Canada and Europe Cozy Up

Canada and the European Union have been working together to come up with a trade agreement that could present great opportunities for Canadian businesses.  In essence, trade agreements function to reduce barriers in the marketplace.

Although not finalized, Canada and Europe have come together to create Canada-EU: Comprehensive Economic and Trade Agreement (“CETA”).  The specifics of the agreement are still being ironed out and the details are under wraps.  This means that there are a still a lot of unknowns.  However, it does seem promising.

If CETA does go through, a 2008 study predicts that there will be 80,000 new jobs created in Canada, which could contribute an additional $12 billion to the economy.  That sounds pretty attractive!  If ratified, CETA would allow for a significant drop in tariffs for Canadian goods and services entering the European market.

But let’s not count our low-tariff chickens before they hatch.  There’s a lot of heavy lifting required to bring an agreement like this into effect.  Some of the specific terms still need to be negotiated (not an easy feat), the agreement needs to be translated into 22(!) languages and then both governments need to formally adopt the agreement.  It/when the agreement is ratified, the agreement will not come into effect for some years to come.

As always, CanadaFashionLaw will keep you posted.