Canada & Europe sign historic trade agreement
Following the recent signing of a free trade agreement between the Canadian Prime Minister Stephen Harper and EC President José Manuel Barroso, the new Comprehensive Economic and Trade Agreement will expand trade between Canada and Europe.
Print23 October 2013
The Minister for Jobs, Enterprise and Innovation Richard Bruton has welcomed the conclusion of the four-year long talks on the trade and investment protection agreement with Canada.
“This agreement with Canada is really good news for our exporters,” he stated, “New markets will be opened in Canada and tariffs on nearly all of our exports there will be removed. The deal is good news for the economy and nearly every business sector in Ireland will benefit.”
According to the Minister, exports of Irish goods to Canada have more than doubled since 2006 and totalled €781 million in 2012. When combined with the export of Irish services, this figure rises to just over €2 billion while we imported €655 million in goods and services from Canada in 2012.
“The new agreement has the potential to add over €200 million in our bilateral trade with Canada,” he stated.
In 2012, Canada was Ireland’s 14th-largest market for goods, up from 16th position in 2011. The Agreement is expected to increase two-way bilateral trade in goods and services by €26 billion between the EU and Canada and its impact on the EU’s GDP is equally important giving it a potential boost of about €12 billion a year.
The agreement was welcomed by spiritsEurope, the body representing the European producers of whiskies, gin, vodka, cognac etc.
“At a time when domestic markets are extremely difficult, export markets are providing the only opportunities for growth,” stated spiritsEurope’s Director General Paul Skehan, “Canada’s already the fifth-largest market for European spirit drinks, generating €288 million for the European economy each year”.
The new agreement opens up the opportunity for increasing spirits sales there and means greater access to quality European spirits for Canadian consumers.
The deal includes full elimination of all import tariffs on European wines and spirits, the abolition of the obligation to blend bulk spirits imports with local content and more transparency in the way Liquor Boards operate in Canada and abroad.
The Canadians have agreed to recognise and protect those European products with specific geographic characteristics such as Scotch Whisky, Irish Whiskey, Cognac, Grappa etc.
However the agreement may not take effect for another 12 months as it has to be ratified by both the EU and Canadian parliaments.
“New markets will be opened in Canada and tariffs on nearly all of our exports there will be removed" – Richard Bruton.
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