BRIEF : Canada – European Union Comprehensive Economic and Trade Agreement (CETA)

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Prepared for a meeting of the All-Party Group on EU-US Trade & Investment on 3rd December 2013, Based on Technical Summary of Final Negotiated Outcomes (Canadian government document)


Full elimination of all non-agricultural duties after 7 years. (99.3% of tariff lines for EU at entry into force, 99.6 % for Canada on entry into force.)

Transition periods of 3, 5,and 7 years for sensitive products. (autos, ships some fish for EU and agricultural products).

Canada will provide duty free access for fish and fish products on entry into force.  EU will provide duty free entry for 95.5% of fish tariff lines on entry into force  (Existing tariffs range from 8-20%).

93.6% of EU agricultural tariff lines set at 0% on entry into force. 92.0% of agricultural tariff lines set at 0% for Canada at entry into force.

Some agricultural tariffs to be eliminated immediately.

Duty free and quota free access to EU dairy market.

Duty-free quota access for Canada for beef and pork to EU market.

Regulatory cooperation:

First regulatory cooperation chapter in any Canadian FTA.

Mechanism to foster regulatory cooperation.

Procedures for removal of technical barriers to trade (TBTs)

Provides for acceptance of each other’s tests and certification procedures.

Canada and EU to look at recognizing each other’s SPS certification and testing regimes as equivalent. Aim to finalize equivalency determination within a year.

Services:         (This is the least specific in the Summary)

Recognition of government right to regulate.  Health care, public education, other social services excluded.  Culture excluded.

Binding of future autonomous liberalization.  MFN treatment.

Transparency and predictability of regulatory regimes for services.

Best service access ever from EU in FTA.  First time a negative list approach has been used.

Mutual recognition of professional qualifications.

Temporary entry for essential personnel.  EU Commitments are the most ambitious ever. Reciprocity by sectors, member states.

Investment protection rules:

Clear and detailed rules of procedure to promote efficient resolution of disputes.

New ISDS early mediation rules.

Annex clarifies that non-dscriminatory good faith measures to protect health, safety and the environment do not constitute indirect expropriation

ISDS only on a post establishment basis.

Measures to ensure public transparency.

Monopolies and state owned enterprises:

Disciplines to ensure non-discriminatory operation and in accordance with commercial considerations.

MSEs with public service obligations will have flexibility to serve public interests.

Government Procurement:

Broad coverage at federal, provincial and municipal level.

Ability to give preference to domestic companies maintained under certain conditions.

Access to mass transit and energy in Canada highlighted.

Specific exclusions on both sides.

Intellectual property protection:

Important Canadian commitments on pharmaceuticals.

GI (geographic indicators)  – Canada to offer increased protection for GIs – 179 terms from EU for food and beer if not in conflict with existing Canadian trademarks.

Dispute settlement:

New process for state to state dispute settlement under FTA.

Trade and Sustainable Development:

First time Canada has a chapter on sustainable development in a FTA.

Substantive provisions on laboUr and the environment for first time in Canadian FTA.


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