Five-year European-Canadian trade deal CETA: Commission takes positive stake

Five years ago today, the European-Canadian trade agreement CETA provisionally entered into force. Executive Vice President and Trade Commissioner Valdis Dombrowskis During the anniversary attracted positive balance: “Thanks to CETA, trade between the EU and Canada has increased significantly. This has helped create 700,000 jobs in the EU. Every economic sector will benefit.CETA’s provisional application applies only to areas covered by the EU’s competence. It needs to be ratified by the parliaments of all 27 EU member states to become fully effective.

Valdis Dombrovskis, Executive Vice President and Trade Commissioner added: “CETA has boosted trade in green goods and given us concessions on energy and raw materials, evidenced by the rapid growth of EU imports of these key resources. We need such a dynamic partnership in today’s turbulent geopolitical climate.”

Canada-EU trade relations under CETA

Thanks to CETA, bilateral trade in goods between the EU and Canada has increased by 31 percent to €60 billion over the past five years. Trade in food and agricultural products also increased by 41 percent. Exports of EU goods to Canada have increased by 26 per cent since CETA came into effect. Bilateral trade in services increased by 11 percent. Canadian companies have invested more than €240 billion in the EU, creating more jobs and promoting business and growth.

The EU has been granted privileged access to Canadian goods through CETA: tariffs have been eliminated, export restrictions have been banned and supply chain risks have been reduced during times of high demand. EU imports of base metals from Canada will increase by 143 percent between 2016 and 2021, while imports of minerals will increase by 131 percent. These resources are essential for key EU industries such as battery manufacturing.

CETA also created a framework for energy trade with a reliable and like-minded partner. EU energy imports from Canada increased by 70 percent between 2016 and 2021.

Canada-Germany trade relations under CETA

Since CETA came into force, exports of German goods to Canada have increased by 8 percent to reach 13 billion euros in 2021. German service exports to Canada rose 11 percent to 3 billion euros in 2019 before the coronavirus pandemic.

Since CETA came into force provisionally, German investments in Canada have increased by 13 per cent to reach €12 billion in 2021. Canadian investments in Germany increased by 20 percent to 9.5 billion euros.

Background

CETA, the EU-Canada Comprehensive Economic and Trade Agreement, is the trade agreement between the EU and Canada and a cornerstone of our bilateral relationship. It entered into force provisionally in 2017 and will be fully applicable once ratified by all EU member states in accordance with their national procedures. So far, 16 of the 27 member states have ratified CETA.

More information:

Full press release

DG Trade website on CETA

Country Fact Sheet on Germany 5 years after CETA

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