The new Canada-European Union Comprehensive and Economic Trade Agreement (CETA) will bring benefits to businesses and citizens on both sides of the Atlantic.
CETA, which came into effect on Sept. 21, will open doors for Nova Scotia companies who will be able to take advantage of tariff elimination on their exports, new opportunities to win government contracts in the European Union (EU) and improved access to supply services.
“We know increasing our exports is a key factor in growing our economy and this agreement will provide exporters with more opportunity,” said Premier Stephen McNeil. “Nova Scotia has an abundance of world-class products and services and I expect CETA will enhance the success of those who are exporting now, and encourage others to start exporting.”
With CETA in effect, tariffs are now removed from 98 per cent of tariff lines, including products such as live lobster, frozen and fresh scallops, and aircraft parts. Once other tariff lines are phased out over the next seven years, the EU will have eliminated tariffs on 99 per cent of its tariff lines.
The EU is the world’s largest market with more than 500 million people in 28 countries, with a combined GDP of $22 trillion.
CETA covers all aspects of Canada’s broad trading relationship with the EU, including goods, services, investment, government procurement and regulatory cooperation. Some aspects of the agreement will have deferred implementation, such as the investor-state dispute provisions.
Government has taken steps to ensure that Nova Scotia companies are well informed about CETA and prepared to take advantage of opportunities flowing from this agreement.
Information sessions have been held to help companies better understand opportunities in the EU and additional sessions are planned over the fall and winter.
The EU is Nova Scotia’s third-largest goods export market (8 per cent) after the United States (70 per cent) and China (10 per cent). In 2016, exports from Nova Scotia to the EU stood at $406 million. The province’s top export goods to the EU are fish and seafood, blueberries, wood products, instruments and apparatus, aircraft parts and parts of machinery.