CETA is a trade agreement between the EU and Canada. It cuts tariffs and makes it easier to export goods and services, benefitting people and businesses in both the EU and Canada.
CETA entered into force provisionally on 21 September 2017, meaning most of the agreement now applies. National parliaments in EU countries – and in some cases regional ones too – will then need to approve CETA before it can take full effect.
Invitation to participate in the surveys on the CETA ex-post evaluation.
We invite Civil Society, NGOs, Business, SME and anyone else who wishes to do so to share with us their experiences on the EU-Canada Comprehensive Economic and Trade Agreement (CETA)
Please participate in one or more of the following surveys:
More information on the ex-post evaluation on CETA and how to engage can be found in the Ex-post evaluation of the Comprehensive Economic and Trade Agreement (CETA) between the EU and Canada website.
The EU-Canada Comprehensive Economic and Trade Agreement (CETA) entered into force provisionally on 21 September 2017.
The areas that have not yet entered into force are
The agreement will take full effect once all Member States’ parliaments have formally ratified it.
Areas covered include market access rules for goods, technical barriers to trade, sanitary and phytosanitary measures, investment, services, electronic commerce, competition policy, government procurement, intellectual property, regulatory cooperation or dispute settlement. The Annexes include tariff elimination schedules, quotas, procedures, rules of origin, mutual acceptance of conformity assessments etc.
The chapters of the agreement are briefly explained here and the related text can be downloaded.
On 21 September 2017, Canada and the EU already abolished 98% of their tariff lines and agreed to gradually eliminate almost all remaining tariff lines. By 2024, 99% of all tariff lines will have been abolished.
Canadian products subject to a transitional phase-out of the tariffs include
European products subject to a transitional phase-out of the tariffs include
The gradual elimination of tariffs follows a tariff dismantling schedule. The reductions are expressed in staging Categories in Annex 2A of the agreement.
My Trade Assistant displays the tariff dismantling schedules for the relevant tariff lines.
Both sides have agreed to eliminate 100% of tariff lines for industrial products, of which of which 99.6% upon entry into force in the case of Canada and 99.4% upon entry into force in the case of the EU. Amongst the few products not liberalised at entry into force are a limited number of automotive products, which will be liberalised on a reciprocal basis over 3, 5 or 7 years (17 products in the Canadian tariff offer and the corresponding products in the EU offer). Canada will liberalise its remaining tariffs on ships over 7 years (i.e. by 2024).
On the entry into force, Canada eliminated duties for 90.9% of all its agricultural tariff lines. By 2023, this will increase to 91.7%.
For sensitive agricultural products, there will be a special treatment:
Both sides apply tariff rate quotas (TRQs) on certain products including Canadian beef, pork and sweetcorn as well as European cheese. These are specific volumes of goods, which will be entitled to preferential tariff treatment in a given timeframe.
Tariff quota allocations are calculated based on the quantities available within the tariff quota and the quantity applied for, as notified to the EU Commission by national authorities.
Once the allocations are calculated by the EU Commission and made public, EU member countries must issue import or export licences for the quantities applied for within the respective tariff quotas.
The basic rules for simultaneous examination are defined in the Commission Regulation 1301/2006 laying down common rules for the administration of import tariff quotas for agricultural products managed by a system of import licences.
The allocation rates of the EU TRQs, in terms of import licences issued, are published every month and are accessible through the Meat Market Observatory.
The following regulations define how the EU manages its different TRQs for CETA
More information on the allocation of the TRQs for dairy products exported from the EU to Canada under CETA can be found under “Notices” on Global Affairs Canada website
The Notices to Importers set out the eligibility criteria to obtain an allocation under each respective TRQ. The Notices also provide information on the administration of TRQs in general and on the process for submitting an application. Application forms and related appendices are attached to each Notice.
Furthermore, note that
Specific tariffs on EU wines and spirits entering Canada were eliminated at entry into force of CETA.
For spirits such as gin, vodka and whisky, CETA addresses non-tariff barriers that significantly hampered the EU’s capacity to penetrate the Canadian market, notably by
CETA includes both the 1989 EU-Canada Agreement on Alcoholic Beverages and the 2004 EU-Canada Wines and Spirits Agreement, offering strong legal guarantees for European and Canadian wine and spirit traders. Minor amendments to the 2004 Agreement are set out in Annex 30-B of CETA.
Canada fully eliminated all tariffs on fisheries products at the entry into force.
The EU eliminated 95.5% of its tariffs upon entry into force and agreed to further eliminate the remaining 4.5% of the tariffs within 3, 5 or 7 years.
In parallel to lifting customs duties, the EU and Canada will develop sustainable fisheries by using monitoring, control and surveillance measures, as well as by fighting illegal, unreported and unregulated fishing.
Find the applicable tariff rate for your product in My Trade Assistant.
In order to qualify for preferential treatment, your product will need to satisfy the rules of origin under the agreement. Please check the interactive “Rules of Origin Self Assessment tool (ROSA)” in My Trade Assistant to assess whether your product fulfils the rules of origin and find out how to prepare the correct documents.
General information about the rules of origin and the origin procedures can be found in this section.
Origin is the 'economic nationality' of traded goods. If you are new to the topic, find an introduction to the main concepts in the goods section.
Rules of origin
The rules of origin are set out in Protocol on rules of origin and origin procedures of the EU-Canada Comprehensive Economic and Trade Agreement (CETA) (OJ L 11, 14.01.2017, p. 465). Please consult also the detailed guidelines on rules of origin.
For your product to qualify for the lower or zero preferential tariff under CETA, your product must originate in the EU or Canada.
A product 'originates' in the EU or in Canada, if it fulfils one of the following requirements
See also Introductory notes to Annex 5.
Furthermore, Annex 5a provides for origin quotas and alternative product specific rules for certain products.
Examples of product-specific rules in EU trade agreements
A combination of these different rules is possible with the different rules being fulfilled alternatively or in combination.
The agreement provides additional flexibility to help you comply with the product specific rules, such as tolerances or cumulation.
CETA provides for three ways of cumulating origin
Your product also needs to fulfil all other applicable requirements specified in the Protocol on rules of origin, such as insufficient working or processing, or the non-alteration rule.
Originating products must be transported from the EU to Canada (and vice-versa) without being further processed in a third country.
Some operations can be conducted in a third country if the products remain under customs supervision
The customs authority may require an importer to demonstrate that a product for which the importer claims preferential tariff treatment was shipped in compliance with the transport rules.
Refunding of duties previously paid on non-originating materials used to produce a product that is exported under a preferential tariff is allowed only in the first 3 years after the entry into force of CETA, i.e. until 21 September 2020.
Origin procedures
If you want to claim a preferential tariff, you will have to follow the origin procedures and have your claim verified by the customs authorities of the country into which you are importing your goods. The procedures are set out in Section C of the Protocol on rules of origin of the agreement.
Importers can claim preferential tariff treatment based on an origin declaration provided by the exporter.
In the EU, no proof of origin is required when the total value of the products does not exceed
Exporters can self-declare that their product originates in the EU or Canada by providing an origin declaration.
In the EU it can be completed either
The same REX number can be also used for some other EU preferential trade agreements (for example the EU’s trade agreement with Japan).
The customs authorities may verify whether a product imported is indeed originating or fulfills other origin requirements.
In case of doubt, the customs authority may require an importer to demonstrate that a product for which the importer claims preferential tariff treatment was shipped in compliance with the transport rules.
Verification is based on the following principles
Once the verification is concluded, the authorities of the importing country make the final determination of origin and inform the authorities of the importing party of the results.
Practical guide on CETA’s provisions on rules of origin
Technical rules define specific characteristics that a product should have, such as design, labelling, marking, packaging, functionality or performance, and are designed for example to protect human health, safety or the environment. However, it can be costly for traders to comply with different requirements in different markets.
EU and Canadian technical rules and regulations have been made more compatible, so that businesses can sell the same product, or the same product with fewer modifications, into both markets. This allows small companies, in particular micro-enterprises, to compete with larger companies and to participate in international supply chains and e-commerce.
CETA also has provisions to ensure transparency - for instance, that interested persons on either side can comment on proposed technical regulations that Canada or the EU may develop).
Furthermore, the EU and Canada have agreed to strengthen the links and cooperation between their standards-setting bodies as well as their testing, certification and accreditation organisations.
The EU and Canada have agreed to strengthen the links and cooperation between their standards-setting bodies as well as their testing, certification and accreditation organisations.
CETA sets out provisions that help to avoid unnecessary disruptions and ensure transparency (for instance, that interested persons on either side can comment on proposed technical regulations that Canada or the EU may develop).
Canada and the EU have agreed to accept mandatory conformity assessment certificates issued by recognised conformity assessment bodies (CABs) located in the EU, and vice versa for the sectors covered by the CETA Protocol, to prove compliance with Canadian or EU requirements.
The Protocol on the mutual acceptance of the results of conformity assessment, replaces the existing mutual recognition agreement (MRA) and extends the product coverage, with a possibility for further expansion.
The products covered by the protocol are
How to find the approved CABs?
NANDO Database contains Notified and Designated Organisations and other relevant information on Conformity assessment.
CETA further streamlines approval processes, reduces costs and improves the predictability of trade in animal and plant products
The Canadian Food Inspection Agency (CFIA) sets the policies and regulations for imports of food, agricultural inputs and agricultural products.
The Canada Border Services Agency (CBSA) is responsible for the initial import inspection of food, agricultural inputs and agricultural products.
Examples of labeling requirements for food products in Canada
Find more labeling requirements on the Industry Labelling Tool of the Canadian Food Inspection Agency.
This is a list of regulations that you may find useful when exporting your food products to Canada
CETA confirms the existing EU-Canada collaboration in the veterinary field based on a high level of mutual trust, and it includes a further simplification of the approval process for exporters.
Requirements for animals and animal products exports to Canada
CETA sets up new procedures to simplify and accelerate the approval process for plants, fruit and vegetables by Canada.
CETA allows Canada to replace the current country-by-country and product-by-product approach by EU-wide assessments and approval procedures for fruit and vegetables.
The aim is to create a more predictable regulatory environment for exporters.
For all product categories, the parties agreed to establish fast-track procedures for items identified as priorities.
Information and requirements on Plant and Plant Product Exports to Canada
CETA builds on the mutual recognition of good manufacturing practices and inspections of pharmaceutical factories already in place between the EU and Canada, and reduces duplicate inspections.
This means that as a pharmaceutical manufacturer you will be facing significantly smaller administrative burdens and costs and EU and Canadian regulators can make better use of their resources by reducing duplicate inspections, and instead focusing on markets where there are higher risks. Concretely
In today's global economy, 40% of finished medicines marketed in the EU come from overseas, and so do 80% of active pharmaceutical ingredients used to make medicines available in the EU.
Find the specific rules and requirements for your product in My Trade Assistant.
Although technical rules are important, they can at times act as a barrier to international trade and can thus be a considerable burden for you as an exporter.
The agreement ensures more transparent and simplified customs procedures to facilitate trade and reduce costs for businesses.
The Step by step guides describe the different types of documents you should prepare for the customs clearance of your products.
Depending on your product, the customs authorities may require all or some of the elements below
For more certainty, you may wish to apply for Binding Tariff Information, and/or Binding Origin Information in advance.
For detailed information about the documents you need to present for customs clearance for your product, go to My Trade Assistant.
For a description of how to prove the origin of your products to claim a preferential tariff and of the rules relating to the verification of origin by customs authorities, please refer to the section on rules of origin above.
For information on customs procedure for import and export in general visit DG Taxation and Customs Union.
CETA offers better intellectual property rights protection for European companies exporting innovative, artistic, distinct and high-quality products to Canada and offers protection for pharmaceutical products and geographical indications.
Canada has strengthened its border measures against counterfeited trademarks, pirated copyright goods and counterfeit geographical indication goods, by introducing a possibility for customs to detain suspected fake goods.
The trade agreement also foresees modern rules to protect and enforce intellectual property rights.
With CETA, Canada has agreed to align its copyright protection regime with the following World Intellectual Property Organisation (WIPO) ‘internet treaties’
The internet treaties lay down norms preventing unauthorised access to and use of creative works online or in digital form that are important for our of our creative industries.
The agreement contains important provisions regarding limitations to the liability of internet service providers for infringing content, when they comply with a number of conditions, such as a system of effective notification of such content.
Canada has also agreed to ensure that rights holders can effectively use technology to protect their rights and to license their works online
Canada also agreed to better protect European artists’ rights by giving performers the exclusive right to authorise or prohibit the broadcasting by wireless means and the communication to the public of their performances.
These rights will ensure that artists, both European and Canadian, are rewarded for their creativity and have the incentives to continue to create new artistic works
Canada also agreed to strengthen the protection of plant varieties on the basis of the 1991 Act of the International Convention for the Protection of New Varieties of Plants (UPOV).
This means that innovative plant varieties that can lead, for example, to better yields, will be protected and are therefore likely to be introduced more quickly onto the Canadian market to the benefit of farmers and consumers.
The EU is a major provider of new plant varieties. This important research and innovation activity is protected by a sui generis type of intellectual property called the Community plant variety right. This is not related to the use of genetically modified organisms.
Canada also agreed to strengthen its border measures against counterfeited trademarks, pirated copyright goods and counterfeit geographical indication goods, namely by introducing a possibility for customs to detain fake goods ex officio
Canada will adopt or maintain procedures under which a rights holder may request its competent authorities to suspend the release of, or detain, goods suspected of infringing an intellectual property right.
Canada has also introduced the possibility for judicial authorities to take necessary provisional measures and to issue cease and desist orders directly against intermediaries that would bring counterfeit goods into the market.
CETA improves intellectual property rights for innovative pharmaceuticals in three ways
Find more information about IP protection in the EU.
The European IPR Helpdesk offers a Helpline service for direct support on intellectual property. For advice and support on IPR issues beyond the EU market.
Geographical indications of wines and spirits protected in Canada and the EU are listed respectively in Annex III(a) and Annex IV(a) of the 2004 agreement on trade in wines and spirit drinks.
In addition to the Geographical Indications (GI) protected under the EU and Canada Wines and Spirits agreement integrated in CETA, Canada has agreed to protect 143 geographical indications - distinctive food and drink products from specific towns or regions in the EU.
Canada will protect these traditional European products from imitations in much the same way as the EU does. It will be illegal to mislead consumers about the true origin of a product, for example by using flags falsely evoking a protected EU GI or the country where that GI product comes from. EU rights holders will be able to use an administrative process to uphold GIs rights in Canada, rather than rely only on lengthier and more complex proceedings in the domestic court system.
The list may be extended to other products in future if the EU and Canada agree.
More information about the protection of GIs in Canada thanks to CETA can be found in this practical guide.
With regard to the GIs listed under the 2004 agreement on trade in wines and spirit drinks, in order to be protected in Canada, the right holders of these GIs, need to register their GIs with the Canadian Intellectual Property Office.
The procedure to register is explained here.
The chapter on electronic commerce mentions in the general provisions that the Parties recognise the importance of facilitating the use of electronic commerce by SMEs.
CETA ensures legal certainty for EU and Canadian services suppliers by binding a high level of liberalisation in Canada and the EU.
The EU gains greater access to the Canadian market in particular for maritime services.
Canada cannot introduce new quotas or new discriminatory measures against EU service suppliers, except in a limited set of sensitive sectors. The agreement also guarantees EU service providers can benefit from
Canada has removed a number of limitations on citizenship and residency conditions for a range of professionals to practice in Canada, including
In telecommunications and postal and courier services, Canada has locked in future liberalisation for the first time.
A new opening of the Canadian maritime transport market will make it easier for EU maritime operators and their larger vessels to operate in Canada for feedering on the important route between Montreal and Halifax.
Both ports are significant on the Canadian east coast. Montreal is a large port handling 1.4 million standard containers (total of import and export containers in 2015) whereas Halifax handles 0.4 million twenty-foot equivalent units (TEUs) (2015).
The EU is by far the world leader in dredging services. With CETA, Canada is also opening up its market in dredging activities to EU operators, a market which is estimated to be worth between CAD 150 million - 400 million per year (approx. €104 million - 278 million per year).
In addition to the ambitious market access commitments undertaken, CETA also includes innovative and strong regulatory disciplines that complement and enhance the market access commitments undertaken by the two parties.
These regulatory disciplines include one of the most extensive and comprehensive sets of mutually binding disciplines on domestic regulation, dealing with licensing or authorisation regimes for nearly all services and investment activities. The text ensures fair and transparent regimes for all applicants and makes the authorisation process as smooth as possible.
The agreed package on temporary entry of professionals includes the following benefits
Contractual service suppliers benefit from better entry and stay conditions (such as non-discriminatory treatment with respect to Canadian suppliers) in additional sectors. These include
New profiles: the preferential access to Canada’s market and the non-discriminatory treatment in Canada will also apply to new categories of EU suppliers, as defined in the agreement: investors, short-term business visitors and technologists.
Canada will extend to spouses of EU intra-corporate transferees a treatment equivalent to that granted to spouses of Canadian intra-corporate transferees in the EU.
To facilitate the mobility of highly skilled professionals between the EU and Canada, CETA establishes a framework for mutual recognition of professional qualifications and determines the general conditions and guidelines for the negotiation of profession-specific agreements.
CETA provides a detailed framework for the negotiation and conclusion of Agreements on mutual recognition of professional qualifications (MRAs).
The agreement leaves it up to the associations of regulated professions of both parties to initiate the process of negotiating an MRA, by providing recommendations to the relevant CETA committee, and to agree on the specific conditions. Once the associations agree on the principles and following the procedures set out in the framework, the MRA becomes legally binding, ensuring that European professionals can have their qualifications recognised by the competent authorities in Canada and vice versa.
With CETA, EU companies can now bid for Canadian government tenders at all three levels of Government procurement: federal, provincial and municipal.
In Canada, Provinces and territories have jurisdiction over public goods such as
The procuring entities covered by CETA can be found in annexes 19-1 to 19-8
CETA also brings legal certainty that Canadian public agencies and bodies will not be able to discriminate against European companies – i.e. to restrict the companies’ access to a public tender.
Suppliers can challenge procurement decisions that they believe run contrary to the obligations of the Agreement. In Canada, the Canadian International Trade Tribunal (“CITT”) performs this role.
Canada has made the tendering process more transparent by publishing all of its public tenders on a single procurement website called CanadaBuys. Please note that you need to register on this page to be able to tender on the Canadian market.
To find out if you are entitled to participate in a given government procurement tender outside the EU use the My Trade Assistant for Procurement
Once CETA enters into force definitively, it will offer EU and Canadian investors greater predictability, transparency and protection for their investments in Canada and in the EU respectively.
CETA’s provisions on investment protection and the new investment court system (ICS) will ensure a high level of protection for investors, while fully preserving the right of governments to regulate and pursue public policy objectives such as the protection of health, safety or the environment.
The ICS represents a clear break from the old Investor to State Dispute Settlement (ISDS) approach and demonstrates the shared determination of the EU and Canada to establish a fairer, more transparent and institutionalised system for the resolution of investment disputes.
The investment provisions in CETA will also replace the eight existing bilateral investment agreements between certain EU Member States and Canada.
The threshold for the review of acquisitions of Canadian companies under the Investment Canada Act is substantially increased from the current CAD 354 million to CAD 1.5 billion. This applies to all EU investors other than those that are state-owned enterprises.
If you plan on investing in Canada you can find out more here.
NB: Investment protection and the investment court system, as well as portfolio investment market access, will not be provisionally applied in line with Council Decision (EU) 2017/38 of 28 October 2016 on the provisional application of the Comprehensive Economic and Trade Agreement (CETA) between Canada, of the one part, and the European Union and its Member States, of the other part (OJ L 11, 14.1.2017, p. 1080—“1081 (http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2017.011.01.1080.01.ENG).
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