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Canada-European Union (EU) Comprehensive Economic and Trade Agreement (CETA) September 9, 2014.

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Presentation on theme: "Canada-European Union (EU) Comprehensive Economic and Trade Agreement (CETA) September 9, 2014."— Presentation transcript:

1 Canada-European Union (EU) Comprehensive Economic and Trade Agreement (CETA) September 9, 2014

2 2 Timelines  CETA Agreement Agreement in Principle – October 18, 2013 Completion of negotiations announced August 5, 2014  Final Agreement Canada-EU Summit – anticipated for September 2014  Entry into Force Ratification required for Canada and European Union Provinces-Territories and EU Member States reviewing Legal review + translation (23 languages) Anticipate entry into force within 2 years Spring or Summer of 2016

3 3 EU Overview  28 Member States  510 million people  $17 trillion in GDP Germany, France, UK, Italy  EU indicating CETA boost trade by 23% (~37Bn CND) Canada forecasting $12 billion boost to GDP --- low estimate

4 4 Economies By GDP (Trillions $CDN) Canada will have bilateral trade agreements with 2 largest economies. Plus, in negotiations or discussions with Japan and China 1) European Union:: CETA - Agreement in Principle 2) United States : NAFTA; TPP (negotiating) 3) Japan: EPA (negotiating); TPP (negotiating) (1) (2) (3)

5 5 Areas Under Provincial Jurisdiction  Government Procurement  Services  Investment  Technical Barriers to Trade & Regulatory Cooperation  Environment  Labour  Examples of other areas of interest under Federal Jurisdiction: Goods / Market Access / Tariffs; Subsidies; Financial Services; Intellectual Property; Rules of Origin; Wines/Spirits; Temporary Entry

6 6 PEI-EU Trade Total exports to EU = >$80 million / year France, UK, Germany account for ~ 60% Top Export Products: Fish/Seafood (Lobster), Bioscience, Aerospace PEI Exports to European Union ($Millions Cdn) Witnessing 5 yr growth in exports to EU. Diversification of exports

7 7 CETA Benefits TARIFF PACKAGE: 98% immediately; 99% 7 years  Agriculture: 93.6% of tariff lines at 0% immediately 95% + of tariffs will be duty-free after 7 years  Fish / Seafood: 95.5% of tariff lines at 0% immediately 100% of tariffs at 0% no later than 7 years  Industrial Products: 99.3% of tariffs at 0% immediately 100% of tariffs at 0% no later than 7 years

8 8 Agriculture & Agri-Food  Immediate tariff elimination Frozen potato: range from 14.4% to 17.6% Fresh/frozen fruits: Blueberries – up to 14.4% Apples – 9% Cherries – 12% Processed products: Oils – including canola 3.2% to 9.6% Miscellaneous food prep: start at 12.8% Processed pulses/grains; confectionary, etc –Start at 7.7%  Beef and Pork access: transitional quota Beef: 50k tonnes – 35k fresh; 15k frozen Pork: 75k tonnes Duty-free in-quota access

9 9 Agriculture and Agri-Food  Supply-Managed Industries remain intact No reduction in over-quota tariffs Poultry and eggs excluded Quota: 17,700 tonnes of cheese  Geographical Indications: Protection for 180 products --- meats, cheese Feta, Asiago, Munster, Gorgonzola, Fontina Grandfather clause for existing producers in Canada

10 10 Processed Food  Favourable Rules of Origin Allows Canadian products to qualify for tariff elimination Recognizes global value chains Encourages use of Canadian inputs  Derogations (more liberal for high use of imported goods) Processed foods: baked goods, rice, cereals – 35k tonnes High sugar containing: drink mixes, etc – 30k growing to 50k tonnes Chocolate and confectionary: chocolate prep – 10k tonnes Cat and dog food: 60k tonnes  Quota volumes at 3 times current trade  Review every 5 years

11 11 Fish & Seafood FISH PACKAGE:  95.5% of all tariffs at 0% - entry into force 100% of tariffs at 0 after 7 years  Immediate tariff elimination Live lobster: rates of 8% Oysters: rates of 0 to 9%, Most other species (ex. Scallops, shrimp): from 5.5% - 20%  Phased-out tariffs Frozen lobster: 6% and 16% - 3yr & 5yr Mussels: 20% - 7 yrs  Transitional quotas (TRQ) – shrimp and cod

12 12 Industrial Goods  99.3% of tariff lines at 0% – entry into force  Immediate tariff elimination Chemicals: average rates of 5% Forestry products: range from 0% - 10%  Autos: range from 3% - 22% 3, 5, and 7 year phase-outs Origin quota of 100k vehicles --- currently exporting 10k US-EU provisions  Canada has transition periods Ships (3 and 7 years) Autos (3, 5, and 7 years)

13 13 Other Benefits  GOVERNMENT PROCUREMENT Access to $2.7 trillion procurement market Broad coverage of goods, services and construction  Services Broad coverage – most ambitious offer by EU in FTA Professional services: legal, architectural, engineering, urban planning Environmental, ICT, R&D, etc

14 14 Key Sources of Information  Overview of CETA Agreement acc/ceta-aecg/index.aspx?lang=eng  CETA – Technical Summary aecg/understanding-comprendre/technical-technique.aspx?lang=eng  CETA Benefits for Prince Edward Island acc/ceta-aecg/benefits-avantages/pei-ipe.aspx?lang=eng


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