EXPORT ESSENTIALS CETA: Benefit from Canada’s Free Trade Agreement with the EU Presented by: Allison Boulton Export Navigator Program Manager June 28, 2017
Agenda Introduction, Agenda & Goals 10 minutes Getting to Know You 10 minutes 1. Free Trade Agreements & CETA: Export Navigator 20 minutes 2. CETA Overview: Global Affairs Canada (GAC) 20 minutes 3. CETA Sector Highlights: Ministry of International Trade (MIT) 20 minutes Final Thoughts/Q&A 10 minutes 2
Goals At the end of the webinar, participants will: 1. Understand the key terms of CETA 2. Learn how and when the agreement will come into force 3. Learn how to access the opportunities CETA provides 3
Activity – Getting to Know You Introduce Yourself: 1. Your name 2. What B.C. community are you from? 3. What product or service are you looking to export to the EU? 4
Free Trade Agreements (FTA’s) • Goal is to open markets for consumers and businesses in both countries and increase trade by reducing barriers • Covers most trade in products and services between countries – Includes intellectual property and investment • EPA (Economic Partnership Agreement) and FTA mean the same thing Source: http://international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/agreements_type-type_accords.aspx?lang=eng 5
Agreements Around the World Q: What FTA’s are you familiar with? Source: https://edc.trade/market-diversification- opportunities/?campaign=829719357&device=c&keyword=%20canada%20%20free%20%20trade%20%20agreements&adposition=1t1&creative=1968661 20171&gclid=CLyStJngu9QCFYFnfgodrDkJTQ&utm_referrer=https://www.google.ca/ 6
Agreements Around the World • Interactive Tool – Find agreements by Country Source: https://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/index.aspx?lang=eng 7
What is CETA? • CETA: Canada and European Union (EU) Comprehensive Economic and Trade Agreement • The EU is the world’s second largest economy and Canada’s second largest trading partner after the United States • Will open new markets in the EU for our exporters • Addresses everything from tariffs to product standards, investment, professional certification and many others Source: http://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/ceta-aecg/overview-apercu.aspx?lang=eng 8
How CETA is different ? Source: http://www.edc.ca/EN/Knowledge-Centre/infographics/Pages/ceta-infographic.aspx 9
Tariffs • CETA’s most visible benefit is the elimination of tariffs (duties) – Tariffs are essentially taxes levied at the border that have the effect of increasing the costs to consumers of imported goods. • Tariffs subject to a phasing out: some fish and seafood products, grains, and passenger vehicles • Once CETA is fully implemented* (seven years after entry into force) approximately 99 percent of the EU’s tariff lines will be duty-free *full implementation is after all Member States ratify CETA Source: http://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/ceta-aecg/overview-apercu.aspx?lang=eng 10
CETA’s commitments CETA includes commitments that aim to: • Simplify and, where possible, automate border procedures • Respect the privacy of company information collected for customs purposes • Provide an impartial and transparent system for addressing complaints about customs rulings and decisions Source: http://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/ceta-aecg/overview-apercu.aspx?lang=eng 11
Documents • Country of Origin - where are the inputs sourced from? • Proof of Origin – prove item was made or has “sufficient production” in Canada (or EU) so will qualify for CETA tariff preferences • The Single Administrative Document (SAD) is the common import declaration form for all EU countries and is usually completed by the importer or their agent. • Additional documents must also be presented to customs authorities: – commercial invoices – transport documents (bills of lading), – import licences – inspection certificates (such as health, veterinary or plant-health certificates) 12
Trade Shows A great way to exhibit your product or service: AGRICULTURE AND DEFENCE AND SECURITY AUTOMOTIVE PROCESSED FOODS Kielce, Poland Stuttgart, Germany Cologne, Germany September 5-8, 2017 > October 9-11, 2017 > October 7-11, 2017 > The Canadian Trade Canada will have a pavilion Commissioner Service (TCS) at two co-located international Canada will have a pavilion will have a booth trade shows: EVS30 featuring at Anuga , a trade fair for the food at MSPO Kielce 2017 , an an e-mobility, infrastructure and beverage industry. The event international trade show for and integrative transportation will feature a range of food, drinks the defence industry. Canadian showcase, and f-cell and and organic products, as well as companies will have BATTERY+STORAGE focussing on innovations in equipment and opportunities to attend areas such as electricity, transport technology for the food service and business-to-business meetings, and fuel cell technologies. The catering market. The Canadian gain market insight, and learn Canadian Trade Commissioner Trade Commissioner Service (TCS) about industry trends. The TCS Service (TCS) can provide can provide on-the-ground can provide advice on business on-the-ground assistance and assistance and advice on business development in advice on business development development in the Poland. TCS website . in the region. TCS website . region. TCS website . Contact: Marie-Pier Brunelle , Contact: Fanny Bousquet , Contact: Nora Gruetters , Canadian Trade Commissioner Canadian Trade Commissioner Canadian Trade Commissioner Service in Poland. Service in Germany. Service in Germany. Source: http://tradecommissioner.gc.ca/events-evenements/international.aspx?lang=eng 13
Canada-European Union Comprehensive Economic & Trade Agreement Overview .
The EU is Canada’s 2 nd largest trade and investment partner Canada-EU Bilateral Investment, 2015 Canada-EU Bilateral Trade, 2015 (Known Stock) $ Billions $ Billions 100 250 90 225 80 200 70 175 IM 60 150 50 125 40 100 30 75 IM 20 50 EX 10 25 EX 0 0 Merchandise Services CDIA FDI Source: CETA Secretariat, DFATD Source: CETA Secretariat, DFATD Data: Statistics Canada Data: Statistics Canada 15
Creating a Strategic Advantage for Canada World GDP*, 2015 The EU is the world’s ROW second largest 51% EU** integrated economy, 23% with more than 500 million consumers and a $21 trillion GDP . NAFTA* 27% * Excludes Canada ** Includes the UK Source: CETA Secretariat, GAC 16 Data: IMF, WEO
Setting New Standards
Trade in Goods Ambitious tariff elimination: • Comprehensive tariff elimination across all sectors • 98% of all EU tariff lines eliminated on day one of CETA’s entry into force • Duty-free access across 99% of all tariff lines once fully implemented Clear and favourable rules of origin: • Reflects the real-world sourcing patterns of Canadian and EU companies while encouraging production to take place in Canada or the EU Customs and trade facilitation: • Advance rulings on the origin and tariff classification of products • Automated border procedures will be implemented where possible
Non-Tariff Barriers & Regulatory Cooperation facilitating recognition of equivalency in technical regulations to reduce manufacturing costs for exports; establishing a protocol on conformity assessment that CETA seeks to will allow Canadian companies to have their products reduce the trade tested and certified for the EU market in Canada; distorting impact of non-tariff encouraging Canadian and EU standard-setting bodies barriers by: to cooperate on joint initiatives; and creating mechanisms where trade irritants can be discussed with the goal of speedy resolution.
Government Procurement CETA is expected to open doors to the EU’s $3.3 trillion government procurement market: Construction Entity / Procurement Type Goods Services Services EU-level institutions / Member State Improved Improved Improved government entities * Access Access Access Improved Improved Improved Regional government entities ** Access Access Access Local government entities and bodies New Access New Access New Access governed by public law Utilities New Access New Access New Access Procurement funded by EU cohesion New Access New Access New Access funds at local government level * Removal of reciprocity notes ** Lowering of thresholds
Trade in Services CETA commitments on trade in services is forward-looking. These provisions mean Canada’s access will continually improve over time and will not backslide: Negative List Approach: Ratchet Mechanism: MFN Treatment: All service sectors are Future regulatory or subject to CETA National Treatment: legal changes that obligations unless make it easier for If the EU offers explicitly listed as Canadian service better treatment to reservations in the Canadian service suppliers to access another country Annexes. providers in sectors the EU market are under an FTA, covered by CETA will automatically locked Canada would be treated the same in under CETA. automatically receive way as service the same treatment. providers from the EU.
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