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EU CANADA Business Forum on Energy European Union Perspective on the EU/Canada Comprehensive Economic and Trade Agreement (CETA)
Canada:
10 Provinces, 3 Territories 2 official languages 33.5 million inhabitants 9.9 million sq. km GDP per capita: 27500 euros
European Union
27 Member states 23 official languages 500 million inhabitants 4.5 million sq km GDP per capita: 23500 euros Luxembourg: 65000 euros Germany: 27000 euros Bulgaria: 8600 euros The EU is a vast, integrated market, with different levels of economic capacities and budgetary conditions.
TOTAL EU TRADE IN GOODS (IMP + EXP) WITH MAIN TRADING PARTNERS - 2010
Total Trade with EXTRA EU 27 1 2 3 US China Russia Switzerland* Norway* Japan* Million Euros 2,850,677 411,596 395,128 244,892 189,559 121,039 108,628 %
Total Trade with 100 14.4 13.9 8.6 6.6 4.2 3.8 1 2 3 4 5 6 7 8 9 10 11 US EU 27 China Mexico Japan South Korea Brazil Norway Switzerland Peru India
World
100
63 10.5 7.4 3.5 2.9 1.3 0.7 0.7 0.6 0.5 0.5
4
5 6 7 8 9 10 11
Turkey*
India* South Korea* Brazil* Canada*
103,277
67,946 66,636 63,603 46,642
3.6
2.4 2.3 2.2 1.6
Trade in goods EU exports of goods to Canada in 2010: 26.6bn EU imports of goods from Canada in 2010: 20.1bn
Trade in services EU exports of services to Canada in 2010: 12.3bn EU imports of services from Canada in 2010: 9.1bn TOTAL EU/CANADA BILATERAL TRADE: 67.5bn (more than $90bn)
In addition: Canada is the 4th largest investor in EU (4.3% of the EUs inward FDI) and the EU is the 2nd largest investor in Canada (26.3% of Canadas inward FDI).
2009 2010
2011
2.74 3.31
2.04
42.45 51.68
68.39
Product: HS 2709: Crude Petroleum Oils and Oils obtained from Bituminous Minerals Values expressed in billions of $ Source: Industry Canada / Trade Data Online
2011
1.62
2.24
4%
Values expressed in billions of $ Source: Industry Canada Trade Data Online Main Alberta export items to EU: Nickel, Wheat, Coal, Canola etc. Main Alberta imports from EU: Surveying and geophysical instruments, turbines, industrial taps and valves, Tubes and Pipes etc.
CETA Process
The launch of CETA negotiations took place at the EU/Canada Summit in May 2009 in Prague. The decision to launch negotiations followed almost two years of study on the costs and benefits of a closer EU/Canada partnership, the so-called Joint Study .
The Joint Study was then followed by the Scoping Exercise, which set the objectives of the negotiations.
SCOPING EXERCISE
Specific areas of relevance to any future agreement (Joint Report on EU-Canada Scoping Exercise, March 5, 2009)
TRADE IN GOODS SANITARY AND PHYTOSANITARY ISSUES
SUSTAINABLE DEVELOPMENT INTELLECTUAL PROPERTY RIGHTS, INCLUDING GIs MOVEMENT OF PERSONS (labor mobility)
TRADE FACILITATION
COMPETITION POLICY AND OTHER RELATED ARES INSTITUTIONAL ARRANGEMENTS AND DISPUTE SETTLEMENT
OTHER AREAS
Pursue a comprehensive and ambitious agreement: No minimalist deal (all issues on the table);
Conclude negotiations quickly target is 2012; Because of the wide scope for the negotiations, essential to secure a strong involvement of the Canadian Provinces and Territories in the negotiations (first time for Canada).
Nine rounds have taken place and talks continue in the form of focused working sections; In general, the negotiations have progressed very well so far. Excellent atmosphere and high ambitions remain on both sides; On trade in goods the current exchange of offers aim at eliminating tariffs on roughly 99% of existing tariff lines in bilateral trade, with a maximum dismantling period of seven years.
On public procurement a very ambitious market access offer has been exchanged with significant openings at sub-federal level (Provinces and Municipalities);
Negotiations are also very well advanced in services while a negotiations on investment protection are less advanced due to the late approval of the mandate by the EU side;
Perspectives Satisfaction for the serious and constant implication of the Provinces and Territories in the negotiations. Provinces must remain active and committed. Political support for an ambitious agreement remains strong on both sides. Hope to continue fast progress and conclude negotiations by 2012.
Fuel Quality Directive (FQD): It is an important issue in EU/Canada relations but it is not part of the CETA negotiations. The EC is preparing an impact assessment of implementing measures; this will take the rest of 2012. There will be a proposal to the Council in 2013. All studies including Canadian show that oil sands have a higher carbon content due to their extraction process; The intention of the EU legislation is to lower the carbon content of road transport fuel. This is achieved through using sustainable biofuels, (renewable) electricity and lower carbon fossil fuels.