The EU-Canada Comprehensive Economic and Trade Agreement (CETA) has been described as one of the most ambitious free trade agreements ever negotiated. The agreement aims to increase trade and investment between Canada and the European Union (EU) by eliminating tariffs and other trade barriers, providing greater access to each other`s markets, and creating new opportunities for businesses on both sides of the Atlantic.
CETA was signed in October 2016, and entered into provisional application in September 2017. Since then, it has resulted in significant increases in trade between Canada and the EU, with bilateral trade expected to increase by up to 20% as a result of the agreement.
One of the main benefits of CETA is that it eliminates tariffs on 98% of products traded between Canada and the EU. This means that Canadian businesses can export their products to the EU at a lower cost, making them more competitive. It also means that EU businesses can export their products to Canada at a lower cost, making them more attractive to Canadian consumers.
In addition to tariff elimination, CETA also provides for better access to government procurement markets. This means that Canadian and European businesses can bid on public contracts in each other`s markets, which can help to boost international trade and create new opportunities for businesses.
CETA also includes provisions to protect intellectual property (IP) rights, which is important for businesses that rely on the value of their trademarks, patents, and copyrights. The agreement includes provisions for the protection of geographical indications, which are names that identify a product as originating from a specific place and that have qualities, characteristics, or a reputation that is linked to that place.
Another benefit of CETA is that it provides for the mutual recognition of professional qualifications. This means that professionals, such as engineers, accountants, and architects, will have their qualifications recognized in both Canada and the EU, making it easier for them to work in each other`s markets.
There are some concerns about CETA, particularly in relation to its impact on certain industries. For example, the agreement has been criticized by some groups in Canada for potentially harming the country`s dairy sector. However, proponents of CETA argue that the benefits of increased trade and investment outweigh any potential negative effects.
In conclusion, the EU-Canada Comprehensive Economic and Trade Agreement is an important agreement that has the potential to create significant benefits for both Canada and the European Union. By eliminating tariffs and other trade barriers, providing greater access to each other`s markets, and creating new opportunities for businesses, CETA can help to boost international trade, create jobs, and drive economic growth.
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