Canada has passed legislation to implement a trade agreement with the European Union (EU).
The Comprehensive Economic and Trade Agreement (CETA) would remove almost all tariffs on goods moving between Canada and the EU Member States. Canadian businesses that import or export goods to Europe, thus, would no longer have to pay tariffs under the trade agreement.
The CETA would provide an opportunity for importers to decrease costs by claiming preferential tariff treatment. Still, not all goods travelling between Canada and the European Union would be eligible for reduced tariffs. In order to take advantage of preferential treatment, importers would be required to demonstrate that goods “originate” in either Canada or the EU.
The CETA still must be ratified by all EU Member States for the agreement to enter into force. There are some indications that Canadian businesses could see these tariffs removed as early as 1 July 2017.
Read a May 2017 report [PDF 57 KB] prepared by the KPMG member firm in Canada: Canada Moves to Eliminate Tariffs with EU
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