The Trade deal between Europe and Canada (CETA) Explained

With the Comprehensive Economic and Trade Agreement (CETA)  is now enforce,  many smaller companies are surprised to learn they can now ship their goods for import to the EU duty free.

 

Over 95% of the agreement, including tariff reductions are now in force.    Canadian companies can now send qualifying goods duty free with simple ways to request preferential duty free import to the EU.   See below.

 

Jet Worldwide provides low cost shipping to France, Germany, Spain from Canada as well as well as  distribution within the EU.

 

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What is the impact beyond tariff reductions?

The key benefit of CETA is the virtual elimination of tariffs between Canada and the European Union.   The deal’s supporters expect it to create additional GDP growth through cuts in tariffs in key economic sectors  that include agriculture, auto and pharmaceutical industry.

Under CETA provisions, qualifying goods can be declared on the commercial invoice - greatly simplifying the ability for Canadian companies to offer lower costs to European markets.    See wording below on the certificate of origin wording.

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CETA  designed to facilitate international trade between the EU And Canada

Contact our Euro-Canadian Team for information on shipping parcels to the EU

 

Non-Tariff Benefits of CETA include:

  • Canadian and European shared recognition of professional accreditation for architects, accountants and engineers,
  • Ease citizenship or residency requirements including simplified transfer for inter-company staff and other professionals between the EU and Canada.
  • Ownership and investment restrictions
  • Clarified regulations between Canada and the EU on intellectual property rights
  • European and Canadian companies gain the right to bid on Canadian and European municipal contracts respectively (see section below on inter-provincial trade)
  • Greater flexibility regarding 'rules of origin' regarding automobiles and auto parts

 

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Expected benefit to GDP growth in Canada and EU

As noted above, in an era that tariffs have already trended down to low levels, estimates of the expected benefit to GDP range have been modest:  The growth in Canada's GDP from full implementation of CETA range from as low as 0.3% to more than 0.5%.    

 

Brexit impact of CETA

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Many of the estimates of the benefits of the CETA deal to Canada were “pre-Brexit estimates.”   Over 40% of Canada’s exports to the European Union go the UK.   While the UK will remain a key trading partner forCanada, Brexit certainly lessons CETA benefit.

Companies are diverting their logistics from the UK to the European continent.   Contact our team to get information on EU based  import, warehousing and distribution.

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CETA has helped open up Canadian inter-provincial trade:

The provincial governments of Canada are actively working together to ensure out of province Canadian businesses will have access to provincial public markets that are at least as favourable as those granted to European companies in CETA.

Canada and EU:  Incredible Opportunity 

CETA has been received as a positive note in an era of  anti-globalization.     The benefits of the Canadian European free trade pact are being realized as more Canadian companies can offer competitive products and services to European customers.     

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Regarding duty free eligibility under CETA:
Country origin rules are associated with factors used to determine if the product is eligible for preferential duty free treatment under CETA.
 
As mentioned above, CETA rules don’t require a formal certificate in order to obtain tariff benefits. A declaration on the invoice or any other commercial document accompanying the shipment is enough.
 
The CETA country of origin declaration has a specific wording, which is fairly straight forward (check with up to date regulations before shipping).
 
Required CETA country of origin declaration can include the following:
The CETA origin declaration to  (EU Country)  from Canada wording must include the following wording. Footnotes are provided for explanation (but do not meant to be included in the required wording).
 
The origin declaration, the text of which is given below, must be completed in accordance with the footnotes (see below).
(Period: from___________ to __________(1))
The exporter of the products covered by this document (customs authorization No ...(2)) declares that, except where otherwise clearly indicated, these products are of ...(3) preferential origin.
…………………………………………………………….............................................(4) (Place and date)
...……………………………………………………………………..............................(5) (Signature and printed name of the exporter)
___________________
 
CETA Footnotes for shipping E.U. from Canada duty fee
These notes are used to explain the fields required above. They do not have to be included in the actual origin statement.
(1)   When the origin declaration is completed for multiple shipments of identical originating products within the meaning of Article 19.5, indicate the period of time for which the origin declaration will apply. The period of time must not exceed 12 months. All importations of the product must occur within the period indicated. Where a period of time is not applicable, the field can be left blank.
(2)   For EU exporters: When the origin declaration is completed by an approved or registered exporter the exporter's customs authorization or registration number must be included. A customs authorization number is required only if the exporter is an approved exporter. When the origin declaration is not completed by an approved or registered exporter, the words in brackets must be omitted or the space left blank. For Canadian exporters: The exporter's Business Number assigned by the Government of Canada must be included. Where the exporter has not been assigned a business number, the field may be left blank.
(3)   "Canada/EU" means products qualifying as originating under the rules of origin of the Canada-European Union Comprehensive Economic and Trade Agreement. When the origin declaration relates, in whole or in part, to products originating in Ceuta and Melilla, the exporter must clearly indicate the symbol "CM".
(4)   These indications may be omitted if the information is contained on the document itself. (5)   Article 19.3 provides an exception to the requirement of the exporter's signature. Where the exporter is not required to sign, the exemption of signature also implies the exemption of the name
 

 

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  • European continental Parcel delivery and logistics for e-commerce
  • Canada Delivery for European e-commerce
  • High volume parcel import to the USA and Canada

 

 

 

 

Written by Tim Byrnes