CETA update: September 21 = Implementation Day!
CETA, the Comprehensive Economic and Trade Agreement, is an agreement between Canada and European Union member states (see the list of countries in our CETA blog from last fall) and is on the verge of being a reality.
EU-Canada Trade
The EU is the world’s second-largest economy and Canada’s second-largest trading partner after the United States. CETA’s broad scope includes improved access to EU markets; greater certainty, transparency, and protection for investments; and new opportunities in EU procurement markets.
CETA will be formally implemented on September 21st, 2017, at which time Canadian businesses can immediately begin to take
advantage of its benefits.
As of implementation day, what sorts of benefits, you ask?
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Over 99% of non-agricultural imports will be duty free for all parties,
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in Canada, 92% of agricultural imports will be duty free, and
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in the EU, 93.8% of agricultural imports will be duty free.
The balance of non-agricultural tariffs for certain commodities – for example automobiles and vessels – will be eliminated over the next three to seven years.
Both Canada and the EU will maintain special regimes for sensitive products (i.e. dairy in Canada, corn in the EU) however, both Canada and the EU will allow additional quota for some of these products.
How can Canadian importers of EU goods make sure CETA works for them?
In order to take advantage of favourable CETA duty rates right away, Canadian importers of EU-origin goods must have an origin declaration. Annex 2 of the CETA protocol on rules of origin and origin procedures sets out the language to be used in the certification of origin.
Rules of Origin: As a general rule, EU-origin goods must be shipped directly from an EU member to receive Canada-EU CETA preferential tariff treatment.
Do your homework… and make sure your suppliers are ready. Suppliers need to identify the HS tariff classification for the goods they export and know the product-specific rule of origin for them, too. Then exporters need to complete the CETA Declaration of Origin – either for each shipment or as a ‘blanket’ declaration that will apply to identical goods for a period of up to 12 months.
If your supplier is a regular exporter, they may wish to become an approved exporter by making an application to the customs authority of their country.
If you need help with obtaining the required documentation from your EU suppliers or preparing the required documentation for your EU clients, Cole can help!
Also, Global Affairs Canada maintains a comprehensive and up to date website on CETA.
Not importing from an EU member state?
What are you waiting for? It’s time to look into the benefits of sourcing your goods from the EU. Email us today and one of our Free Trade Consultant will be in touch!
Information provided by: NAFTA & Free Trade Dept. - Cole International
