Trade Commissioner Service | Sep 24, 2020

On September 21, 2020, Canada acknowledges three years of the Canada–European Union Comprehensive Economic and Trade Agreement (CETA). Since its inception, CETA has helped Canadian companies, especially small and medium‑sized enterprises (SMEs), grow their business in the European Union (EU) through tariff elimination, and reduced barriers to trade.

How CETA can help your business

CETA is a comprehensive, ambitious, and inclusive free trade agreement that covers virtually all sectors and aspects in order to eliminate or reduce barriers to trade between Canada and EU countries.

What does this mean for your business? You can tap into a full range of benefits and advantages across markets in the EU.

The EU is one of the largest economies in the world and accounts for more than 450 million consumers, and is the world’s largest trader of manufactured goods and services.

See:  State of the European Union 2020: Europe’s Digital Decade

Thanks to CETA, 98% of tariff lines are now eliminated for Canadian products exported to the EU, and 99% will be eliminated once the agreement has been fully implemented. This provides Canadian businesses like yours with preferential access to the second largest economy in the world, and may help you compete as an equal with local companies.

According to Mary Ng, Minister of Small Business, Export Promotion and International Trade, “CETA is strengthening economic relations, creating jobs for Canadians, and promoting new opportunities for Canadian and European businesses alike — which is more important than ever as we work towards economic recovery from COVID‑19. With an inclusive trade agreement like CETA, we’re demonstrating that trade can support sustainable economic growth and that the benefits can be shared by everyone.”

The agreement also offers advantages beyond tariff elimination, including:

• Reduced barriers to trade: CETA makes it easier to move goods across borders and for business people to get to the right place at the right time to pursue opportunities. The agreement also addresses potential barriers to digital trade and protects the free flow of data across borders.
• Market transparency and stability: CETA sets requirements for product standards, investment, professional certification and other areas of activity. It also includes extensive provisions on labour rights and environmental protection.
• Procurement opportunities with EU governments: CETA expands Canada’s current access to supply goods and services in the EU. Canadian companies can bid on a broad range of opportunities at all levels of government across EU countries with some exceptions (e.g. the opportunities must exceed minimum thresholds), opening a potential market estimated at $3.3 trillion annually. The agreement also provides Canadian companies with a competitive edge when bidding on EU government contracts thanks to preferential tariffs.