Canada and the EU acknowledged the successful conclusion of negotiations on the Comprehensive Economic Trade Agreement (CETA) on Sept. 26, 2014, at a joint summit and B.C. businesses and industry associations are upbeat about what the deal will mean for them.

One of the key benefits of the CETA is the elimination of over 98% of EU tariffs. Reducing and eliminating tariffs and non-tariff barriers will make British Columbia goods, technologies and expertise more competitive in the European Union, the largest trading block in the world.

Why It Matters:

Reducing costs and making it easier for trade and investment between Canada and the EU will increase opportunities for British Columbia businesses and industries and open a large market that was difficult to compete in, given the trade barriers.

The top benefits of the CETA include duty-free access for forestry and wood products, new markets for agricultural and agri-food products, new markets for fish and seafood, and improved access for professional services. These sectors are key economic drivers for job creation and B.C.'s economy.

Take B.C.'s forestry sector, which will benefit from the elimination of tariffs. In 2013, it directly employed 58,000 British Columbians. In the same year, British Columbia exported $326 million worth of wood and wood products to the EU. Those wood exports faced average tariffs of 2.2%, with peaks of 10%.

The province's fish and seafood sector is also poised to benefit from the deal. The EU is the world's largest fish and seafood importer, with 500 million consumers and global imports valued at $27 billion in 2012. In 2013, B.C. exported $54 million worth of fish and seafood products to the EU, a small fraction of B.C.'s total worldwide exports of $1 billion. Current EU tariffs on Canadian fish and seafood average 11%, with peaks of 25%. Salmon, accounting for the majority of B.C.'s fish and seafood exports to the EU, faced an average tariff of 5.5%. Again, these high tariff barriers are being eliminated under an ambitious Canada-EU trade agreement.

The potential for increased investment, access to the EU's government procurement market and movement of people under temporary entry provisions are further benefits for B.C.

Here's what B.C. organizations are saying about CETA:

John Winter, president and CEO, BC Chamber of Commerce -

"With this agreement, Canada is now at the forefront of removing global trade barriers. We now stand as the only jurisdiction with preferential access to both the EU and the U.S., which presents a unique opportunity for Canadian and B.C. businesses to expand their markets, creating jobs and economic opportunities across the province."

Christina Burridge, BC Seafood Alliance -

"The BC Seafood Alliance welcomes progress towards concluding CETA. High EU tariffs have limited market development for decades. Seafood is a global market, and we see market access as one of the key means to increase the value of the wild fishery resource."

Howard Donaldson, president, DigiBC -

"Once in effect, the Canada-EU trade agreement will have a number of benefits for B.C.'s high-tech sector. From improved patent protection, to tariff reductions on goods and improved labour mobility, this agreement will make it easier for B.C. tech companies to enter the European market - a growing export market for B.C.'s technology sector."

Rick Jeffery, CEO, Coast Forest Products Association -

"Coast Forest is pleased that the Government of Canada has concluded the CETA negotiations. Forestry in British Columbia is an export-driven industry, so the realization of tariff eliminations of up to 10% is an important step forward in strengthening our competitiveness and improving access to overseas markets."

Gurpreet Arneja, president, Punjab Milk Foods Inc. -

"On the day of the implementation of CETA, 98% of the tariff lines will be eliminated, thus opening the doors for processed agri-based products; in particular, products containing dairy ingredients and sugar. We are anxiously looking forward to the implementation date and I am sure a lot of Canadian companies share the same sentiment."

Learn More:

For more information on the benefits of the CETA for B.C.: http://www.international.gc.ca/trade-agreements-accords-commerciaux/assets/pdfs/ceta-aecg/provinacial_bc_eng.pdf

For more information on the CETA: http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/ceta-aecg/index.aspx?lang=eng

For more information on trade and investment in B.C.: http://britishcolumbia.ca

Media Contact:

Media Relations
Ministry of International Trade
778 977-0298