Canada-EU trade deal
How the historic agreement will affect Canadian industries
CBC News
Last Updated: Oct. 18, 2013
On Oct. 18, 2013, Canada and the European Union signed a tentative deal on a Comprehensive Economic and Trade Agreement (CETA) in an effort to open up markets and drop nearly all import taxes on everything from food to cars to metal and forestry products.
The sweeping agreement will provide Canada with preferential market access to the EU's more than 500 million consumers and to its annual $17 trillion in economic activity. Here is a look at the key aspects of the deal as well as a breakdown of how CETA will potentially benefit each industry sector in Canada.
Highlights of the deal
Breakdown by sector
ADVANCED MANUFACTURING
employs almost
419,000
Canadians
contributed
$42.2B
to Canada's GDP in 2012
CETA will eliminate the vast majority of existing EU tariffs including:
- industrial and power-generating machinery
- agricultural and construction equipment
- aerospace and rail products, (as high as 22 per cent on some products)
- scientific and precision instruments (as high as 22 per cent on some products)
- electrical parts and equipment (as high as 14 per cent)
- medical devices (as high as 8 per cent)
AUTOMOTIVE INDUSTRY
employs over
115,000
Canadians
highly dependent on trade
85%
of auto production exported every year
CETA will eliminate existing EU tariffs:
- passenger vehicles (10 per cent)
- auto parts (as high as 4.5 per cent)
CETA includes flexible 'rules of origin':
- allow for up to 100,000 passenger vehicles to be exported to Europe, a 12.5 fold increase from our current average exports
- allow for the adjustment of the rules of origin to provide additional flexibility in the event that the EU strikes free trade deals with other countries, such as the United States.
CETA encourages 'made inCanada' production:
- grants unlimited preferential treatment to vehicles with higher Canadian content that are exported to Europe.
CHEMICALS AND PLASTICS
employed close to
110,000
Canadians in 2012
contributed
$12.4 B
to the Canadian economy
exports to EU
$2 B
annually with 55% of production exported abroad

CETA will eliminate existing EU tariffs on all chemicals and plastics including:
- inorganic and organic chemicals, as well as resins and plastic packaging (average tariffs of 4.9 per cent)
- plastic floor coverings (from 6.5 per cent)
- chemicals used in photography (from 6 per cent)
- silicon (from 5.5 per cent)
AGRICULTURE AND AGRI-FOOD
employed over
585,000
Canadians in 2012
accounts for almost
3%
of Canada's GDP
exports to EU
$2.5 B
annual average (2010-12)

CETA will eliminate existing EU tariffs:
- average EU tariffs of 13.9 per cent
- almost 94 per cent of EU agricultural tariff lines will be duty-free, including
- durum wheat (up to $190 per ton)
- other wheat (up to $122 per ton)
- oils, including canola oil (3.2 per cent - 9.6 per cent)
FOOD PROCESSING
contributed
$26.5 B
to Canada's GDP in 2012
exports to EU
$536 M
annual average (2010-12)

CETA will eliminate existing EU tariffs on processed foods and beverages
FOREST AND VALUE-ADDED WOOD PRODUCTS
contributed
$20.2 B
to Canada's GDP in 2012
employing about
235,000
Canadians
exports to EU
$1.2 B
annual average (2010-12)

CETA will eliminate existing EU tariffs:
- on all forest products, such as softwood lumber, newsprint, wood pulp, wood panels (average tariffs of 1.2 per cent)
- including those on plywood (7 per cent -10 per cent)
- prefabricated wooded buildings (2.7 per cent),
- particle board and oriented strand board panels (7 per cent)
METALS AND MINERAL PRODUCTS
contributed
$144.1 B
to Canada's GDP in 2012
employing over
387,000
Canadians
exports to EU
$20.4 B
annual average (2010-12)

CETA will eliminate existing EU tariffs, including:
- iron and steel, and the products that are made from them (as high as 7 per cent)
Key exports include gold, nickel, diamonds, aluminum, and iron ore
FISH AND SEAFOOD PRODUCTS
contributed over
$2.2 B
to Canada's GDP in 2012
employing
41,000
Canadians
exports to EU
$400 M
annual average (2010-12)

CETA will eliminate existing EU tariffs:
- average EU tariffs of 11 per cent
- almost 96 per cent of EU tariff lines for fish and seafood products will be duty-free
- 100 per cent of these tariff lines will be duty-free 7 years later
- cooked and peeled shrimp (20 per cent)
- live lobster (8 per cent)
- frozen lobster (6 per cent -16 per cent)
- frozen scallops (8 per cent)
INFORMATION AND COMMUNICATIONS TECHNOLOGY
contributed
$8.3 B
to Canada's GDP in 2012
employing
86,500
Canadians
exports to EU
$1.7 B
annual average (2010-12)

CETA will eliminate existing EU tariffs:
- all ICT products (average tariff of 1 per cent and as high as 14 per cent on certain products)
- parts for visual signalling equipment (from 2.2 per cent)
- optical fibre cables (from 2.9 per cent)
SERVICES
accounted for
70%
of Canada's GDP in 2012 (argest sector in Canada)
employing over
13.6 M
Canadians
exports to EU
$14.5 B
annual average (2010-12)
Sector includes management services; computer and information services; architectural, engineering and other technical services; research and development services; and private education services.

CETA will reduce or eliminate barriers:
- citizenship or residency requirements,
- barriers to temporary entry
- ownership and investment restrictions
CETA will establish preferential access to and greater transparency in the EU services market
INVESTMENT
Direct investment by Canadian companies in the EU totalled
$180.9 B
in 2012 representing 28.5% of Canadian direct investment abroad
Direct investment by European companies in Canada totalled
$171.5 B
in 2012 representing 24.1% of total foreign investment in Canada

CETA's investment chapter will:
- provide Canadian and EU investors with greater certainty, stability, transparency and protection for their investments
- preserve full rights for governments to legislate and regulate in the public interest
- foster greater two-way investment, creating jobs for Canadians
GOVERNMENT PROCUREMENT
Workers in Canada employed in fields such as engineering, architecture and technology
EU's procurement market worth an estimated
$2.7
trillion annually

CETA will:
- give Canadian suppliers of goods and services secure access to EU procurement processes on a preferential basis
- provide significant new export opportunities
- expand and secure opportunities for Canadian firms to supply their goods and services to the EU Commission, Parliament, and Council, the 28 EU member states and thousands of regional and local government entities
Canada - E.U. Comparison
CANADA
35 million
Population of Canada« »
EUROPEAN UNION
500 million
Population of European UnionBy the numbers
28Number of countries in the European Union. |
$1.5 BAnnual value of increased agricultural exports expected by Canadian producers. |
$700 MWhat the EU expects in annual tariff savings (and what Canada would lose in duties). |
20 %The government's estimated increase in bilateral trade as a result of the deal. |
29,000(tonnes) EU cheese allowed into Canada tariff-free annually, up from 13,000, once fully implemented. |
65,000(tonnes) Annual quota for Canadian beef in Europe, up from 15,000, once fully implemented. |
75,000(tonnes) Annual quota for Canadian pork, up from 6,000, once fully implemented. |
100,000Number of cars Canadian automakers will be able to export a year, 12 times the current limit. |
24Number of languages into which the agreement must be translated. |
2(years) Extension of drug patents for brand-name pharmaceuticals. |
5(years) Time elapsed since initial study of a trade deal began. |
2(years) Expected length of time before deal is ratified. |