Today marks the fifth anniversary of the provisional application of the EU-Canada Comprehensive Economic and Trade Agreement (CETA). CETA is a central pillar of the political, trade and economic partnership between the EU and Canada.
The agreement has helped boost EU trade with Canada and has provided the EU with a solid, trusted source of supply for key resources such as energy and raw materials. Building on this closer relationship, the EU-Canada strategic partnership on raw materials, signed in June 2021, has proven to be of particular importance in the current geopolitical context.
Executive Vice President and Commissioner for Trade Valdis Dombrovskis said: “We now have five years of solid proof that CETA helps support jobs and growth in the EU, with no downsides. Thanks to CETA, EU-Canada trade has been on the up and up. It has supported an impressive 700,000 jobs in the EU. Every economic sector is benefiting. CETA has cemented our strong relationship with Canada, a trusted and like-minded partner. We have cooperated on plans for economic recovery, WTO reform, climate action and we have stood shoulder-to-shoulder in support of Ukraine. CETA has driven forward trade in green goods and has given us privileged access to energy and raw materials, evidenced by the stellar growth in EU imports in those key resources. This is the kind of dynamic partnership we need in today’s turbulent geopolitical climate.”
CETA has delivered sustainable economic growth and jobs for the EU. Bilateral two-way trade in goods between the EU and Canada has increased by 31% over the past five years reaching 60 billion euros, with even higher growth of 41% in trade in food and agricultural products EU goods exports to Canada have increased by 26% since CETA came into force.
Bilateral trade in services has increased by 11%. Canadian companies invest more than €240 billion in the EU, creating further employment opportunities and helping businesses and growth.
CETA is one of the greenest, most inclusive and most sustainable trade deals ever signed.
With strong provisions on climate, environment and labour, it also aims to grow trade in climate-friendly goods, technologies and services. Total bilateral trade in environmental goods grew by 27% from €4.6 bn to €5.9 bn in 2021. CETA also aims to foster improved gender equality, and improved participation of small businesses.
CETA has also given the EU privileged access to Canada’s raw materials: it has eliminated tariffs, prohibited export controls and reduced supply chain risks also in times of high demand. EU imports of base metals from Canada increased 143% between 2016 and 2021, whereas imports of minerals have gone up 131%. These resources are critical for key European industrial sectors, for instance, for battery production in the EU.
CETA has also created a framework for trade in energy with a reliable and like-minded partner. The EU’s energy imports from Canada have grown by 70% between 2016 and 2021.
The EU-Canada Comprehensive Economic and Trade Agreement (CETA) is a trade agreement between the EU and Canada and a cornerstone of our bilateral relations. It entered into force provisionally in 2017 and will enter into effect fully once all EU Member States ratify it according to their national procedures. So far, 16 of 27 Member States have ratified CETA.
Source: Cyprus News Agency