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TRANSCRIPT
EXPORT ESSENTIALS
CETA: Benefit from Canada’s Free
Trade Agreement with the EU
Presented by: Allison BoultonExport Navigator Program ManagerJune 28, 2017
Introduction, Agenda & Goals 10 minutes
Getting to Know You 10 minutes
1. Free Trade Agreements & CETA: Export Navigator 20 minutes
2. CETA Overview: Global Affairs Canada (GAC) 20 minutes
3. CETA Sector Highlights: Ministry of International Trade (MIT) 20 minutes
Final Thoughts/Q&A 10 minutes
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Agenda
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At the end of the webinar, participants will:
1. Understand the key terms of CETA
2. Learn how and when the agreement will come into force
3. Learn how to access the opportunities CETA provides
Goals
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Introduce Yourself:
1. Your name
2. What B.C. community are you from?
3. What product or service are you looking to export to the EU?
Activity – Getting to Know You
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• Goal is to open markets for consumers and businesses in both countries and increase trade by reducing barriers
• Covers most trade in products and services between countries
– Includes intellectual property and investment
• EPA (Economic Partnership Agreement) and FTA mean the same thing
Free Trade Agreements (FTA’s)
Source: http://international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/agreements_type-type_accords.aspx?lang=eng
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Q: What FTA’s are you familiar with?
Agreements Around the World
Source: https://edc.trade/market-diversification-
opportunities/?campaign=829719357&device=c&keyword=%20canada%20%20free%20%20trade%20%20agreements&adposition=1t1&creative=1968661
20171&gclid=CLyStJngu9QCFYFnfgodrDkJTQ&utm_referrer=https://www.google.ca/
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Agreements Around the World• Interactive Tool – Find agreements by Country
Source: https://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/index.aspx?lang=eng
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• CETA: Canada and European Union (EU) Comprehensive Economic and Trade Agreement
• The EU is the world’s second largest economy and Canada’s second largest trading partner after the United States
• Will open new markets in the EU for our exporters
• Addresses everything from tariffs to product standards, investment, professional certification and many others
What is CETA?
Source: http://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/ceta-aecg/overview-apercu.aspx?lang=eng
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How CETA is different ?
Source: http://www.edc.ca/EN/Knowledge-Centre/infographics/Pages/ceta-infographic.aspx
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• CETA’s most visible benefit is the elimination of tariffs (duties)
– Tariffs are essentially taxes levied at the border that have the effect of increasing the costs to consumers of imported goods.
• Tariffs subject to a phasing out: some fish and seafood products, grains, and passenger vehicles
• Once CETA is fully implemented* (seven years after entry into force) approximately 99 percent of the EU’s tariff lines will be duty-free
*full implementation is after all Member States ratify CETA
Tariffs
Source: http://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/ceta-aecg/overview-apercu.aspx?lang=eng
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CETA includes commitments that aim to:
• Simplify and, where possible, automate border procedures
• Respect the privacy of company information collected for customs purposes
• Provide an impartial and transparent system for addressing complaints about customs rulings and decisions
CETA’s commitments
Source: http://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/ceta-aecg/overview-apercu.aspx?lang=eng
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• Country of Origin - where are the inputs sourced from?
• Proof of Origin – prove item was made or has “sufficient production” in Canada (or EU) so will qualify for CETA tariff preferences
• The Single Administrative Document (SAD) is the common import declaration form for all EU countries and is usually completed by the importer or their agent.
• Additional documents must also be presented to customs authorities: – commercial invoices
– transport documents (bills of lading),
– import licences
– inspection certificates (such as health, veterinary or plant-health certificates)
Documents
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Trade Shows
AGRICULTURE AND PROCESSED FOODSCologne, GermanyOctober 7-11, 2017 >Canada will have a pavilion at Anuga, a trade fair for the food and beverage industry. The event will feature a range of food, drinks and organic products, as well as innovations in equipment and technology for the food service and catering market. The Canadian Trade Commissioner Service (TCS) can provide on-the-ground assistance and advice on business development in the region. TCS website.Contact: Nora Gruetters, Canadian Trade Commissioner Service in Germany.
Source: http://tradecommissioner.gc.ca/events-evenements/international.aspx?lang=eng
AUTOMOTIVEStuttgart, GermanyOctober 9-11, 2017 >Canada will have a pavilion at two co-located international trade shows: EVS30 featuring an e-mobility, infrastructure and integrative transportation showcase, and f-cell and BATTERY+STORAGE focussing on areas such as electricity, transport and fuel cell technologies. The Canadian Trade Commissioner Service (TCS) can provide on-the-ground assistance and advice on business development in the region. TCS website.Contact: Fanny Bousquet, Canadian Trade Commissioner Service in Germany.
DEFENCE AND SECURITYKielce, PolandSeptember 5-8, 2017 >The Canadian Trade Commissioner Service (TCS) will have a booth at MSPO Kielce 2017, an international trade show for the defence industry. Canadian companies will have opportunities to attend business-to-business meetings, gain market insight, and learn about industry trends. The TCS can provide advice on business development in Poland. TCS website.Contact: Marie-Pier Brunelle, Canadian Trade Commissioner Service in Poland.
A great way to exhibit your product or service:
The EU is Canada’s 2nd largest trade and investment partner
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10
20
30
40
50
60
70
80
90
100
Merchandise Services
Canada-EU Bilateral Trade, 2015
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0
25
50
75
100
125
150
175
200
225
250
CDIA FDI
Canada-EU Bilateral Investment, 2015 (Known Stock)
Source: CETA Secretariat, DFATDData: Statistics Canada
$ Billions $ Billions
IM
EX
IM
Source: CETA Secretariat, DFATDData: Statistics Canada
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Creating a Strategic Advantage for Canada
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The EU is the world’s second largest integrated economy, with more than 500 million consumersand a $21 trillion GDP.
Source: CETA Secretariat, GACData: IMF, WEO
* Excludes Canada** Includes the UK
EU**23%
NAFTA*27%
ROW51%
World GDP*, 2015
Clear and favourable rules of origin:
Trade in Goods
• Comprehensive tariff elimination across all sectors• 98% of all EU tariff lines eliminated on day one of CETA’s entry into force• Duty-free access across 99% of all tariff lines once fully implemented
• Reflects the real-world sourcing patterns of Canadian and EU companies while encouraging production to take place in Canada or the EU
• Advance rulings on the origin and tariff classification of products• Automated border procedures will be implemented where possible
Customs and trade facilitation:
Ambitious tariff elimination:
Non-Tariff Barriers & Regulatory Cooperation
facilitating recognition of equivalency in technical regulations to reduce manufacturing costs for exports;
establishing a protocol on conformity assessment that will allow Canadian companies to have their products tested and certified for the EU market in Canada;
encouraging Canadian and EU standard-setting bodies to cooperate on joint initiatives; and
creating mechanisms where trade irritants can be discussed with the goal of speedy resolution.
CETA seeks to reduce the trade distorting impact
of non-tariff barriers by:
Government Procurement
Entity / Procurement Type Goods ServicesConstruction
Services
EU-level institutions / Member State government entities *
Improved Access
Improved Access
Improved Access
Regional government entities **Improved
AccessImproved
AccessImproved
Access
Local government entities and bodies governed by public law
New Access New Access New Access
Utilities New Access New Access New Access
Procurement funded by EU cohesion funds at local government level
New Access New Access New Access
* Removal of reciprocity notes** Lowering of thresholds
CETA is expected to open doors to the EU’s $3.3 trillion government procurement market:
Trade in Services
CETA commitments on trade in services is forward-looking. These provisions mean Canada’s access will continually improve over time and will not backslide:
All service sectors are subject to CETA obligations unless explicitly listed as reservations in the Annexes.
Negative List Approach:
Future regulatory or legal changes that make it easier for Canadian service suppliers to access the EU market are automatically locked in under CETA.
If the EU offers better treatment to another country under an FTA, Canada would automatically receive the same treatment.
Ratchet Mechanism:
MFN Treatment:
Canadian service providers in sectors covered by CETA will be treated the same way as service providers from the EU.
National Treatment:
Temporary Entry
CETA provides greater certainty and predictability
for Canadian service providers
• CETA’s temporary entry provisions facilitate trade by improving labour mobility for a wide range of business persons and business activities.
• CETA establishes a framework for the mutual recognition of professional qualifications as well as a Chapter on domestic regulation.
• CETA does not impact permanent employment or migration.
Investment
• Canadian and EU investors will benefit from the predictable investment climate established under CETA, which includes:
- treatment no less favourable than that granted to their domestic counterparts or any other investor from a third country
- investor protections related to treatment of investors/covered investments, expropriation and transfers; and
- a recourse for breaches of investment protections
• Furthermore, the net benefit review threshold under the Investment Canada Actwill be raised to $1.5 billion for EU investments following CETA’s entry into force.
• Access to the EU market, along with existing access to the U.S. market, is expected to attract new volumes of investment to Canada.
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CETA provisions for the clean-tech sector
• EU market opportunities• Tariffs on Canadian clean-tech products will be eliminated (between 2-6 per
cent)• Labour Mobility• Government Procurement• Regulatory Cooperation and Conformity Assessment
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CETA provisions for the fish and seafood sector
• EU market opportunities• Tariffs on Canadian fish and seafood products will be eliminated (average
of 11%, up to 25%)• Rules of Origin• Investment• Sanitary and Phytosanitary Committee
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CETA provisions for the forestry sector
• EU market opportunities• Current EU tariffs for forest products range from 2% to 10%, all will be
eliminated• Bilateral Dialogue on Forest Products• Trade in Services• Regulatory Cooperation and Conformity Assessment• Government Procurement
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A Learning Series to Grow Your Sales Beyond B.C.
Tues, July 18 (9:00 to 10:30)
Preparing for International Travel & Tradeshows
Thurs, September 14 (1:00 to 2:30)
The New Canadian Free Trade Agreement – How to Trade with
other Provinces
Tues, September 26 (9:00 to 10:30)
Smart Global Money - Currencies, Credit, & Cash
*June 15th: Introduction to the Export Process – recording
available by request!
Export Essentials
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Allison Boulton
Program Manager, Export Navigator
Email: [email protected]
Web: http://www.britishcolumbia.ca/export/export-navigator/
For More Information Contact:
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USEFUL LINKS:
• Free Trade Agreements (FTA’s): http://international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/agreements_type-type_accords.aspx?lang=eng
• Map of FTA’s: https://edc.trade/market-diversification-opportunities/?campaign=829719357&device=c&keyword=%20canada%20%20free%20%20trade%20%20agreements&adposition=1t1&creative=196866120171&gclid=CLyStJngu9QCFYFnfgodrDkJTQ&utm_referrer=https://www.google.ca/
• Interactive Tool to find Agreements: https://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/index.aspx?lang=eng
• CETA: http://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/ceta-aecg/overview-apercu.aspx?lang=eng
• Exporting to the EU: A guide for Canadian business: http://tradecommissioner.gc.ca/european-union-europeenne/market-facts-faits-sur-le-marche/0000256.aspx?lang=eng
• Documents for Customs: http://exporthelp.europa.eu/thdapp/display.htm?page=rt%2frt_DocumentsForCustomsClearance.html&docType=main&languageId=en
• Trade Events: http://tradecommissioner.gc.ca/events-evenements/international.aspx?lang=eng, http://www.agr.gc.ca/eng/industry-markets-and-trade/agriculture-and-food-trade-show-service/?id=1410072148325