home Finance CETA: The Free Trade Agreement of Canada and Europe in Six Points

CETA: The Free Trade Agreement of Canada and Europe in Six Points

The European Parliament will vote Wednesday on the Economic Agreement with Canada, which has been negotiated over five years. This text, which aims to increase trade by 25%, could be applied very quickly. It plans to lower tariffs. With some notable exceptions.

What is CETA?

The economic global and commercial Agreement known as CETA (Comprehensive economic and trade agreement) signed in late October is a bilateral trade treaty between the EU and Canada. It aims to increase by 25% the exchanges between the two parties, which would result in an increase of 12 billion euros of European gross domestic product (less than 1%, however, the wealth produced by the twenty-eight).

When will enter into force?

The vote on Wednesday on the European Parliament would allow the application in the month of April, a large part of the text, except for some contentious issues, without waiting for the ratification of 38 national and regional parliaments.

What it provides?

Upon entry into force, CETA will decrease 98%  of products to zero tariffs. This is the case of forest products, currently taxed at 1.2%, chemical and plastic products (4.9%), manufactured goods (1.8% and 3.3%), aluminum (4 3%), nickel (3.3%) … For other products, such as the automotive sector, it will take three, five or seven years. Ditto for seafood (some of which are currently taxed up to 20%) and some agricultural products (12% for cherries, 9% for apples, 17% cranberries …).

What will Ceta mean for Europe and Canada
Canada is only the twelfth commercial partner of the European Unio

What about agriculture?

90% of tariffs will be eliminated immediately. Poultry meat and eggs are however excluded from the agreement. As beef in the Canada to EU direction, but a duty free quota shall apply. Dairy products will be excluded in the direction of the EU to Canada. Unless a contingent of more than 30,000 tonnes. Products banned in Europe, such as chicken with chlorine, beef hormones and GM products will continue to be.

And designations of origin?

CETA provides for recognition in Canada of 145 non-wine AOC on 1500 as the European Union account. Twenty-eight French cheeses are protected, such as Camembert and Pont-bishop. Brie de Melun is not protected as it is the case of brie de Meaux.

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