Canada-Europe Trade Agreement (CETA)

Definition

The Canada-European Trade Agreement (CETA) is a free trade agreement between Canada and the European Union (EU) and its member states.

What is the Canada-Europe Trade Agreement?

CETA aims to remove or reduce barriers to trade and investment between Canada and the EU, facilitating increased flows of goods, services, and capital. It eliminates or reduces tariffs on a wide range of products, making Canadian exports more competitive in European markets and vice versa.

Additionally, CETA includes provisions to ease trade in services and promote investment between Canada and the EU. It provides for increased access to EU markets for Canadian service providers in areas such as financial services, telecommunications, and professional services, while also protecting the rights of investors.

CETA includes provisions on intellectual property rights, including trademarks, copyrights, patents, and geographical indications. It establishes rules for the protection and enforcement of intellectual property rights, aiming to create a more predictable and transparent legal framework for intellectual property protection.

Lastly, CETA includes chapters on sustainable development, labor rights, and environmental protection, aiming to ensure that trade and investment liberalization are conducted in a manner that promotes social and environmental objectives.

Example of the Canada-Europe Trade Agreement

Under the Canada-Europe Trade Agreement, a Canadian dairy producer gains improved access to the European market for its cheese products. With tariffs reduced or eliminated, the producer can now export its cheese to Europe at a more competitive price, expanding its market reach and boosting sales overseas. Similarly, a European wine producer benefits from increased access to the Canadian market, with reduced tariffs making its products more affordable and appealing to Canadian consumers.