statement by Cecilia Malmström, Member of the EC in charge of Trade, on the Reform of the World Trade Organization (WTO) and the Global Alliance for Torture-Free Trade.

This article is brought to you in association with the European Commission.

Friday 21 September will mark the first anniversary of the provisional entry into force of the Comprehensive Economic and Trade Agreement (CETA) between the EU and Canada.

Early signs show that the agreement is already starting to deliver for EU exporters. Commissioner Malmström will visit Canada on 26 and 27 September to take stock of progress.

Whilst in Montreal, the Commissioner will meet with Minister of International Trade Diversification, James Gordon Carr. She will attend the first EU-Canada Joint Committee on 26 September, which is the highest body for the two partners to discuss issues of interest related to the agreement. She will also visit several European and Canadian companies, discuss with company representatives who are already making use of the agreement, and speak at the Université de Montréal on 27 September.

Commissioner for Trade Cecilia Malmström said: “The EU-Canada trade agreement has now been in action for a year and I’m pleased with the progress made so far. The preliminary data shows there is plenty to celebrate, even at this stage. Exports are up overall and many sectors have seen impressive increases. This is great news for European businesses, big and small. As ever with these agreements, there are certain areas where we have to make sure that we thoroughly implement what has been agreed, making sure that citizens and companies can fully benefit from the new opportunities. This is something I intend to discuss with my Canadian counterparts at the Joint Committee next week. I’m happy to say that our partnership with Canada is stronger than ever – strategically as well as economically. Together, we are standing up for an open and rules-based international trading order. CETA is a clear demonstration of that.”

Early days but positive trends

In addition to removing virtually all customs duties, CETA has given a boost to the business climate between the EU and Canada, offering valuable legal certainty for EU companies looking to export. Although it is too early to draw any firm conclusions, the initial trade results are pointing in the right direction. Across the EU, the latest statistics available, covering the October 2017 to June 2018 period, suggest that exports are up by over 7% year on year.

Of these, certain sectors are doing especially well. Machinery and mechanical appliances, which make up one fifth of EU exports to Canada, are up by over 8%. Pharmaceuticals, which account for 10% of the EU exports to Canada and are up by 10%. Other important EU exports are also on the rise: furniture by 10%, perfumes/cosmetics by 11%, footwear by 8% and clothing by 11%.

In terms of agricultural products, there are also some encouraging figures: exports of fruit and nuts increased by 29%, chocolate by 34%, sparkling wine by 11% and whisky by 5%.

Companies that are already benefitting from CETA in different ways include, for example:

  • The consortium of Italian San Daniele ham producers increased its sales to Canada by 35%. Exports of Italian agricultural products to Canada are up by 7.4% overall.
  • Belgian chocolate company Smet Chocolaterie that has just opened their first shop in Ontario, Canada, to cope with extra demand for their products; thanks to scrapping of 15% import duties their sales increased by a fifth compared to year ago. European exports of chocolate to Canada are up 34% overall.
  • Spanish company Hiperbaric making innovative machines for preserving food using high pressure. Thanks to CETA, it is easier for their workers to enter Canada temporarily to install and maintain their equipment.

Company examples from Belgium, Estonia, Finland, France, Ireland, Italy, The Netherlands, Spain, and Sweden are available here.

Background

CETA offers new opportunities for EU businesses of all sizes to export to Canada. The agreement eliminated tariffs on 98% of products that the EU trades with Canada. This amounts to approximately €590 million in saved duties per year once all the tariff reductions kick in. It also gives EU companies the best access ever offered to companies from outside Canada to bid on the country’s public procurement contracts – not just at the federal level but at provincial and municipal levels, too.

CETA creates new opportunities for European farmers and food producers, while fully protecting the EU’s sensitive sectors. The agreement now means that 143 EU high quality food and drink products (the “geographical indications”) can now be sold under their own name in Canada and are protected from imitation.

The agreement also offers better conditions for services’ suppliers, greater mobility for company employees, and a framework to enable the mutual recognition of professional qualifications, from architects to crane operators.

CETA has been provisionally in force since 21 September 2017 following its approval by EU Member States, expressed in the Council, and by the European Parliament. It will only enter into force fully and definitively, however, when all EU Member States have ratified the agreement.

The EU has 39 trade agreements with 69 countries in place. The latest agreement concluded by the EU is with Japan.  The EU’s trade agreements have been proven to spur European growth and jobs. One example is the EU-South Korea trade deal. Since it entered into force in 2011, EU exports to South Korea have increased by more than 55%, exports of certain agricultural products have risen by 70%, EU car sales in South Korea have tripled and the trade deficit turned into a surplus. 31 million jobs in Europe depend on exports. On average, each additional €1 billion of exports supports 14 000 jobs in the EU.

Advertising

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

The relation of deforestation and respiratory diseases

Oslo leads the way in ‘Breathe Life’ campaign for cleaner cities in climate change era

Manufacturing is finally entering a new era

Last year, this coral reef was teeming with life. Now it’s dying – and it’s up to us to save it

As monsoon rains pound Rohingya refugee camps, UN food relief agency steps up aid

Google once more under EU crossfire from a possible record fine and new Right to be forgotten case

Can the Americans alone determine the future of Syria?

‘We will not give up on looking for peace for South Sudan’: UN deputy chief

This is the ever-changing state of the world’s top cities

Cohesion Policy: EU invests €880 million to improve Poland’s railway system

Making money from meeting the SDGs? An overarching approach to sustainable development.

Brexit: The Conservative Party drives the UK and Europe to a perilous road

Vegans in France are using extreme tactics to stop people eating meat

“Let hope be the antidote to fear” – Today’s WHO briefing and other key Coronavirus updates, tips and tools

UN working to prevent attacks on civilians in eastern DR Congo

European Globalisation Adjustment Fund, who gets it and who pays the bill?

New Zealand has unveiled its first ‘well-being’ budget

New Africa-Caribbean-Pacific/EU Partnership: moving forward towards a new partnership fit for the future

How three US cities are using data to end homelessness

Japan’s workforce will be 20% smaller by 2040

Trade barriers: EU removes record number in response to surge in protectionism

Japan’s agro-food sector would benefit greatly from policies to boost innovation, entrepreneurship and sustainable resource use

IMF – World Bank meetings: US – Germany clash instituted, anti-globalization prospects visualized

Jellyfish are taking over the world – and climate change could be to blame

Humanitarian migration falls while labour and family migration rises

How we can survive the great COVID lockdown: IMF Chief Economist Gita Gopinath

The blackened white coat of the doctors

Shifting Tides: Policy Challenges and Opportunities for the G-20

Iran cannot be allowed to develop nuclear weapons: Israeli Foreign Minister

New rules for short-stay visas: EP and Council reach a deal

How a trade war would impact global growth

This is where teachers are most (and least) respected

Gender Science: A sneaky healthcare risk factor

These are the countries that eat the most meat

AI-driven companies need to be more diverse. Here’s why

European Commission increases support for the EU’s beekeeping sector

As fighting in Libya escalates, so does number of children ‘at imminent risk of injury or death’

EU Commission closer to imposing anti-dumping duties on Chinese solar panel imports?

The EU threatens to impose extra import duties on Chinese products

6th Edition of India m2m + iot Forum to open its door on 14th January, in association with The European Sting

Rights of ‘gilets jaunes’ protesters in France, ‘disproportionately curtailed’, say UN independent experts

Human rights champions from across the world receive top UN prize

Airships, solar planes and Soviet-era sea skimmers … here’s how we fix air travel

Amazon: our green is turning to ashes

The US calls off globalization, targets Germany. Paris offer to Berlin comes at a cost

Leveraging digital for high quality internships

Aid teams respond to escalating southwest Syria conflict: 750,000 civilians are at risk

FROM THE FIELD: For refugees and migrants in Europe, healthcare’s essential but a challenge to find

EU gas market: new rules agreed will also cover gas pipelines entering the EU

De-stigmatizing a mental illness: importance of individual and collective representativeness

Top UN rights official urges transparent probe into Khashoggi disappearance

The Shifting Rhythms of Harmonious China: Ancient, Modern & Eternal

How the digital finance revolution can drive sustainable development

South Sudan: ‘Outraged’ UN experts say ongoing widespread human rights violations may amount to war crimes

These are the world’s best universities

Schengen is losing ground fast revealing Europe’s clear inability to deal with migration crisis

WEF Davos 2016 LIVE: “It is the implementation, Stupid!”, German Finance Minister Wolfgang Schaueble points the finger to Greece from Davos

Health spending set to outpace GDP growth to 2030

“Health and environment first of all”, EU says with forced optimism after 7th round of TTIP talks

Here’s what keeps CEOs awake at night (and why it might be bad news for your next job)

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s