What The Future Of Trade Will Look Like In Canada?
Courtesy of the Government of Canada
The New Canada-European Union (EU) Comprehensive Economic and Trade Agreement (CETA) will benefit Canadians by creating new job opportunities and help to expand the middle class. CETA is a modern and progressive trade agreement that will generate billions of dollars in bilateral trade and investment. It will provide both greater choices and lower prices to consumers. When CETA is fully implemented, the EU will have eliminated tariffs by 99%.
The new Progressive Trade Agreement will enhance the middle class:
This marks the beginning of a new era in trade agreements. The free trade agreements will also promote and protect cultural diversity and strengthen the middle class while helping to ensure that everyone can participate in it and benefit. It is a progressive free trade agreement that covers virtually all sectors and aspects of Canada-EU trade which will eliminate and/or reduce barriers.
Canada’s strategic plan for long-term economic growth: The path to growth is through CETA:
It is expected that more EU companies will invest in Canada in order to take advantage of Canada’s preferential access to the United States and other markets, while non-EU companies will invest in Canada so as to take advantage of our preferential access to both the EU and the United States. Investment provisions in CETA will provide Canadian investors and their investments with greater certainty, stability, transparency and protection which will guarantee more favourable and secure access to the EU market.
The value of bilateral trade in goods between the EU and Canada was €63.5 billion in 2015. Machinery, chemicals and transport equipment dominate the EU’s exports of goods to Canada. Pearls and precious metals as well as mineral products dominate the imports of goods from Canada. Machinery and chemicals also constitute an important part of the EU’s imports from Canada. The value of bilateral trade in services between the two partners amounted to €27.2 billion in 2014. European investors held investments worth €274.7 billion in Canada while Canadian direct investment stocks in the EU amounted to almost €166 billion in 2014.
Rt. Honourable Justin Trudeau, Prime Minister of Canada declared that:
“The signing of CETA is a historic occasion. This modern and progressive agreement will reinforce the strong links between Canada and the EU, and create vast new opportunities for Canadians and Europeans alike—opening new markets for our exporters, offering more choices and better prices to consumers, and forging stronger ties between our economies.”
This will allow Canada to have access to the EU’s 500 million consumers. Canadian workers will significantly benefit from its’ increased access to this 28-country market which generates $20 trillion in annual economic activity. Stronger economic relationships are the single best tool for Europe and Canada to improve our citizens’ standards of living. Canadian companies will grow and thrive in Europe. The agreement is fair. CETA will create new opportunities for farmers which will translate to lower prices for all consumers.
CETA is the ‘blueprint’ for future new trade agreements:
CETA, http://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/ceta-aecg/chapter_summary-resume_chapitre.aspx?lang=eng#a13), will encourage more investment in Canada. European firms will have new advantages when it comes to obtaining investment projects approved in Canada. This new agreement will make it easier for company staff and other professionals to work on both sides of the Atlantic and for firms to relocate their staff, temporarily, between the EU and Canada. In turn, this will help European companies to manage their operations in Canada. Similarly, it will also be easier for other professionals to temporarily supply legal, accounting, architectural and/or other similar professional services. European officials say that it will eliminate 99% of tariffs and will ultimately save European companies €500 million ($548 million) per year.
CETA gives Canadian service providers greater market access than the EU has ever granted to any of its’ other trading partners. This means significant opportunities, in the EU market, will boost Canadian businesses’ bottom financial line. In 2015, the EU imported $16.5 billion of goods/services from Canada. The EU is currently Canada’s second largest source of foreign direct investment with an estimated stock valued at $180.9 billion. Europeans will have easier access to investments in Canada, and vice versa. It will be easier for professionals like accountants, engineers and architects to offer their services between the two markets. The EU is also Canada’s second most important source of new technologies and a key partner in science and technology cooperation: (http://www.canadainternational.gc.ca/eu-ue/policies-politiques/trade_invest-commerce_invest.aspx?lang=eng&_ga=1.143469872.486434552.1488327711).
A new standard for global trade!
On February 15th, 2017, the European Parliament voted in favor of the Comprehensive Economic and Trade Agreement (CETA) between the EU and Canada. This concludes the ratification process of this deal at the EU level.
Hon. Chrystia Freeland, P.C., M.P., Minister of International Trade declared: “New economic opportunities abroad mean growth here at home and more jobs for middle-class Canadians. Over the past year, I have met representatives of many businesses that are benefiting from our progressive trade agenda and policies, and in 2017, we intend to expand on these opportunities so Canadian businesses can grow and succeed.”
“I’ve had an excellent experience interacting with the Trade Commissioner Service in Canada and abroad. Their professional and prompt service has helped Team Eagle access programs, such as CanExport, to grow our business reach.” Paul Cudmore, General Manager and COO, Team Eagle
“Canada is a great brand in foreign markets. We have something unique to offer.” Eli Gershkovitch, Owner, Steamworks Brewing Company
In short, the future is looking bright for Canadian entrepreneurs and businesses especially those involved in importing and exporting of goods and services. As a Canadian myself, I feel very privileged to live here and have the life style and safety it provides.
Be sure to follow my free analysis on the stocks, commodities and the Canadian market at: www.TheGoldAndOilGuy.com