CETA (Comprehensive Economic and Trade Agreement) is set to save EU businesses €590 million every year in Canadian custom duties over time.
The 21st September onwards sees the removal of duties on 98% of products that the EU trades with Canada.
Most of the agreement is now in force on a provisional basis, following the green light given to the deal which was signed between EU and Canada on 30th October 2016.
CETA is also set to assist with competition between EU exporters.
The agreement is set to benefit smaller companies, in terms of saving time and money.
The official statement reveals “The agreement will especially benefit smaller companies who can least afford the cost of the red tape involved in exporting to Canada.”
CETA avoids duplicative product testing requirements, lengthy customs procedures and costly legal fees
New opportunities are set to arise for European farmers and food producers.
Improved access will be gained for cheese, wine and spirits, fruit and vegetables and processed products.
According to NFU, the total TRQ for cheese that can be exported to Canada will be18,500 t.
35,000 t for fresh beef (hormone free), 15,000t for frozen beef ( hormone free), 75,000t for pork ( ractopamine free) and 8,000 t for sweetcorn.
CETA protects products including beef, pork, Sweetcorn-with limited, tariff-free quotas, poultry and eggs-by not opening its market.
CETA protects 143 Geographical Indications (GIs).
All 500 million EU Consumers are also set to benefit, offering a greater choice and lowered prices.
In terms of EU exports to Canada each year, Machinery accounts for €8.3 billion, chemicals for €5.9 billion and food and drink €3.4 billion.
The agreement is set to be permanently introduced once it receives full approval from EU Member States, expressed in the Council and by the European parliament.
See the full overview here.
The Guardian has revealed that CETA is “just as dangerous as TTIP”.
“ It’s a threat to not only our food standards, but also the battle against climate change, our ability to regulate big banks to prevent another crash and our power to renationalise industries” The Guardian stated.
Through “regulatory cooperation” standards including food safety, workers’ rights and environmental regulation are set to be reduces as they are “obstacles to trade”.
CETA also contains a new legal system only open to foreign corporations and investors, The Guardian added.
From a financial perspective, governments would experience impaired control over banks and financial markets.
The Guardian went on to reveal that through something known as “ratchet clause”, current levels of privatisation would be “locked in” on any services not specifically exempted and would mean that conditions of the agreement would be breached if the governments in either country wanted to bring specific services back into public ownership.