What is CETA?
The Comprehensive Economic and Trade Agreement (CETA) is a free trade agreement between the EU and Canada. Eliminating 98% of the tariffs between Canada and the EU, CETA came into effect on 21 September 2017.
CETA addresses more than tariffs on cars, farm products and other goods. It also creates common rules covering a broader array of trade activity, including services, government contracting, intellectual property and the resolution of disputes.
CETA is expected to increase the bilateral exports and imports between EU and Canada by at least 8% annually, amounting to approx. €12 billion (USD 14bn) per year in additional two-way trade by 2030, split more or less evenly between the two parties. Half of the increase will materialise in the first year of implementation.
(Source: The European Commission)
Barely a week old, and Canada’s free trade deal with Europe shaking up the business of shipping seafood across the Atlantic. All cargo space on airlines to Europe is filled – with lobsters in unprecedented numbers lining up for a seat.
Overnight, the 8% tariff on lobsters heading from Canada to Europe dropped to zero, when the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) came into effect on 21 September.
“On day one, the benefits were remarkable,” says François-Philippe Champagne, Canada’s Minister of International Trade. “Some EU tariffs used to be as high as 25%, making the prospect of exporting unprofitable. That is no longer the case with the tariff elimination under CETA.”
Trade is heating up
And lobsters are only the beginning. With CETA, the tariffs on 98% of all commodities have dropped to zero, affecting more than 9,000 products including agricultural, seafood and industrial products. Consequently, Canadian-EU trade is set to receive an 8% boost.
A few weeks later the effects were also felt at Ray-Mont, a company that gathers agricultural products from the heart of the North American continent at its facilities by the coasts and repacks them in shipping containers.