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