<aside> 🇺🇸 Canada - US Trade

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<aside> 🌎 Canada - US Country Relations

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<aside> 🇪🇺 Canada - EU Trade

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<aside> 🌎 Canada - EU Country Relations

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From left to right: the pharmaceutical, automotive, and agriculture industries are all affected by CETA, and have varying opinions on it.

Overview

Public opinion on the trade relationship between Canada and the European Union is not discussed as much as other trade relationships, such as the one between Canada and the United States. However, it is just as vital to the Canadian economy. This agreement was first signed on October 30, 2016, and has been ratified by Canada and sixteen member nations of the E.U. Overall, the agreement has been well-received.  The Government of Canada has touted it as being beneficial to the Canadian economy. However, think-tanks, stakeholders, and news outlets are all divided on whether or not this is actually true.

Think-tanks:

C.D. Howe Institute

A think-tank is defined as a research institute that performs research and advocacy concerning various topics. A well-known think-tank, the C.D. Howe Institute, claims that CETA is good for the Canadian economy as it would encourage companies that are not currently trading to do so, which will have a positive economic impact on both sides of the Atlantic. This is because CETA removes ninety-eight percent of tariffs previously associated with trade between these two parties.

According to this report, the European Union stands to gain 0.02% in GDP, and Canada would gain 0.24%. For companies that are already engaged in Canada-EU trade and still face tariffs or actioned non-tariff barriers (NTBs), CETA will have immediate effects in lowering the costs of market access.

For companies not yet engaged in Canada-EU trade, but looking for new and steadier opportunities in an uncertain international trade context, CETA will likely induce new entry into international trade. This report concludes that CETA is especially important because of the uncertainty regarding international trade, and it also promotes commitment to open borders, support for the multilateral system, and for sustainable economic development.

CFIB

Another think-tank, the Canadian Federation of Independent Business (CFIB), has also voiced their support for CETA. According to a survey done by CFIB, one-in-five small and medium-sized businesses were interested in trading with the European Union. Among those who already trade with Europe, more than half said they plan to increase the dollar value they import from and/or export to the region over the next three years.

This agreement came at a time where there was still a lot of uncertainty around the renegotiations of the North American Free Trade Agreement, which, according to CFIB, makes CETA even more vital for small and medium-sized businesses. However, one major recommendation that CFIB makes is that CETA needs to be promoted a lot more than it currently is.

The survey mentioned above also found that 56% of respondents were not at all familiar with the agreement. Because of this, CFIB made three recommendations:

  1. Clearly communicate how small business may benefit from CETA.
  2. Provide resources aimed at SMEs (small and medium-sized enterprises) that provide concrete steps on how to engage in trade with the EU.
  3. Work with the EU and other trade-related entities to build tools, such as a centralized website, that provide SMEs with clear and relevant information on what the customs processes are, what documentation they might need, what regulations may impact their specific shipments, with suggestions on how to address them.

Stakeholders

Pharmaceutical Industry:

Stakeholders, in this case, are defined as industries that are affected by a trade agreement. In terms of politics, they are essentially lobbyists. One major industry that has raised concerns with CETA is the pharmaceutical industry. To this industry, one of the most controversial issues about CETA is its proposal to extend intellectual property protection for patented drugs in Canada, which could significantly increase drug costs for Canadians.