What you need to know about Canada’s trade deal with Europe
OTTAWA — The provisional application of Canada’s Comprehensive Economic and Trade agreement with Europe went into effect Thursday. It comes several months after parts of the trade deal were originally supposed to come into effect, but it’s better late than never for a Liberal government trying to position Canada internationally as a bastion for free trade.
With most European Union countries yet to ratify CETA, however, what does “provisional application” really mean? Here’s what you need to know.
What parts of the deal are taking effect?
Canadian and EU negotiators agreed, when they signed CETA almost a year ago, that most of the deal should go into effect after the Canadian and European Parliaments ratified it.
Many of the policies being adjusted under the deal are made at the EU level rather than by individual states. A few items that deal more specifically with national jurisdictions are being put off until all 28 EU member states have ratified CETA in their legislatures.
But according to a government official, “all economically significant parts of the agreement will come into force” Thursday, including slashing tariffs, increasing mobility for company employees, opening up government procurement rules and recognizing professional qualifications for certain professions (accountants, architects, engineers, lawyers).
What will this mean for consumers?
According to international trade minister François-Philippe Champagne, consumers are major beneficiaries as they’ll get “more choice and lower prices” on products.
For one thing, the quota for European cheese imports will more than double over five years under CETA. Going away immediately are up to 10 per cent tariffs on chocolate and confectionery exports from the EU and up to 15 per cent tariffs on bread, pastries and biscuits, notes a guide from the European Commission.
Almost 150 European products with specific “geographical indications” are given special protection from imitations in the Canadian market: Things like Roquefort cheese, Hungarian salami and Greek kalamata olives.
On the Canadian side, export tariffs as high as 17 per cent on berries, 20 per cent on seafood and eight per cent on maple syrup are vanishing.
What will this mean for businesses?
This is a major market of 510 million consumers now open to Canadian businesses, Champagne noted during question period Wednesday. He declared it will make a positive difference for farmers, fishermen and other small businesses — even as Liberals face an outcry from such groups over proposed tax changes. The government estimates bilateral trade will increase by 20 per cent.
A government explainer lists key sectors that could benefit from CETA due, in large part, to the lower tariffs. These were up to 10 per cent on forestry products and Canadian-mined metals, for example.
Other sectors the government expects will benefit include auto manufacturers, information and communication services and the oil and gas industry (although crude, for example, wouldn’t be able to get to market).