CETA - a new Economic and Trade Agreement between Canada and EU
CETA Photo: Pär Forslund
Prime Minister Justin Trudeau, together with Donald Tusk, President of the European Council, and Jean-Claude Juncker, President of the European Commission, signed CETA on October 30 2016 during the European Union-Canada Leaders’ Summit. CETA is a modern, progressive trade agreement that, when implemented, will generate billions of dollars in bilateral trade and investment, provide greater choice and lower prices to consumers, and create middle class jobs in many sectors on both sides of the Atlantic. Both Canada and the EU are committed to bringing CETA into force as soon as possible.
CETA will definitely generate new opportunities for business growth and employment in both Sweden and Canada.
The CETA agreement represents the most ambitious and comprehensive agreement of its kind to date. In addition, it is the first free trade agreement between the European Union and a G8 country. The agreement will eliminate about 98 % of all Canadian tariff lines directly on the first day of when the agreement comes into force.
Amongst the many other benefits, the agreement will also improve the protection of intellectual property rights in Canada and in the area of government procurement Canada has open up the federal level as well as its provincial and municipality levels to European bidders to an extent never done before. Canada will also recognise a list of EU car standards, from which EU car exports to Canada will benefit and furthermore European enterprises will get better access to key Canadian sectors such as financial services, telecommunications, energy and maritime transport. The EU and Canada have in the agreement jointly reaffirmed the strong commitment to the principles and objectives of sustainable development.
Both Canada and the EU are committed to bringing CETA into force as soon as possible.
The total EU exports to Canada are estimated to go up by 24 % and the Canadian bilateral exports to the EU are predicted to increase by 21 %, according to the Joint Study made prior to the negotiations.
Some highlights of the outcome of the agreement:
- All duties will eventually be fully eliminated on all non-agricultural goods, over 99 % will be eliminated as soon as the agreement enters into force. Though there will be transition periods for cars and ships of up to seven years.
- When it comes to pharmaceuticals Canada will provide a maximum of two years extension of patent rights due to time lost for regulatory approval.
- Agricultural tariff lines will be eliminated by 92 %. For agricultural products regarded as more sensitive non-tariff quotas will apply. For example the non-tariff quota for importing cheese to Canada will be 17,500 tonnes.
- Public procurement will cover federal and sub-federal levels and give a broad coverage. However some areas will not be included among them are for example: healthcare and other public services, shipbuilding and repair, research and development.
For more information:
Video clip Why CETA? (Interviews and examples)
Publication The benefits of CETA
Concrete examples of trade benefits for European countries
EU Press release
Consolidated text of the CETA agreement