Overview of CETA. Caroline Charette Director, CETA Secretariat. Global Affairs Canada. November 15, 2017
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1 Overview of CETA Caroline Charette Director, CETA Secretariat Global Affairs Canada November 15, 2017
2 Creating a Strategic Advantage for Canada World GDP*, 2016 $ Billions ROW 51% NAFTA * 27% EU** 22% IM EX IM EX * Excludes Canada ** Includes the UK Source: CETA Secretariat, GAC Data: IMF WEO
3 How Did We Get Here? Jun Agreed to Joint Study Oct Joint Study issued: rationale for negotiation s May 2009 Launch of negotiation s announced Oct st round of negotiatio ns Feb Release of completed text Oct Signature of CETA 2017 Provisional Application on September 21st
4 Provisional Application All economically significant parts of the Agreement are now in force (e.g., tariff elimination, increased quotas, services commitments, temporary entry commitments, government procurement obligations). Exceptions to provisional application include: investment dispute resolution mechanism between investors and states. some provisions in the Financial Services Chapter related to portfolio investment and the investment dispute resolution mechanism for investment disputes in financial services.
5 A Gold Standard Agreement Tariffs Investments Barriers to Trade CETA Labor Mobility Public Contracts Services
6 Encouraging Canadian Exports Through Ambitious Tariff Elimination Clear and Favourable Rules of Origin Streamline d Customs and Trade Facilitation Reducing Technical Barriers Canada Tariff Finder: Exporters can consult this tool to explore tariff information for countries with which Canada has a free trade agreement.
7 Preferential Access for Canadian Goods 98% of all EU tariff lines are now duty free Tariff Elimination Under CETA 94% of agricultural tariff lines are now duty free CETA uses a Negative Lists approach: Canada and EU Negative List Tariff Schedule available at: 7
8 Clear and Favourable Rules of Origin Rules of origin are used to determine whether a product is eligible for the preferential tariff rate. CETA s rules of origin reflect today s global value chains. Rules of Origin Under CETA Two main categories: Wholly obtained Cumulation of Origin Advance binding rulings for tariff classification and origin of the products available on the EU Binding Tariff Information and Binding Origin Information websites. Origin declaration available at 8
9 Addressing Non-Tariff Barriers Addressing Non-Tariff Barriers Under CETA CETA includes a chapter on regulatory cooperation and a Protocol on Conformity Assessment. Bottom Line: CETA commitments ensure that technical regulations and standards are applied equally to products and goods originating in both Canada and the EU, ultimately reducing costs and marketing delays for exporters. 9
10 Other CETA Benefits for Canadian Businesses Services Improved access to the EU for service suppliers in areas such as technical and professional services Enhanced labour mobility for businessrelated travel Labour Mobility Governme nt Procurem ent Ability to bid on EU procurement contracts at all levels of EU government Investmen t Greater certainty, stability and protection for investors.
11 Under CETA, the EU has gone a great deal further than it has ever gone when it comes to trade in services Negative List Approach: CETA covers all services unless Canada or the EU specifically exclude them from coverage. Most Favored Nation: Provisions ensure that Canadian service providers receive the best treatment that the EU provides to any of its trading partners. National Treatment: Provisions put Canadian suppliers in most service sectors on an equal footing with national EU service providers. 11
12 Stronger Labor Mobility Temporary Entry Easier for short-term business visitors, intra-company transferees, investors, contractual service providers, and independent professionals to conduct business in the EU. Recognition of Professional Qualifications CETA establishes a framework to facilitate the establishment of Mutual Recognition Agreements for professional credentials. Domestic Regulation Provisions make it easier for Canadian service providers to understand EU rules and procedures. 12
13 CETA provides new access on government procurement for Canadian businesses Entity / Procurement Type Goods Services Construction Services EU-level institutions / Member State government entities (Removal of reciprocity notes) Improved Access Improved Access Improved Access Regional government entities (Lowering of thresholds) Improved Access Improved Access Improved Access Local government entities and bodies governed by public law New Access New Access New Access Utilities New Access New Access New Access Procurement funded by EU cohesion funds at local government level New Access New Access New Access Single Point of Access: For EU procurement: Tenders Electronic Daily (TED) For Canada procurement:
14 Sectors Maritime Services in CETA Canada liberalized targeted maritime services: Repositioning of empty containers Commercial dredging services Feeder services between the Ports of Halifax and Montreal This liberalization should make Canadian ports more attractive and better position Canada to take advantage of increases in trade volumes and changes in global trade routes. Federally-procured dredging contracts permitted for Canadian or EU vessels (for dredging contracts at or above $8.5 million Canadian). However, a coasting trade licence will continue to be required for federally-procured dredging contracts.
15 Investment Increased market access : guaranteed preferential market access to both the EU and North American markets. Canada-EU Bilateral Investment, 2016 $ Billions Enhanced investor protection : greater certainty, transparency, and protection for Canadian and EU investments CDIA FDIC
16 Sustainable Development, Labour and Environment CETA includes progressive commitments Sustainable Development Labour Environment Reaffirms strong commitments to principles and objectives of sustainable development Supports labour rights and high standards of labour protection Ensures trade and the environment are mutually supportive Commitments on transparency, accountability and engagement with civil society
17 Resources for Canadian Exporters Canada Tariff Finder : For more information, resources, and guides on CETA: The Trade Commissioner Service of Canada : Export Development Canada (EDC) : Business Development Bank of Canada :
18 Thank you! CanadaTrade
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