At the end of October, Canada and the European Union signed an historic trade pact that will have tremendous impact on Canadian importers and exporters. While the Comprehensive Economic and Trade Agreement (CETA) took seven long years to negotiate, and still must clear around 40 national and regional parliaments in Europe to fully enter force, we wanted to break down what it will ultimately mean for Canadian companies engaged in trade.
Currently, only 25 percent of EU tariff lines on Canadian goods are duty-free. On the day that CETA enters into force, 98% of EU tariff lines for Canadian goods will be duty-free, and an additional one percent will be eliminated over a seven-year phase out period. When CETA is official, Canada will be one of the few countries in the world to have guaranteed preferential access to the world's two largest economies - the US and the EU. Now that's exciting!
What Does CETA Mean for Canadian Exporters?