Countries and regions
The European Commission proposed the signature of the EU-Canada Comprehensive Economic and Trade Agreement (CETA) to the Council of the EU in July 2016. If the Council approves the agreement, it will need the European Parliament consent for it to be finalised.
If the Council ratifies the agreement, it can be provisionally applied in areas where the governments of EU Member States deem the EU to have responsibility.
The national parliaments of the EU Member States would then also need to ratify CETA for the areas which fall under their responsibility to take effect.
This ratification procedure follows the release of the legally reviewed CETA text in February 2016.
For more details read the factsheet "Trade Negotiations Step by Step"
Small businesses across Europe already export to Canada, or want to do so. They'll get a big helping hand from CETA, a new EU-Canada trade deal.
- In 2015 Canada was the EU's 12th most important trading partner, accounting for 1.8% of the EU's total external trade. The EU was Canada's second most important trading partner, after the U.S., with around 9.5% of Canada's total external trade in goods in 2015.
- The value of bilateral trade in goods between the EU and Canada was €63.5 billion in 2015. Machinery, chemicals and transport equipment dominate the EU's exports of goods to Canada. Pearls and precious metals, and mineral products dominate the imports of goods from Canada. Machinery and chemicals also constitute an important part of the EU's imports from Canada.
- The value of bilateral trade in services between the two partners amounted to €27.2 billion in 2014. Examples of traded services between Canada and the EU are transportation, travel, insurance and communication.
- European investors held investments worth €274.7 bn in Canada while Canadian direct investment stocks in the EU amounted to almost €166 bn in 2014.
EU-Canada: Trade in goods
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EU-Canada: Trade in services
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EU-Canada: Foreign direct investment
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EU and Canada
EU-Canada trade negotiations
The Comprehensive Economic and Trade Agreement (CETA) will bring benefits for people and businesses around Europe:
- It will scrap most customs duties and cut red tape from day one.
- It will make it easier for Europeans to work in Canada.
- It will allow EU firms to bid for Canadian government contracts.
- It will promote sustainable development.
- and many more issues.
The current trade relations with Canada are guided by a Framework Agreement for Commercial and Economic Cooperation, in force since 1976. The EU and Canada meet annually in bilateral summits and in the Joint Cooperation Committee to review a range of issues relating to EU-Canada economic and trade relations.
Over the years, the EU and Canada have concluded a number of additional bilateral agreements to make trade easier:
- A 1997 agreement fostered closer cooperation between EU and Canadian customs administrators.
- The Veterinary Agreement of 1999 aimed at improving bilateral trade in live animals and animal products.
- Recent agreements include the Wine and Spirits Agreement (2003), the Civil Aviation Safety Agreement (2009) and the Comprehensive Air Transport Agreement (2009).
- The Veterinary Agreement and the Wine and Spirits Agreement will be incorporated into CETA with its entry into force.
CETA is expected to increase two-way trade in goods and services, helping to create jobs and grow the economy on both sides of the Atlantic.
The EU and Canada launched CETA negotiations in May 2009 and agreed on the content and its general strategy in June 2009.
The EU-Canada Joint Study of October 2008 showed that both EU and Canadian citizens can expect a closer bilateral trade relationship to boost economic growth and create jobs.
Trading with Canada
- Importing into the EU from Canada
- EU trade defence measures on imports from Canada
- Exporting from the EU to Canada
- The EU is present on the ground in Canada
- Trade relations are part of the EU's overall political and economic relations with Canada
- Canada is a member of the World Trade Organisation
- The EU has analysed the social, environmental and economic impacts of a potential trade agreement with Canada in a Sustainability Impact Assessment (SIA)
- The trade negotiating mandate for CETA was made public in December 2015.