The Comprehensive Economic and Trade Agreement (CETA) between the EU and Canada entered into force on 21 September 2017.
Import tariffs on about 98% of all products will be removed, helping EU firms to achieve a competitive advantage on Canadian markets and costs savings on imports from Canada.
The CETA is one of the most comprehensive trade agreements signed to date. It will facilitate the movement of goods and cover a number of other areas including trade in services, investment protection, various forms of regulatory cooperation and e-commerce. It will also allow EU companies to bid for high-value government procurement contracts in Canada. With the Canadian government spending nearly $200 billion annually on procurement (OECD estimates 2016), the provision represents a significant opportunity.
What are the implications of the agreement for UK businesses? UK firms can take a full advantage of opportunities under CETA from 21 September until the day the UK leaves the EU. As customs duties are an irrecoverable tax, any savings have a direct impact on the bottom line.
Read a September 2017 report prepared by the KPMG member firm in the UK
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