Canada: The Canada-European Union Comprehensive Economic And Trade Agreement — Part 2

The Government of Canada has released an Overview of how CETA will benefit Canada's key economic sectors and will Open New Markets in Europe. Today, The Canadian Government announced that ministers, members of Parliament, business and industry leaders and other key stakeholders will be holding events across Canada, highlighting the benefits of the CETA. The government also launched a website to draw attention to the benefits of CETA for Canada's small and medium-sized enterprises. The cross-country benefits blitz aims to educate Canadians on how the elimination of 98 per cent of all EU tariffs will lead to increased profits and opportunities from the first day when CETA comes into effect.

CETA, an historic free trade agreement for Canada, is expected to come into effect in 2015 and will cover virtually all sectors of Canada-EU trade . Below are some highlights from Canada's overview of CETA found in Opening New Markets in Europe.

Trade in Goods

CETA addresses tariffs and customs procedures, as well as product certification and technical standards. On the day CETA comes into force, about 98 percent of the EU's tariff lines will be duty-free for Canadian goods. Another 1 percent of tariffs will be eliminated over a period of up to seven years after CETA comes into force.

CETA includes specific rules of origin for all products assuring that only goods made in Canada or the EU will benefit from preferential duty rates. CETA aims to reduce processing times at the border and make the movement of goods between Canada and the EU members less expensive, faster, and more predictable.

Technical barriers ensure that unnecessary or discriminatory regulatory requirements do not diminish the value of new market access. CETA aims to streamline the process for regulations or other requirements on labelling, product testing, and certification, and through regulatory cooperation that will facilitate dialogue between regulatory authorities in Canada and the EU. The agreement will also include a mechanism that will provide for the acceptance by the EU of test results and product certification by designated Canadian bodies.

Investment

Canadian investors in the EU will benefit from greater certainty, stability, transparency and protection. The investor-state dispute settlement process in CETA, like NAFTA Chapter 11, aims to ensure that investors and investments are treated fairly, equitably and no less favourably than domestic or other foreign investors. The investors and their investments will also be protected from discriminatory or arbitrary government actions and will receive compensation for expropriation. The investor-state arbitration mechanism under CETA will allow for greater public participation and transparency compared to the NAFTA Chapter 11 process. CETA will also include provisions to guard against frivolous claims in order to ensure that the process will not be abused.

CETA will protect the Government of Canada's right to use the Investment Canada Act to conduct reviews of high-value investments to ensure that they are of net benefit to Canada. The ministerial decisions on whether to permit investments under the Investment Canada Act, including for national security reasons, will not be subject to CETA's dispute settlement provisions.

Services and Related Matters

CETA covers all cross-border trade in services, subject to specifically excluded fundamental services such as health care, public education and other social services.

The increased transparency in licensing and qualification criteria will facilitate gaining access to the EU market for Canadian service providers. CETA will streamline the development of agreements between Canadian and EU regulatory bodies for the recognition of professional qualifications and it will include substantive and binding provisions on the mutual recognition of professional qualifications, in particular for professional associations, such as accountants, engineers, architects and foresters.

Expanding on existing WTO access, CETA will also facilitate temporary entry for highly skilled professionals and businesspeople, such as engineers and senior managers, to work in the EU. As a result, Canadian firms and independent professionals will have greater certainty when establishing branches in the EU, bidding on EU service contracts and providing installation and maintenance services for goods sold in the EU market.

With respect to telecommunication services, CETA will ensure that all players have fair access to networks and services, and ensure that regulators act impartially, objectively and in a transparent manner. Service providers and investors will benefit from increased transparency and predictability of the regulatory environment and secure, competitive marketplaces.

Canadian financial services providers will enjoy new and better access to the EU market and CETA will encourage financial-sector regulators to communicate with each other to avoid or resolve unnecessary barriers to entry into the financial services sector. CETA will contain dispute settlement provisions specific to financial services.

CETA's competition provisions will make the trading environment fairer and more predictable for Canadian firms, which will ultimately benefit consumers and will encourage fair market competition to protect Canadian businesses and their investors. Businesses engaged in electronic commerce will also benefit from greater certainty, confidence and protection, under CETA.

Government Procurement

Canadian companies will be able to bid on opportunities in the lucrative EU government procurement market. The Agreement applies only to high-value procurement contracts in order to ensure that governments can continue to use procurement to support local development, with a threshold-value for procurement contracts ranging from 130,000 to five million special drawing rights. Certain exceptions are built into CETA's government procurement rules, including exceptions for cultural industries, Aboriginal businesses, defence, research and development, financial services, and services in the fields of recreation, sport and education as well as social and health-care services.

Intellectual Property

CETA addresses copyright issues by providing support for advances in technology and international standards and providing the ability of copyright owners to benefit from their work while at the same time allowing Internet service providers, educators, students and businesses the tools they need to use new technologies in innovative ways.

With respect to the pharmaceutical sector, CETA will provide extended protection for innovators while ensuring that Canadians continue to have access to the affordable drugs they need. CETA reinforces the Government of Canada's commitment to attracting and retaining investments that support high-paying jobs in Canada as well as rewarding innovators and ensuring that Canadians are able to reap the fruits of such innovation. This helps keep Canada as an important destination for research and development and supports Canadians' access to the most innovative medical breakthroughs. Specifically, eight years of data protection will be mandated by CETA. Up to two years of additional patent protection will be granted to innovative pharmaceutical companies to restore patent protection lost due to delays arising from the regulatory approval process. An export exemption for generic companies will be authorized during this period of patent term restoration. Lastly, innovative pharmaceutical companies will be provided a right to appeal Federal Court decisions under the Patented Medicines (Notice of Compliance) Regulations.

CETA will also include a wider recognition of EU geographical indications for foodstuffs, such as certain meats and cheeses.

CETA contains provisions aimed at combatting trade in counterfeit goods in a simple, fair, equitable and cost effective manner.

Dispute Settlement

CETA will provide for a streamlined dispute settlement process. The agreement will provide for the use of an agreed third party to facilitate resolution and minimize costs. These provisions are based on the WTO Dispute Settlement Understanding model with improvements such as the inclusion of a voluntary mediation mechanism. Parties are also free to choose arbitration over mediation. In addition, an accelerated arbitration procedure will also be included in CETA, to facilitate the determination of cases requiring urgent resolution, such as those involving live animals and perishable or seasonal foods.

Sustainable Development, Labour and Environment

CETA will encourage businesses to adopt practices that promote economic, social and environmental objectives and includes a commitment to review, monitor and assess the impact that the Agreement's implementation has on sustainable development in both Canada and the EU.

Canada and the EU have also committed to protect and respect the rights of workers, by seeking high levels of labour protection, enforcing labour laws and not waiving or derogating from these laws in order to promote trade or attract investment.

CETA's environment provisions reinforce Canada's commitment to strengthen the link between trade, investment and the environment. Thus, CETA will encourage Canada and the EU to continue developing our natural resources in a way that is environmentally sustainable.

Ratification

The CETA negotiations are not yet completed but an agreement has been reached on all substantive issues. Once a final text has been agreed to it will go through a "legal scrub", be translated into over 20 languages and then ratified by Canada and the EU. The ratification process could take 18-24 months but the Canadian Government has indicated that it wants CETA in effect prior to the 2015 federal election.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Events from this Firm
17 Dec 2016, Other, Ontario, Canada

Podcast summary

In the inaugural episode of Diversonomics, co-hosts Roberto Aburto and Sarah Willis introduce listeners to the podcast and discuss their experiences with diversity and inclusion in the legal industry. They also outline some of the obstacles the profession faces with respect to adopting new strategies and overhauling old practices.

22 Dec 2016, Other, Toronto, Canada

Podcast summary

For episode two of Diversonomics, co-hosts Roberto Aberto and Sarah Willis interview Mark Greenburgh, a partner in Gowling WLG's London office. They discuss the exciting new diversity and inclusion opportunities that have arisen since the combination of Gowlings and Wragge Lawrence Graham, as well at Gowling WLG UK's LGBT OpenHouse initiative.

28 Dec 2016, Webinar, Toronto, Canada

Podcast summary

In episode three of Diversonomics, co-hosts Roberto Aburto and Sarah Willis interview Lorna Gavin, Gowling WLG U.K.’s head of diversity, inclusion and corporate responsibility. In their discussion, they explore the challenges and opportunities of implementing diversity and inclusion strategies across a global firm, while also detailing Gowling WLG U.K.’s various diversity networks.

 
In association with
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.

Disclaimer

Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.

Registration

Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.

Cookies

A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.

Links

This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.

Mail-A-Friend

If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.

Security

This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.