Trade Agreement (CETA) on Canadian manufacturers The impact of the Canada-European Union Comprehensive Economic
The major and historic Canada-European Union Comprehensive Economic and Trade Agreement (CETA) has just been signed and the ripple effects on the Canadian economy are only just beginning to be observed. With respect to Canadian manufacturers, this agreement is excellent news, enabling them to more easily penetrate 28 new European markets and even bid on RFPs issued from the three major European institutions (the European Commission, European Parliament and the Council of the European Union) as well as a multitude of regional and local public institutions and public services.
For produced goods, the agreement will allow for 99% of these to be exempt from EU tariffs lines. Seven years following its signature, all industrial products will also be exempt. Cutting-edge manufacturing sectors, including machinery and equipment, aerospace and railway, will benefit from duty-free EU tariff lines, which represent 22% of the value of exported goods. Each year, these products represent, on average $6 billion in exports. For chemical and plastic products, tariffs that hovered between 4.9% and 6.5% have also been eliminated.
Industry experts from the Canadian government predict that the “opportunities for Canadian investors and new investors afforded by CETA will generate new, well-paid jobs in the Canadian manufacturing industry.” In fact, CETA will create amazing opportunities for Canadian businesses. For example, there is growing demand across the EU for sustainable technologies with an array of different applications. In addition, new members of the EU, such as in Central and Eastern Europe, are in major need for industrial machinery.
Now that the agreement has been signed, the text can be temporarily and partially used as of the beginning of 2017.
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