Worldwide: CETA: An Update On What You Need To Know

Last Updated: March 10 2017
Article by Ryan Hayes and Max Reedijk

On February 15, 2017, the European Parliament approved the Comprehensive Economic and Trade Agreement (CETA), a free trade agreement between the European Union (EU) and Canada. CETA's primary goal is to foster mutual Canadian and European economic growth by eliminating 98% of tariffs and bringing harmony to regulatory rules and regimes that affect trade, thereby expanding the already significant trading relationship. In 2015, the EU was Canada's second most important trading partner, with around 9.5% of Canada's total external trade in goods. Canada was the EU's 12th most important trading partner, with around 1.8% of the EU's total external trade in 2015. CETA is being heralded by many as a victory for free trade and international cooperation.

This article will highlight some of CETA's possible benefits and drawbacks, its effects on Canadian law, and the next steps that are required for its full implementation and application.


The Canadian federal government predicts that CETA will provide significant beneficial macroeconomic effects in Canada, including:

  • increasing the market competitiveness of Canadian goods and services in the EU by eliminating tariffs;
  • allowing Canadian companies to bid for EU public contracts;
  • increasing economic efficiency and productivity by fostering competition between Canadian and European firms; and
  • saving hundreds of millions of dollars for Canadian consumers by eliminating tariffs on European goods and services

The combination of these effects may result in significant job growth in Canada and raise the GDP.

The European Commission also predicts that CETA will have a number of high level benefits to the EU, including:

  • removing over €500 million of customs duties on EU exports, making EU products more competitive in the Canadian market;
  • allowing EU companies to bid for Canadian public contracts; and
  • providing EU firms with increased opportunities to provide services in Canada.

In addition to these high level benefits, the Canadian federal government predicts that CETA will have beneficial industry-specific impacts as well. For example, CETA will increase regulatory cooperation between Canada and the EU by easing technical barriers such as labelling, testing, and certification requirements. Increased regulatory cooperation will make it less expensive for Canadian firms that manufacture highly technical products to do business in the EU, and vice versa.

Additionally, the federal government predicts that CETA will have a beneficial impact on various key Canadian industrial sectors such as, among others, agriculture and agri-food, clean technologies, medical devices, metals, mining and minerals, oil and gas, and pharmaceuticals. In each of these fields, Canadian firms, producers and manufacturers stand to benefit.

In each of these sectors, the Canadian federal government predicts that CETA will increase opportunities for foreign investments, open up European markets to Canadian goods and products, and increase opportunities for the development of traditional and new and innovative products.

However, other experts predict that CETA may have considerable drawbacks, both on a macro and microeconomic level. From a broad perspective, a recent report from UN economic researcher Pierre Kohler and Delft University economist Servaas Storm predicts that Canada may lose approximately 23,000 jobs due to increased economic efficiency. The authors further argue that CETA will lead to depressed wage growth because labour will be replaced with cost-cutting "capital-intensive technologies". This could each Canadian to lose approximately $2,460.00 per year.

Specific Canadian industries may lose as well. Relaxed regulatory standards may ease the export burden of EU manufactured automobiles into Canada, thereby challenging the Canadian auto industry. Additionally, Ontario and Quebec dairy farmers may lose out on their entrenched Canadian market position due to competition with duty-free dairy products from the EU.


CETA will have an impact on Canadian intellectual property law. First, CETA requires Canada to implement and comply with the Singapore Treaty on the Law of Trademarks, the Protocol related to the Madrid Agreement concerning the International Registration of Marks, and the Geneva Act of the Hague Agreement Concerning the International Registration of Industrial Designs. The Canadian federal government states these obligations "will encourage more effective trademark and industrial design procedures based on international standards".

Second, CETA will ban Canadian companies from selling products with names that imitate European regional dishes. For example, "Gorgonzola cheese" produced in Canada must explicitly indicate on the packaging that it is only an imitation of the northern Italian cheese.

Third, CETA will affect patent protection terms for pharmaceutical products. For example, CETA will provide pharmaceutical innovation companies with a right of appeal after generic manufacturers receive drug approvals.

CETA will also introduce an efficient and innovative dispute settlement process. CETA's dispute settlement regime is based on the World Trade Organization's Dispute Settlement Understanding model, but with a significantly shorter timeframe which allows for an accelerated arbitration procedure when urgent resolutions are needed. CETA also includes specialized dispute settlement provisions for financial services, taxation, labour, and environmental issues. Recently, Canada and the EU agreed to amend Chapter Eight (Investment) of CETA, by introducing a new tribunal called the Investment Court System, which will settle investor-state disputes.


The European Parliament's decision to ratify CETA is only the first in a number of steps that are required to fully implement the agreement. The national parliaments of each of the EU member states will have to vote to implement CETA through their own respective national ratification procedures. On February 23, 2017, the Latvian Parliament ratified CETA, the first member state to do so. National approval by each EU member state may be met with significant internal opposition in certain of those member states, and may take far longer than it took for the European Parliament to approve the agreement.

In Canada, the federal government is ultimately responsible for the application and implementation of CETA. However, while the provincial governments are obliged to fulfill any CETA obligations falling under a provincial head of power, the federal government does not have the power to enforce compliance.

How a post-Brexit United Kingdom fits into CETA is currently unknown. Trade experts predict that CETA has established the foundations and framework for a future free trade deal between Canada and the United Kingdom, but no details have been finalized.

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

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

Ryan Hayes
In association with
Up-coming Events Search
Font Size:
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
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (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

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’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.


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.


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 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.


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.


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.


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.


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

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

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

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