On the picture H. E. Sabine Nölke Ambassador of Canada.
The broad Economic and Trade Agreement between the EU and Canada already into force while waiting for the ratification.
President of the European Commission Jean-Claude Juncker welcomed this milestone in the EU’s trade policy: “This agreement encompasses everything we expect our trade policy – a tool for growth for European businesses and citizens, but also a tool to spread our values, globalization good jobs to lead and shape the rules for world trade. This trade agreement is subject to a thorough parliamentary scrutiny reflects the increased interest of the trade policy civilians. Now it’s time for our businesses and citizens to make the most of this opportunity. “.
Trade Commissioner Cecilia Malmström said:. “There are changes afoot for our exporters provisional entry into force of this Agreement, companies and citizens in the EU to immediately reap the benefits of this is a positive signal for the world economy, with the potential for economic growth. This agreement represents a significant strengthening of our relations with Canada, a strategic partner and ally with which we have close historical and cultural ties. ”
However, the agreement shall enter fully and definitively into force after ratification by all EU Member States. The Commission will work with EU Member States and Canada work together to ensure a smooth and effective implementation.
What will CETA?
CETA offers European businesses of all sizes new opportunities to export to Canada. The agreement will save EU businesses € 590 million per year currently paid exported to customs duties on goods to Canada. CETA removed since last September 21th customs duties on 98% of products (tariff lines) which markets the EU with Canada. European businesses have the best opportunities that were once offered to companies outside Canada to compete for contracts to Canadian public – not just at the federal level but also at provincial and municipal levels.
The agreement will be particularly beneficial for smaller companies that have the most difficulty with the cost of the administrative burden posed exports to Canada.
While CETA will create new opportunities for European farmers and food producers, the EU sensitive sectors will be fully protected. The EU has a limited, measured extent its market more open to certain competitive Canadian products while ensuring a better access to the Canadian market for major European exports. Included here is to cheese, wine and spirits, fruit and vegetables, and processed products. CETA will 143 European “geographical indications”, high-quality regional food and beverage products, protection in Canada.
CETA will not change the EU rules on food safety, including the regulation of GMOs and the ban on hormone-treated beef.
Procedure and next steps
The EU and Canada have CETA signed on October 30, 2016, following the adoption of the EU Member States in the Council. On February 15, the European Parliament also endorsed the proposal. On May 16, 2017 Canada ratified CETA. This paved the way for the provisional application once Canada had adopted all the necessary implementing rules.
CETA will be fully implemented when all EU member states will have ratified the agreement in accordance with their respective constitutional requirements. At the moment that CETA has become fully effective, a new and improved system of investment dishes comes in the place of the current mechanism for the settlement of disputes between investors and states (ISDS), which is included in many bilateral trade passing through in the past, the governments of the EU Member States are negotiated. The new mechanism will be transparent and not based on an ad-hoc tribunals.
The EU’s free trade agreements have proven to boost European growth and jobs. An example is the trade agreement between the EU and South Korea. Since its entry into force in 2011, EU exports to South Korea increased by more than 55%, increased exports of certain agricultural products by 70%, sales of cars from the EU tripled in South Korea and is the trade deficit turned into a surplus. This agreement is also a few years after its ratification been provisionally applied at EU level, pending ratification by all EU Member States.
31 million jobs in Europe depend on exports. On average, each billion in additional exports accounted for 14 000 jobs in the EU.
