Ng noted that trade agreements are one thing, and they had seen really great numbers, but emphasized the need to explore what more can be done to help Canadian businesses enter any of the 27 EU member states and reciprocate by supporting similar efforts within Canada.
Canada and EU set to strengthen free trade and economic cooperation
Source Cryptopolitan
Canada and the EU are strengthening their economic cooperation and free trade through the Comprehensive Economic and Trade Agreement (CETA).
Carney stated, “When Canada and the European Union build together, our futures are stronger.”
Canada and the EU investigate ways to strengthen their relationship for mutual benefits
The cornerstone of the trade relationship between Canada and the EU is the Comprehensive Economic and Trade Agreement which has been applied provisionally since September 2017. CETA has scrapped 98% of tariffs from Canada to the EU and vice versa, greatly facilitating trade.
The trade agreement uses a phased strategy described in a tariff dismantling schedule to achieve this elimination. The tariff lines were removed initially, and the remaining ones, which include some grains, seafood products, and passenger cars, are being phased out gradually. This procedure seeks to lower business expenses while boosting Canadian exporters’ and producers’ competitiveness in the EU market.
Still, the agreement has yet to be fully ratified in some EU countries, including Belgium and Bulgaria. Mary Ng, Canada’s Minister of Export Promotion, International Trade and Economic Development, said on February 8 that Canada was looking to deepen economic ties with the EU while respecting world trade rules in the midst of US threats to impose tariffs.
Additionally, since 2017, the EU and Canada have enjoyed the benefits of a free trade agreement that increased bilateral trade by 65% and established a partnership for raw materials in 2021.
The recent election of Canadian Prime Minister Mark Carney has added momentum to this transatlantic collaboration. Carney, a former central banker with leadership experience in both Canada and the UK, has pledged to reduce Canada’s economic dependence on the US, which currently accounts for over 75% of Canadian exports. In his victory speech, Carney emphasized the need to pursue closer ties with Europe and Asia, including potential security and trade alliances with the EU.
She also said the EU would focus on small businesses and strategic minerals. Moreover, to reduce its reliance on China, the EU, particularly, was keen to forge alliances to ensure that Europeans had access to the metals, including cobalt, lithium, and nickel, needed for the energy transition.
Further evidence of Canada’s aggressive pursuit of trade agreements in the Indo-Pacific region can be found in the agreements it signed with Ecuador in February and Indonesia in December. The minister also made trips to Australia, Singapore, and Brunei.
Ng mentioned, “We are at the table with Southeast Asian countries, so the Association of Southeast Asian Nations. I took a very large delegation of Canadian businesses to the Philippines in December, to Indonesia, to markets like Vietnam, Malaysia, Japan, and Korea.”
CETA promotes prosperity and economic growth in EU-Canada trade
Ursula von der Leyen, the president of the EU Commission, said in an X post that she had a conversation with Mark Carney and congratulated him on his election. The occasion, she argued, was a perfect opportunity to highlight the close ties between Canada and the EU and the opportunities that lie ahead.
In addition, along with discussing ways to build on the achievements of CETA, she revealed that they had agreed to investigate deeper defense and economic security cooperation.
CETA seeks to ensure growth and prosperity on both sides of the Atlantic, increase trade and investment, and generate jobs. It also contains resolute pledges to protect the environment, uphold labor rights, and promote sustainable development.
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