Download Comprehensive Economic and Trade Agreement

Canada-European Union (EU)
Comprehensive Economic and Trade Agreement (CETA)
September 9, 2014
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
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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
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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
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Economies By GDP (Trillions $CDN)
(1)
(2)
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)
(3)
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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
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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
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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
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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
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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
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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)
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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
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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
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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)
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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
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Key Sources of Information
 Overview of CETA Agreement
http://www.international.gc.ca/trade-agreements-accords-commerciaux/agracc/ceta-aecg/index.aspx?lang=eng
 CETA – Technical Summary
http://international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/cetaaecg/understanding-comprendre/technical-technique.aspx?lang=eng
 CETA Benefits for Prince Edward Island
http://www.international.gc.ca/trade-agreements-accords-commerciaux/agracc/ceta-aecg/benefits-avantages/pei-ipe.aspx?lang=eng
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