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CETA brings competitive advantage for the Canadian Agri- food industry by creating

jobs jobs and strengthen economic relations. It also bridges the gap between Canadian agri-

food companies and the EU’s 510 million consumers by giving significant benefits to

Canadian exporters (AAFC, 2018). Canadian agri-food companies gain many benefits over

competitors still facing EU tariff. CETA also create new markets in EU for Canadian

companies and products. AAFC (2018) stated, CETA leads to removal of 94% of the EU

agricultural and 96% of its fish and sea food import tariffs. The European Union (EU) is

Canada's fourth largest agri-food export destination, with over $3.5 billion in exports in 2016.

Canada exports more food products to EU market such as wines, spirits, soft drinks,

wines and spirits, soft drinks, chocolate, biscuits, confectionery, cereals-based products,

pasta, fruit and edible preparations. According to EUCCAN (2018) “143 highly distinctive

European food and beverage products that hold a geographical indication (GI), such as Greek

Kalamata olives, Austrian Tiroler Speck and Dutch Gouda cheese are now officially

recognized and protected in Canada”.

CETA will increase Canadian exports up to $1.5 billion yearly which include $600

million in beef, $400 million in pork, $100 million in grains and oilseeds, $100 million in

sugar-containing products, and a further $300 million in processed foods, fruits and

vegetables, according to CAFTA (2018). According to Greenham (2019), due CETA lobster

export has been increased in 2018 compare to 2017. Canada has exported 345% increase in

kilograms of lobster exported to Spain, 35% increase in kilograms of lobster exported to

France and 24000 approximate kilograms of lobster exported to Hungary in August. In

August 2017, Hungary imported 0 kg of Canadian lobster (approx.) Even new fishery

products has been exported to EU after CETA came into existence such as redfish. The EU

agreed to eliminate 95.5% of its tariffs on these products upon entry into force of CETA and

4.5% of the tariffs within 3, 5 or 7 years.


Canada has a market access to the EU through autonomous EU tariff rate quotas

(TRQs). In order to ensure that this existing market access will not decline prior to the full

elimination of the relevant tariffs in CETA, the EU will offer two transitional duty free tariff

rate quotas (TRQs), one of 23,000 tonnes for processed shrimps and the other of 1,000 tonnes

for frozen cod (European Comission, 2016). Canada is now open for the EU a new bilateral

quota of 17,700 tonnes of cheese, 16,000 tonnes of which are for high quality cheeses and

1,700 tonnes for industrial cheese. Moreover, 800 tonnes of high quality cheese will be added

through a technical adjustment to the EU portion of an existing WTO TRQ. But Canada's

plan to give 60 per cent of this quota to its domestic dairy industry, to compensate for market

share it's about to lose, didn't go over well in Europe. In negotiation with EU Canada agreed

to give only one third of imports to new entrants in next five year.
References

Agr.gc.ca. (2019). Canada - European Union Comprehensive Economic and Trade

Agreement. [online] Available at: http://www.agr.gc.ca/resources/prod/Internet-

Internet/MISB-DGSIM/ATS-SEA/doc/6878/ceta_bulletin-eng.pdf

EUCCAN - European Union Chamber of Commerce in Canada. (2018). Article: The Impact

of CETA on EU Agri-Food Trade with Canada. [online] Available at:

http://www.euccan.com/impact-of-ceta-on-eu-agri-food-trade-with-canada/

McGregor, J. (2017). 'Missed opportunity': Dairy industry disappointed as Canada relents on

EU cheese imports | CBC News. [online] CBC. Available at:

https://www.cbc.ca/news/politics/ceta-cheese-trqs-1.4230138

Thewesternstar.com. (2018). CETA and Atlantic Canada's fishery: From international trade

to the outport stage | The Western Star. [online] Available at:

https://www.thewesternstar.com/business/ceta-and-atlantic-canadas-fishery-from-

international-trade-to-the-outport-stage-265218/

Trade.ec.europa.eu. (2017). CETA – Summary of the final negotiating results. [online]

Available at:

https://trade.ec.europa.eu/doclib/docs/2014/december/tradoc_152982.pdf

Vieira, S. (2018). CETA opens menu of opportunities for Canadian food exporters | EDC.

[online] Edc.ca. Available at: https://www.edc.ca/en/blog/ceta-opportunities-

canadian-food-exporters.html.

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