British producers of machinery, electrical equipment, automobiles, and pharmaceuticals will see import tariffs of up to 9.5% on their trade with Canada slashed.
In addition to eliminating 99% of duties on imported British goods, the agreement eases the export of services and the access of British professionals to work in Canada.
Britain exports goods worth £4.5 billion (2015) to Canada. With 10,570 companies already exporting a wide variety of products from baby wipes to aircraft parts and supporting over 240,000 jobs, the UK economy is in the best position to benefit from the free trade deal. The UK is ahead of both Germany and France which have 10,464 and 9,732 companies respectively selling goods and services to Canada and significantly fewer jobs benefitting from that trade – 141,000 for Germany and 77,000 for France, according to data from a web tool on CETA published by the European Commission.
European Commission President Jean-Claude Juncker said: "This agreement encapsulates what we want our trade policy to be - an instrument for growth that benefits European companies and citizens, but also a tool to project our values, harness globalisation and shape global trade rules. Now it's time for our companies and citizens to make the most out of this opportunity and for everyone to see how our trade policy can produce tangible benefits for everyone"
The agreement especially benefits smaller companies who make up 79% of EU exporters to Canada and can least afford the cost of red tape. Small businesses will save time and money, for example, by avoiding duplicative product testing requirements, lengthy customs procedures and costly legal fees.
CETA creates new opportunities for European farmers and food producers, while fully protecting the EU's sensitive sectors. The EU has further opened its market for certain competing Canadian products in a limited and calibrated way, while securing improved access to the Canadian market for important European export products. Those include cheese, wine and spirits, fruit and vegetables, and processed products. CETA will also protect 143 EU "geographical indications" in Canada, high quality regional food and drink products.
The provisional application of CETA on 21 September follows its approval by EU Member States and by the European Parliament. It will only enter into force fully and definitively when all EU Member States have ratified the agreement.
CETA will be fully implemented once all EU Member States ratify the deal according to their respective constitutional requirements. At the time CETA will take full effect, a new and improved Investment Court System will replace the current investor-state dispute settlement (ISDS) mechanism that exists in many bilateral trade agreements negotiated in the past by EU Member States' governments. The new mechanism will be transparent and not based on ad hoc tribunals.
The UK will continue to reap the benefits of free trade between the EU and Canada while it remains a member of the European Union.
European Commission press release
CETA impact on the UK
CETA in your town
Full text of CETA