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The Comprehensive Economic and Trade Agreement between Canada and the EU comes into effect

22.09.2017



ec.europa.eu

On September 21, 2017,  the Canada-EU Comprehensive Economic and Trade Agreement (CETA) came temporarily into effect after the EU member states had agreed to it in the EU Council and Parliament. In the CETA, Bavarian Minister of Economic Affairs, M. Ilse Aigner, sees great growth potential:

“Bavaria lives on free trade. Half of our GDP per capita depends on foreign trade, directly or indirectly. With the CETA, new export opportunities open for our companies in  Bavaria. I see great potential, especially for our Mittelstand (SMEs).”

Minister Aigner also highlights the need for further development of world trade : according to her, CETA is an excellent agreement which maintains Europe’s high environmental and social protection standards and could serve as a blueprint for future agreements.

“Protectionism serves no one”, she says. “We must strive to create open markets, where the same rules apply to everyone.”


What does CETA bring?

Starting September 21, 2017, Canada abolishes 98% of tariff barriers for products and services traded with the European Union. This means savings of 590 million euros annually (870 million C$) for European companies on customs when they are exporting to Canada. The needs for double safety tests for products also disappear, as well as long customs procedures and heavy legal costs.

EU companies gain access to public markets in Canada, be it on federal, provincial or municipal levels.

The European market for certain products from Canada is being opened in a very prudent and limited manner. Access to the Canadian market on the other hand is facilitated for European cheese, wine and liquors, fruit and vegetables, as well as processed foods. CETA furthermore guarantees the respect of 143 EU protected geographic origins for high value-added local produce as well as beverages.

The 500 million European consumers will also profit from the CETA with a wider array of products and services, but only as long as those meet all existing European regulatory requirements. The Agreement enables employees a greater mobility and sets a frame for  mutual recognition of professional qualifications – from architects up to crane operators. Read more (website of the European Commission)

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