Comprehensive Economic and Trade Agreement

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Comprehensive Economic and Trade Agreement (CETA) is a free-trade agreement between Canada and the European Union (EU) and its member states. It has been provisionally applied, meaning that most of the agreement has been in effect, since September 21, 2017. CETA aims to reduce or eliminate barriers to trade between Canada and the EU, facilitating the flow of goods, services, and investment between the two regions.

Background

The negotiations for the Comprehensive Economic and Trade Agreement began in 2009, with the aim of strengthening economic ties and boosting growth and employment opportunities on both sides of the Atlantic. The agreement was signed on October 30, 2016, after seven years of negotiations.

Key Provisions

CETA covers various aspects of trade and economic activity, including:

• Tariffs: One of the primary objectives of CETA is the elimination of tariffs on a significant majority of goods traded between Canada and the EU. This includes the removal of tariffs on industrial products, fisheries, and most agricultural products.
• Services: The agreement provides for the liberalization of trade in services, including financial services, telecommunications, and e-commerce, making it easier for companies to provide services in each other's markets.
• Investment: CETA includes provisions to protect investors and ensure they are treated in a fair and equitable manner, while preserving the right of governments to regulate in the public interest.
• Intellectual Property Rights: The agreement enhances the protection of intellectual property rights, aiming to benefit creators and innovators in both regions.
• Sustainable Development: CETA includes commitments to uphold high environmental and labor standards, promoting sustainable development and responsible business practices.

Controversies and Criticisms

CETA has faced criticism from various groups, including environmentalists, labor unions, and some political factions. Critics argue that the agreement could undermine environmental protections, labor rights, and the ability of governments to regulate in the public interest. Concerns have also been raised about the investor-state dispute settlement (ISDS) mechanism, which allows investors to sue governments for alleged discriminatory practices.

Impact

The Comprehensive Economic and Trade Agreement is expected to have a significant positive impact on economic growth and job creation in both Canada and the EU. By removing trade barriers, CETA is projected to increase trade flows, lower consumer prices, and enhance competitiveness. However, the full effects of the agreement will become clearer as it is fully implemented and as economic conditions evolve.

See Also

• Free trade agreements of Canada
• Economic relations of Canada
• Economic relations of the European Union