Trade Agreement EU Canada: What You Need to Know
The Comprehensive Economic and Trade Agreement (CETA) is a free trade agreement between the European Union (EU) and Canada that entered into force provisionally in 2017. The trade agreement aims to increase trade and investment flows between the EU and Canada, while also addressing regulatory barriers and promoting sustainable development.
Here are some key aspects of the trade agreement EU Canada that you should be aware of:
Tariffs and Market Access
CETA eliminates most tariffs on goods traded between the EU and Canada, which will save businesses billions of dollars in duties. It also provides greater market access for a wide range of products and services, such as agricultural products, processed foods, pharmaceuticals, and financial services.
Rules of Origin
To enjoy tariff-free trade under CETA, products must meet certain rules of origin requirements. These rules determine the amount of content that must come from the EU or Canada in order for a product to be considered “originating” and therefore eligible for preferential treatment.
CETA includes provisions to protect investments and promote investor confidence. It establishes a modern, transparent, and predictable framework for investment protection, including a dispute settlement mechanism to resolve investment disputes between investors and states.
CETA aims to reduce regulatory barriers and enhance regulatory cooperation between the EU and Canada. It establishes a Regulatory Cooperation Forum to facilitate dialogue and exchange of information on regulatory matters, as well as a Joint Committee to oversee the implementation of the agreement.
CETA opens up public procurement markets in the EU and Canada to each other`s businesses, which will create new opportunities for trade and investment. It also improves transparency and fairness in public procurement procedures, and includes provisions to promote environmental and social objectives.
CETA includes a chapter on sustainable development that aims to ensure that economic growth is accompanied by social and environmental progress. It promotes the protection and enforcement of labour rights and environmental standards, and encourages sustainable development through trade and investment.
Overall, the trade agreement EU Canada is a comprehensive and ambitious agreement that has the potential to bring significant benefits to businesses, consumers, and workers in both the EU and Canada. However, it also raises concerns about the impact on regulatory sovereignty and public services, as well as the potential for disputes to arise in areas such as investment protection and public procurement.
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