Countries and regions
The Canada-EU summit on 26 September 2014 in Ottawa marked the end of the negotiations of the EU-Canada trade agreement (CETA). The agreement will remove over 99% of tariffs between the two economies and create sizeable new market access opportunities in services and investment.
The text of the agreement will now undergo a legal scrubbing followed by a translation into all official languages of the EU. At a later stage, the agreement will need to be approved by the Council and the European Parliament.
For more details read the factsheet "Trade Negotiations Step by Step"
Proposal for a Regulation implementing the EU-Canada Comprehensive Economic and Trade Agreement (CETA) accompanying the decisions authorising the signature of and concluding the CETA
- In 2014 Canada was the EU's 12th most important trading partner, accounting for 1.7% of the EU's total external trade. In 2014 the EU-28 was Canada's second most important trading partner, after the U.S., with around 9.4% of Canada's total external trade in goods.
- The value of bilateral trade in goods between the EU and Canada was €59,1 billion in 2014. Machinery, chemicals and transport equipment dominate the EU's exports of goods to Canada. Pearls and precious metals, and mineral products dominate the imports of goods from Canada. Machinery and chemicals also constitute an important part of the EU's imports from Canada.
- Trade in services is an important area of the EU-Canada trade relationship. The value of bilateral trade in services between the two partners amounted to €27,2 billion in 2014. Examples of often traded services between Canada and the EU are transportation, travel, insurance and communication.
- The investment relationship is equally highly important. In 2013, European investors held investments worth €225.2 bn in Canada while Canadian direct investment stocks in the EU amounted to almost €117.0 bn.
EU-Canada "trade in goods" statistics
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EU-Canada "trade in services" statistics
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Foreign direct investment
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EU and Canada
EU-Canada trade negotiations
The negotiations for a Comprehensive Economic and Trade Agreement concluded among others, that:
- most, if not all industrial, agricultural and fisheries duties will be eliminated when the agreement enters into force;
- the EU and Canada will foster closer contacts in the field of technical regulations;
- Canada will recognise a list of EU car standards, from which EU car exports to Canada will benefit;
- EU companies will have better access to key Canadian sectors such as financial services, telecommunications, energy and maritime transport;
- and many more issues
As a strong supporter of free trade, Canada has always been a natural ally and important trade partner for the EU. Strengthening the economic and trade relationship with Canada is therefore an important priority.
Once implemented, the agreement is expected to increase two-way bilateral trade in goods and services by 23% or €26 billion, fostering growth and employment on both sides of the Atlantic.
The CETA negotiations were launched in May 2009 and the content of the CETA and its general modalities were agreed in June 2009.
The EU-Canada Joint Study of October 2008 showed that both the EU and Canada can expect to gain from a closer bilateral trade relationship. A future agreement would contribute to economic growth and the creation of jobs. It would have several benefits, in particular:
- The economic model of the Joint Study predicts annual real income gains of approximately €11.6 billion for the EU and €8.2 billion for Canada within seven years following the implementation of an agreement.
- Total EU exports to Canada are estimated to go up by 24.3% or €17 billion, while Canadian bilateral exports to the EU are predicted to increase by 20.6% or €8.6 billion.
- 50% of the total expected gains for the EU are related to trade in services, 25% to the removal of tariffs and the remaining 25% of the GDP gains can be reached by the dismantling of Non-tariff barriers (NTB).
- The benefits from the Agreement in the area of NTBs are estimated to result in a €2.9 billion gain for the EU and €1.7 billion for Canada.
- In the service sector new opportunities will arise both for European and Canadian companies. Transparency as well as legal certainty for operators will be enhanced.
- Companies on both sides will benefit from the disciplines on investment protection which are currently being negotiated, making investment even safer.
- An agreement would bring the investment protection regimes on both sides to a comparable level.
- Both countries will gain from increased access to the respective public procurement markets. All sub-federal levels of government in Canada will be open to European companies to engage in tenders.
Pending the entry into force the agreement, current trade relations with Canada are guided by a Framework Agreement for Commercial and Economic Cooperation in force since 1976. The EU and Canada meet annually in bilateral summits and in the Joint Cooperation Committee to review a range of issues relating to EU-Canada economic and trade relations.
Over the years, a number of additional bilateral agreements designed to facilitate EU-Canada trade have been concluded.
- In 1997 an agreement was signed to foster closer cooperation between EU and Canadian customs administrators.
- The Veterinary Agreement of 1999 aimed at improving bilateral trade in live animals and animal products.
- The most recent agreements are the Wine and Spirits Agreement (2003), the Civil Aviation Safety Agreement (2009) and the Comprehensive Air Transport Agreement (2009)
Trading with Canada
- Importing into the EU from Canada
- EU trade defence measures on imports from Canada
- Exporting from the EU to Canada
- The EU is present on the ground in Canada
- Trade relations are part of the EU's overall political and economic relations with Canada
- Canada is a member of the World Trade Organisation
- The EU has analysed the social, environmental and economic impacts of a potential trade agreement with Canada in a Sustainability Impact Assessment (SIA)