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What is CETA?
The Comprehensive Economic and Trade Agreement (CETA) is a free trade agreement between Canada and the European Union, enacted in September 2017.
Fundamentally, CETA is a progressive trade agreement, with some of the strongest commitments ever seen in a trade deal. These commitments range from promoting labor rights, to environmental preservation. In fact, the obligations in the deal are binding.
Driving trade between the participating parties will undoubtedly create jobs and economic growth– meaning growth opportunities for businesses.
What is in the agreement?
There are many features in this deal. CETA will effectively:
- Remove customs duties;
- Simplify the bidding process for EU companies for Canadian public contracts;
- Open up the Canadian services market for the EU;
- Open up the European food market;
- Reduce / remove the EU exporting costs;
- Make it easier for EU workers to work in Canada;
- Increase predictability of conditions for EU and Canadian investors;
- Make it easier for EU companies to invest in the Canadian market;
- Bolster workers rights in the EU and Canada.
So, what are the benefits?
You’ve probably guessed that these things will be great for companies and consumers alike within both participating parties.
Exporters will benefit from removed duties– especially on industrial products. This will lead to a drop in costs for parts/components.
This will also help European companies become more competitive in the Canadian consumer market, as they will be able to drop their prices.
Another win for EU businesses is that they will be able to bid on public Canadian contracts, while Canada has agreed to increase transparency in their bidding process.
In some cases, the process for EU workers to be employed in Canada will also be simplified, especially for architectural, legal, and accounting professionals.
Artists and other creatives will benefit as well, as the deal strengthens copyright and trademark regulations.
CETA has been enacted as of September 2017. The Commission is now responsible for monitoring its implementation. As of now, the agreement is in force on a provisional basis, meaning there are certain parts of CETA are not yet being implemented. The main portion of the agreement will be coming into effect at the beginning of 2018.