CETA, a progressive trade deal between Canada and the 28 members of the European Union, passed its last hurdle on February 15 when it was signed by the EU legislature. The agreement covers almost all sectors of EU-Canada trade, eliminating 98% of trade tariffs and creating new opportunities for Canadian businesses looking for new markets.
“At its heart, CETA is a framework for trade that works for everyone,” said Prime Minister Justin Trudeau in a recent address to the EU Parliament.
So now that CETA is becoming a reality, what does that mean for Canadian businesses who are seeking new markets to trade with? To explore these new opportunities, we asked some Canadian trade experts to share their take on this new deal in this month’s #TradeElite Twitter chat. Here’s what they had to say.
Moderator: Craig Atkinson (@CraigAAtkinson) Director, International Trade and Development Consulting with Lexmerca, formerly with the ITC, based in Halifax, Nova Scotia and Geneva, Switzerland.
Panelists:
Siddha Param (@SiddhaParam) International Business Consultant for StrandRidge.com, based out of Winnipeg, Manitoba
Dr. Michele Vincenti, CITP (@alvana1) President & CEO of Alvana Business Consulting Inc. based out of Vancouver, BC
Audrey Ross (@TresAudrey) Logistics and Customs Specialist at Orchard International Inc. based out of Toronto
Doug Taylor, CITP (@globethoughts), Managing Director of Pacific Business Intelligence Ltd in BC
What barriers to the EU market have been lowered under CETA and how can Canadian SMEs seize related opportunities?
@craigaatkinson #TradeElite A1) The market opportunity is Euro 12 Billion and equal to 530 Million customers in Europe
— Michele Vincenti (@alvana1) March 9, 2017
A1: #TradeElite #CETA
– Improves labour mobility
– Better access for trade in services & public contracts
– Eliminates most tariffs https://t.co/XltTKYqRkC
— Mark Schroeter ?? (@TCS_Mark) March 9, 2017
A1. Labour Mobility is the big one. This agreement is the most extensive (after EU) on free mvt. High Trust. #TradeElite
— audrey ross (@tresAudrey) March 9, 2017
@FITTNews #TradeElite The implementation should happen in Canadian terms when the Stanley Cap starts 🙂 May or June 95% of CETA
— Michele Vincenti (@alvana1) March 9, 2017
Will CETA make the EU market more accessible to SMEs who might have previously considered the region out of reach?
A2. Absolutely. It’s always easier / more encouraging to do biz w/ an FTA in play. Gives you a rulebook, support etc. #TradeElite
— audrey ross (@tresAudrey) March 9, 2017
@craigaatkinson It should but it requires that SME’s pursue the mkt and historically they haven’t. The mkt has always been accessible for them #tradeelite
— Doug Taylor (@globethoughts) March 9, 2017
First step is to explore the market, establish the demand. Don’t get bogged down in #FTA detail @globethoughts @craigaatkinson #TradeElite
— Adrian Mutton (@adrianmutton) March 9, 2017
A2: Yes, more accessible markets in EU for #Cdnbiz,
but more importantly…room for growth! #TradeElite https://t.co/Rf5Dhnx92g— Mark Schroeter ?? (@TCS_Mark) March 9, 2017
A2. pre-internet it made sense to trade w/ neighbours only. Time zones, geography, etc. Post internet – it’s abt customers #TradeElite
— audrey ross (@tresAudrey) March 9, 2017
Trade agreements are complicated. Where can Canadian SMEs find info/resources on how to take advantage of CETA?
A3: ?? exporters have this online toolkit from @TCS_SDC to explain #CETA opportunities in EU?? https://t.co/9cT7FtyIvp #TradeElite pic.twitter.com/2zXkmy2G3B
— Mark Schroeter ?? (@TCS_Mark) March 9, 2017
A3. Umm Craig – there aren’t any yet!!! We are all still reading it. Trade Lawyers & Customs Brokers have inside scoop. #TradeElite
— audrey ross (@tresAudrey) March 9, 2017
A3. Seriously though, if you are in the industry you can read do the gov’t site. If new, find a Customs Broker #TradeElite
— audrey ross (@tresAudrey) March 9, 2017
@craigaatkinson #TradeElite https://t.co/7oc5tPbmWH A3) I suggest to join the events across Canada and contact Trade @TCS_SDC
— Michele Vincenti (@alvana1) March 9, 2017
#CETA a great opportunity for exporters. @TCS_SDC doing its part! For more on this see: https://t.co/XsKnaj91oR h/t @tresAudrey https://t.co/6eCrxAGlhY
— Ailish Campbell (@Ailish_Campbell) March 9, 2017
Which sectors do you think are most promising for Canadian SMEs that trade with biz and/or gov in the EU?
A4: Key sectors that will benefit most from #CETA
More info here: https://t.co/gmQ8Brm3jB #TradeElite @CanadaTrade @TCS_SDC pic.twitter.com/79hQzhUB7A
— Mark Schroeter ?? (@TCS_Mark) March 9, 2017
A4. In general, Cdn’s are so great at services & streamlining processes. Consumer goods, tech as well. #TradeElite
— audrey ross (@tresAudrey) March 9, 2017
A4. Is tough to be definitive as we are well matched – EU & Cda are innovative, high quality & fwd thinking! #TradeElite
— audrey ross (@tresAudrey) March 9, 2017
Which EU-country markets present the most significant trade opportunities for Canadian SMEs?
@craigaatkinson #TradeElite A5) Belgium, Germany, The Netherlands are well positioned because already large current traders with Canada
— Michele Vincenti (@alvana1) March 9, 2017
A5. The smaller, more recent member states can benefit from investment in services & Cdn knowledge. #TradeElite
— audrey ross (@tresAudrey) March 9, 2017
A5. Former Soviet Union countries have more needs, than highly established Germany, France #TradeElite
— audrey ross (@tresAudrey) March 9, 2017
@craigaatkinson #TradeElite A5) Belgium is investing heavily in Canada and good for #Quebec because French speakers to cross benefit
— Michele Vincenti (@alvana1) March 9, 2017
What are some examples of how Canadian SMEs from different regions/provinces might leverage CETA?
@craigaatkinson #TradeElite A6) #Quebec must leverage French language to Francophone EU countries. #BC Fishing and #Alberta Oil and Gas
— Michele Vincenti (@alvana1) March 9, 2017
A6. Provinces who help industries pivot from USA to EU quickly w/ investment $ will yield higher returns. #TradeElite
— audrey ross (@tresAudrey) March 9, 2017
Do you have any key advice that Canadian SMEs should consider before entering the EU market?
@craigaatkinson pick on a country your own size, research, identify real customers, commit to mkt and sales, commit time and resources #TradeElite
— Doug Taylor (@globethoughts) March 9, 2017
@globethoughts @craigaatkinson Excellent answer. Start with Canadian SME’s product or service USP #tradeelite @FITTNews
— Siddha Param (@siddhaparam) March 9, 2017
@craigaatkinson #TradeElite A7) Do your home work, talk to trade commissioner, attend events, talk to expert, follow @FITTNews
— Michele Vincenti (@alvana1) March 9, 2017
A7. Duties might be lower – but Taxes are Taxes. EU members charge HIGH Value Added Tax. 17% – 22%!!! #TradeElite
— audrey ross (@tresAudrey) March 9, 2017
A7) Study about the country, understand opportunities and threats, visit with trade delegation @CanadaTrade
— Michele Vincenti (@alvana1) March 9, 2017
A7. Finding a Specialist, or understanding VAT is very important. Most Cdn accountants don’t understand it. You need #TradeElite!
— audrey ross (@tresAudrey) March 9, 2017
@craigaatkinson #TradeElite A7) Take advantage #Canexport You could get up to $99,999 to reimburse up to 50% of eligible expenses to promote
— Michele Vincenti (@alvana1) March 9, 2017
Lastly, do you have anything else to add regarding Canadian SME participation in the EU market?
#TradeElite @craigaatkinson A8) The glass is half FULL! Embrace opportunities!
— Michele Vincenti (@alvana1) March 9, 2017
A8. You can do it! Cda has a great reputation in EU. Together we can do great things. #TradeElite
— audrey ross (@tresAudrey) March 9, 2017
Two highly industrialized markets coming together means opportunities for high value products and services @FITTNews #TradeElite https://t.co/l8OwsYmNxm
— Siddha Param (@siddhaparam) March 9, 2017
Bonus Question!
From @TanyaSaldanha1: Do you think that the impact of Brexit on EU will have any indirect impact on #CETA? #TradeElite
— Craig A. Atkinson (@craigaatkinson) March 9, 2017
#TradeElite @craigaatkinson @TanyaSaldanha1 The Butterfly effect…yes everything is connected BUT look for the opportunities
— Michele Vincenti (@alvana1) March 9, 2017
No, I don’t. Britain isn’t leaving the customs union… which is good. Goods can still flow freely. #TradeElite
— audrey ross (@tresAudrey) March 9, 2017
Also, Canada will very quickly set up an FTA w/ UK post Brexit. I would put $ down it will be the 2nd FTA after exit. #TradeElite https://t.co/OG2BE3lns5
— audrey ross (@tresAudrey) March 9, 2017
Parting advice from our moderator:
After today’s #TradeElite Twitter chat, see the EU Government Procurement Guide for Canadian Businesses https://t.co/tfAexQgNjR #CETA
— Craig A. Atkinson (@craigaatkinson) March 9, 2017
Read the rest of the chat and follow future discussions by following the #TradeElite hashtag. Stay tuned for the next #TradeElite chat, coming up Thursday, April 13 at 2:30-3:30PM ET.
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