Free Advice THINKING OF TAKING YOUR business elsewhere? Understand how international trade deals fit into the picture
Canada is party to three major trade agreements: with the U.S. and Mexico ( NAFTA), the EU ( CETA, due to take effect this month) and South Korea ( CKFTA). Each removes tariffs and other barriers on many goods and services. International trade adviser Allison Boulton outlines what you need to know
DO WE HAVE A TRADE AGREEMENT WITH THAT COUNTRY?
When choosing your foreign market, a trade deal should be one of your considerations. CKFTA and CETA are both progressive agreements, so things like tariffs may change over several years. For your product or service, note where the deal stands.
IS MY PRODUCT CANADIAN?
Goods with imported components–for example, a table with legs made from foreign metal– might not rate as Canadian under trade rules. “If the answer is `Yes, it's an amalgamation,' you can still export it, but you need to keep your eyes open,” Boulton warns.
FREE TRADE GOES TWO WAYS
B.C. companies benefit from trade agreements, but don't forget that products arrive as quickly as they go out. “That's another reason we need to stay on our game,” Boulton says. “If we're not competitive on a world scale, we've still got our own little territory, and other people are coming in.”