EU: Update on trade agreement (CETA) with Canada

EU: Update on trade agreement (CETA) with Canada

The Comprehensive Economic and Trade Agreement (CETA) between the EU and Canada will provisionally enter into force as of 21 September 2017. Among the provisions in the agreement are measures concerning:

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Elimination of import duties: CETA will eliminate most of the restrictions on moving across the Atlantic for temporary work, allowing for the mutual recognition of professional qualifications, and thus opens up the Canadian services market and encourages investment. In addition, an important aspect of CETA is that most import duties will be eliminated. As soon as the agreement takes effect, approximately 98% of all import duties between Canada and the EU will directly be eliminated. Another 1% of import duties will be phased out over a period of up to seven years.

In this respect is it important to note that in order to benefit from a 0% import duty rate, the products imported into Canada need to be of “EU origin” (likewise, of Canadian origin for products imported into the EU). The EU preferential origin criteria have been included in CETA. 

 

Registered exporter: Unlike most other free trade agreements, under CETA certificates of origin will not be issued by the customs authorities and the EUR 1 form will not be accepted as proof of origin. Instead, exporters will have to issue an ‘origin declaration’ themselves. The recently introduced Registered Exporter System (REX) must therefore be used. Only those companies that are registered in the REX database may issue origin declarations.

 

Read a July 2017 report prepared by the KPMG member firm in the Netherlands

Read an earlier report prepared by the KPMG member firm in Canada

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