Does Canada Have a Free Trade Agreement with the EU?
Canada and the European Union have a long-standing trading relationship that has evolved over the years. In today`s global economy, free trade agreements (FTAs) are necessary for countries to ensure smooth trade relationships and reduce trade barriers. So, the question arises, does Canada have a free trade agreement with the EU?
The answer is yes, Canada has a Comprehensive Economic and Trade Agreement (CETA) with the EU. CETA is a free trade agreement that eliminates tariffs on most goods and services traded between Canada and the EU. The agreement was signed in 2016 and entered into force provisionally on September 21, 2017.
CETA is the most ambitious free trade agreement that Canada has ever signed. The agreement covers a wide range of areas, including trade in goods, services, and investment. It also includes provisions on government procurement, intellectual property, and sustainable development. In addition, CETA includes a chapter on regulatory cooperation, which seeks to eliminate unnecessary regulatory barriers that hinder trade between Canada and the EU.
Under CETA, Canadian businesses have access to a market of over 500 million people and a GDP of over $16 trillion. This means that Canadian exporters now have lower tariffs and easier access to the EU market, making them more competitive on the global stage. Canadian consumers also benefit from lower prices and a wider variety of goods and services, as a result of greater competition and increased trade.
In conclusion, Canada and the EU have a strong and beneficial free trade agreement in place through CETA. The agreement has helped to strengthen the long-standing trade relationship between the two parties, ensuring that businesses and consumers on both sides of the Atlantic can benefit from open trade and increased economic opportunities.