On September 21, 2017, the Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union (EU) entered into force.
The purpose of CETA was to facilitate trade between Canada and the EU for the mutual benefit of their citizens and residents. To that end, one of CETA’s goals is the elimination of tariffs. This target is well under way to being met. On the day CETA entered into force, 98% of EU tariffs were eliminated for Canadian goods, as compared with 25% prior to CETA. Over the next seven years, an additional 1% of tariffs will be eliminated. This will make Canadian goods more affordable to European buyers, and vice versa, prompting increased trade between Canada and the EU.
With the progressive elimination of tariffs comes unprecedented market access for Canadian service suppliers in the EU. As more and more Canadian suppliers conduct their business in the EU, there will be increased mobility of skilled workers and more opportunity for businesses to expand into foreign markets.
To make the flow of goods and services even swifter, CETA contains a commitment to keep customs procedures simple and predictable, resulting in shorter processing times at the border.
Finally, CETA will create a favourable environment for foreign investors by assuring greater certainty, stability, and protection for their investments. Investors will be treated fairly and will not be subject to discrimination in favour of domestic investors.
CETA has transformed the nature of trade between Canada and the European Union, making Canada an even more attractive destination for foreign investment from all over Europe. If you would like to learn more about how to take advantage of the new changes brought about by CETA, call 1-800-CITIZEN today to book your consultation with a lawyer.