Steve Verheul
Chief Trade Negotiator
Canada-European Union
Jeff Loder
NL Chief Trade Negotiator
Director of Trade Policy
1
Canada-EU
Comprehensive Economic and Trade Agreement
World GDP*, 2015
ROW
50.7%
EU
22.6%
The EU is the world’s
largest integrated
economy, with more
than 500 million
consumers and a GDP
of CAD 21 trillion.
NAFTA*
26.7%
* Excludes Canada
Source: CETA Secretariat, DFATD
Data: IMF, WEO
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CETA – Setting New Standards
Eliminates
Most Tariffs
Promotes
and
Protects
Investment
Addresses
Non-tariff
Barriers
CETA
Confirms
Access to
public
contracts at
all levels
Enhances
Labour
Mobility
Streamlines
Trade in
Services
CETA – Outcomes for Newfoundland & Labrador
Trade in Goods
Ambitious tariff elimination:
•
•
•
•
Comprehensive tariff elimination across all sectors
98% of all EU tariff lines eliminated on day one of CETA’s entry into force
Duty-free access across 99% of all tariff lines once fully implemented
Duty-free access for 100% of Canadian industrial goods once CETA fully
implemented.
Clear and favourable rules of origin:
• Reflects the real-world sourcing patterns of Canadian and EU companies while
encouraging production to take place in Canada or the EU
Customs and trade facilitation:
• Advance rulings on the origin and tariff classification of products
• Automated border procedures will be implemented where possible
CETA – Outcomes for Newfoundland & Labrador
Metal and Mineral
Products
Between 2013 and 2015, Newfoundland & Labrador
exported an average of $1.8 billion in metal and mineral
products to the EU.
CETA will eliminate tariffs on
•
•
Non crude petroleum products and light oils current tariffs
of up to 4.7%
Metal products such as
- Iron and steel tube or pipe fittings current tariffs of up to 3.7%
- Iron and steel tanks current tariffs of 8% to 20%
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CETA – Outcomes for Newfoundland & Labrador
Fish and Seafood
From 2013 to 2015, Newfoundland & Labrador exported an
average of $153 million worth of fish and seafood to the EU
• Current tariffs of up to 25%
CETA will eliminate tariffs on all fish and seafood products,
including value-added goods like cooked and peeled shrimp,
frozen cod fillets, and processed crab and lobster
•
•
•
•
•
Frozen shrimp, current tariff of 12%
Cooked and peeled shrimp, current tariff of 20%
Snow crab, current tariff of up to 8%
Dried and salted cod, current tariff of 13%
Frozen scallops, current tariff of 8%
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CETA – Outcomes for Newfoundland & Labrador
Forestry and Wood Products
From 2013 to 2015, Newfoundland & Labrador exported an
average of $12 million worth of forestry and wood products
to the EU
• Current tariffs of up to 10%
Comprehensive duty-free, quota-free access to the EU on all
forest products, including value-added products
•
•
•
•
Maple and ash wood, current tariffs of 2.5%
Plywood, current tariffs of 7% to 10%
Oriented strand board, current tariffs of 7%
Fibreboard, current tariffs of 7%
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CETA – Outcomes for Newfoundland & Labrador
Government Procurement
Access to $3.3 trillion EU procurement market
Goods
Services
Construction
Services
EU-level institutions / Member State
government entities *
Improved
Access
Improved
Access
Improved
Access
Regional government entities **
Improved
Access
Improved
Access
Improved
Access
Local government entities and bodies
governed by public law
New Access
New Access
New Access
Utilities
New Access
New Access
New Access
Procurement funded by EU cohesion
funds at local government level
New Access
New Access
New Access
Entity / Procurement Type
* Removal of reciprocity notes / ** Lowering of thresholds
CETA – Outcomes for Newfoundland & Labrador
Non-Tariff Barriers
facilitating recognition of equivalency in technical
regulations to reduce manufacturing costs for exports;
CETA seeks to
reduce the trade
distorting impact
of non-tariff
barriers by:
establishing a protocol on conformity assessment that
will allow Canadian companies to have their products
tested and certified for the EU market in Canada;
encouraging Canadian and EU standard-setting bodies
to cooperate on joint initiatives; and
creating mechanisms where trade irritants can be
discussed with the goal of speedy resolution.
CETA – Outcomes for Newfoundland & Labrador
Trade in Services
Negative List Approach:
Ratchet Mechanism:
All service sectors are
subject to CETA
obligations unless
explicitly listed as
reservations in the
Annexes.
Future regulatory or
legal changes that
make it easier for
Canadian service
suppliers to access
the EU market are
automatically locked
in under CETA.
MFN Treatment:
National Treatment:
If the EU offers
better treatment to
another country
under an FTA,
Canada would
automatically receive
the same treatment.
Canadian service
providers in sectors
covered by CETA will
be treated the same
way as service
providers from the
EU.
CETA – Outcomes for Newfoundland & Labrador
Temporary Entry
CETA provides
greater certainty
and predictability
for Canadian
service providers
• CETA’s temporary entry provisions facilitate
trade by improving labour mobility for a wide
range of business persons and business
activities.
• CETA establishes a framework for the mutual
recognition of professional qualifications as
well as a Chapter on domestic regulation.
• CETA does not impact permanent employment
or migration.
CETA – Outcomes for Newfoundland & Labrador
Investment
• Canadian and EU investors will benefit from the predictable investment climate
established under CETA, which includes:
-
treatment no less favourable than that granted to their domestic
counterparts or any other investor from a third country
investor protections related to treatment of investors/covered investments,
expropriation and transfers; and
a recourse for breaches of investment protections
• Furthermore, the net benefit review threshold under the Investment Canada Act
will be raised to $1.5 billion for EU investments following CETA’s entry into force.
• Access to the EU market, along with existing access to the U.S. market, is
expected to attract new volumes of investment to Canada.
CETA – Next Steps
Canada and the EU are committed to seeing CETA signed
in 2016 and enter into force in early 2017
Legal
Review
Signature
Translation
(Provisional
Application)
Ratification
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