Insurance Insights

CETA is now in effect. What does this mean for Canadian businesses?

CETA

September 25, 2017

As of September 21, 2017, the Canada-European Union (EU) Comprehensive Economic and Trade Agreement (CETA) is in effect. What does this mean for Canadian businesses?

Unlike NAFTA and other free trade agreements, there was no transition period for the vast majority of what is included in CETA. This agreement opens up access for businesses to Canada’s largest trading partner behind the United States, with a market of 510 million consumers. Over 98% of Canadian goods will now be able to enter Europe Union countries without tariffs, compared to 25% previously. An additional 1% will be eliminated over 7 years.

CETA applies to businesses that offer services as well – with the exception of certain types of services, Canadian service providers will be treated the same as those who are EU-based. The EU is the largest importer of services in the world.

Additionally, Canadian companies will be able to bid for all levels of government contracts in the EU.

The agreement includes commitments to reduce border processing times by simplifying, streamlining and unifying procedures between Canada the European Union, speeding up the flow of goods. Also included is a protocol allowing product testing and certification for the EU market to be completed within Canada.

It is reported that CETA will increase bilateral trade by 20% and Canada’s income by $12 billion each year. Currently, Canada holds only 1% of the EU market.

 

For more information about the agreement, please visit the Government of Canada’s CETA webpageFor information and resources on insurance and risk management, please contact us

 

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