Resources Quarterly - WINTER 2013 - page 12

12 |
The Comprehensive Economic and Trade Agreement:
CETA Moves Forward
O
n October 18th, 2013,
Canada and the Euro-
pean Union signed a tentative
agreement on a significant
trade deal. CETA, the Compre-
hensive Economic andTrade
Agreement, will have impacts
on a sweeping range of goods
and services, including the natural resources indus-
tries and, likely, energy.
The trade deal will reduce or eliminate duties on
more than 98% of tariff lines immediately upon
coming into force, with the vast majority being
eliminated. Remaining tariffs will be further re-
duced or eliminated entirely over a seven-year
period. The natural resources industries figure
prominently in CETA, including forestry, agricul-
ture, fisheries, and mining.
Forestry
Tariffs on forestry products will be eliminated
immediately when CETA goes into effect. Included
in this are wood products such as plywood and
prefabricated buildings. Current tariffs on forestry
products average 1.2% with a peak of 10%. Canada
is the fifth largest exporter of wood panels.
Metals and Minerals
Canada exported on average $20 billion annually
By Ania Swiatoniowski
in metals and minerals to the EU in 2010 through
2012. Current tariffs on metals, metal products,
and processed mineral products (such as petro-
leum oils) will be eliminated when CETA comes
into force. Most raw minerals are already exported
to the EU duty-free.
Fisheries
Canada exports to the EU an average $400 mil-
lion annually in fish and seafood with tariffs aver-
aging 11% and peaking at 25%. Upon entry into
force, 94% of tariff lines will be duty-free and 100%
will be duty-free within seven years. CETA will re-
quire the lifting of certain minimal protections for
Canadian fish processors.
Agriculture
CETA will eliminate 93% of tariff lines immedi-
ately. This includes wheat, barley and other grains,
fresh and frozen fruits and vegetables, maple
syrup, and many more food items. Canadian beef,
pork, and bison will receive preferential treatment
and be exported duty-free up to specified quanti-
ties.
CETA also addresses non-tariff barriers to trade
such as investment, intellectual property, mobil-
ity and qualifications of labour, cross-border trade
rules for services, amongst others.
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