Elimination of tariffs under CETA to add $1.4bn to Canadian exports to Europe
This is according to new Conference Board of Canada publication, Stronger Ties: CETA Tariff Elimination and the Impact on Canadian Exports.
Despite its recent economic troubles, including the deepening financial crisis in Greece, the EU is a more than $17 trillion market with high income customers.
Eliminating duties under the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) will result in about $1.4 billion being added to Canada's merchandise exports to the EU by 2022.
The potential gains available to Canadian firms extend beyond elimination of tariffs, to the reduction of non-tariff barriers and liberalization of services trade and investment.
To take full advantage of CETA, Canadian companies will need to seek out opportunities and adapt their offerings to the highly competitive EU market.
Canada's merchandise exports to the EU totaled about $33 billion in 2013. Precious stones and metals (including pearls, coins and jewelry) accounted for about $10 billion of this total.
Canadian companies already pay relatively low tariffs on exports to the EU. However, tariffs remain high in sectors such as food, beverages and tobacco (9 percent), motor vehicles and parts (6.5 percent) sectors, agriculture (almost 5 percent, and chemicals, rubber, and plastics (almost 5 percent).
Not surprisingly, these sectors are expected to benefit the most from these (all figures are in 2007 dollars). ■