Impact of Canada-EU trade deal

“Canada and the European Union have reached a ‘political agreement’ on free trade that the federal government says could boost Canada’s annual income by as much as $12 billion annually, and bilateral trade by 20 per cent,” wrote Susan Mas of the CBC News. Mas’ article continued, “While the deal is not expected to be ratified for at least two years, it is expected to remove 98 per cent of EU tariffs on a wide range of Canadian products. Here are five ways the Canada–EU Trade Agreement (CETA) will affect Canadians: 1. Cheaper goods When CETA comes into force, Canadians will pay less for items including food, wines and spirits, and even high-end European cars — if retailers and European manufacturers pass on the savings from the elimination of tariffs. For example, the 10 per cent EU tariff on passenger vehicles will be eliminated, as will tariffs on auto parts which run up to 4.5 per cent. Michael Hatch, the economist for the Canadian Automobile Dealers Association, applauded the elimination of tariffs on EU-imported cars and parts, saying in a written statement it ‘will translate into lower prices for Canadians.’ While Canadian documents make no mention of alcohol, a memo by the European Union says tariffs on wines and spirits from the EU will also be eliminated. About half of Canada’s wine imports are from the EU, the memo notes. Once the deal is in effect, most of the EU tariffs on agricultural products and seafood as well as other many other goods will be eliminated right away, and seven years later 95 per cent of products will be duty free, according to the documents outlining the deal released Friday.​” Read the full article here. | Raymond Matt, CFP, CLU, TEP, CHS

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