With uncertainty swirling around Brexit and the future of NAFTA, it looks as though Canada will have at least one major trade deal set in stone moving forward, possibly even sooner than anticipated. The Comprehensive Economic and Trade Agreement between Canada and the EU has completed the approval process as of May 11 and could now be put into effect ahead of its initial July 1 timeline.
James Small, counsel in the Trade Advisory Practice of the International Commercial Group at Baker McKenzie’s Toronto office, released a statement explaining the update and offering his thoughts on what it means for Canadian business interests:
“On May 11, the Senate concluded a third reading of Bill C-30, Canada-European Union Comprehensive Economic and Trade Agreement Implementation Act. Canada will now send formal written notification to the General Secretariat of the Council of the European Union stating that Canada has completed its internal approval requirements in accordance with Article 30.7 of CETA.
Strict adherence to this provision would have CETA go into effect on July 1, 2017, but ideally both parties will agree to waive this requirement and have CETA go into effect by mid-June, so as not to conflict with the Canada 150 celebrations. Other than this exchange of written notifications and consent of the appropriate start date, no additional approvals are required in either the EU or its member states for CETA to go into provisional application.
Provisional application covers 95% of the agreement, including: the EU ultimately removing tariffs on 99% of its tariff lines; opening up billions of dollars in government procurement opportunities in both the EU and Canada; facilitating the intracompany transfer of key employees; introducing significant changes to Canada’s intellectual property regime; recognition of EU geographical indications in Canada; and confirming formal standing for Canadian interest in the design of EU regulatory measures affecting goods and services, including financial services. After long last, CETA is about to deliver on the jobs, growth and economic benefits for both Canada and the EU that come from negotiating and concluding a truly 21st century trade agreement.”
Stay tuned as our international trade experts continue to monitor the future of trade in Canada and decipher what it will mean for our clients at home and abroad.
