Umowa o wolnym handlu UE i Kanady (CETA) – jakie korzyści dla polskich przedsiębiorców
Have you heard of the EU's free trade agreement CETA with Canada and you are wondering how can your business benefit? Below you will find essential information on CETA.
What is CETA?
CETA (Comprehensive Economic Trade Agreement) is a trade agreement between the EU and Canada. The aim of the agreement is to release (e.g. customs duties) trade by goods and services, ensuring access to public procurement and mutual protection of investments. As a result of the conclusion of the CETA agreement, Polish and EU businesses will be the first foreign companies to get access to Canadian public procurement markets to the extent not offered by any other international agreement concluded by Canada.
What does CETA offer?
An EU free trade agreement with Canada has several advantages. Here are some of them.
- The abolition of customs duties for majority of the products. European companies will be exempted from 99 percent of duty which they must pay in Canada. The same applies to the Canadian firms exporting to the EU.
- Increasing the competitiveness of the European companies in Canada
- Making it easier for EU companies to bid for public contracts in Canada. EU firms will be able to bid to provide goods and services not only at the federal level but also - as the first undertakings outside Canada - at the level of provinces and municipalities. Information on the procedures will be more accessible to EU companies.
- Greater openness of the Canadian market for EU companies. EU firms will be able to participate more broadly in the Canadian market services. However, CETA does not cover public services, such as water supply, health or education,
- The opening of markets to European exports of food products. Many duties on agricultural products, processed food and drink products will be lifted. Almost 92 per cent of European agricultural and food products will be exported to Canada duty-free. For a few sensitive products from the EU such as beef, pork and sweet corn and dairy from Canada quotas limiting the export of such goods will be introduced. CETA will not open up, neither in the EU nor in the Canada market for poultry meat and eggs and will respect the EU entry price system. The agreement safeguards the interests of farmers via tariff rate quotas (quantitative restrictions) and transitional periods (time limit) in the liberalisation. European food products will have protection against copying (so-called protected geographical indication) on the Canadian market. Within the framework of CETA Canada has agreed to protect 143 geographical indications (PGI) - specific foods and drinks from specific geographical regions in the EU.
- Cutting costs for EU exporters relating to certification. The EU and Canada have agreed to accept each other's conformity assessment certificates in areas such as: electrical goods, electronic and radio equipment, toys, machinery, and measuring equipment. This means that, under certain circumstances, a conformity assessment body in the EU can test EU products for export to Canada according to Canadian rules and vice versa. EU firm wants to sell a toy in Canada, for example, will have to get its product tested only once - in Europe, where already obtain a certificate valid for Canada's conformity assessment market. Under CETA, the EU and Canada will also establish Regulatory Cooperation Forum.
- Making it easier for European professionals to work in Canada.
- Mutual recognition of certain qualifications.
- Invest more easily. Some barriers to investment will be removed. A new mechanism for dispute resolution will be introduced. The question of investment protection and dispute settlement, will still depend on the decisions of individual Member States.
Currently, CETA has been provisionally applied (agreement concluded but need to be ratified by the individual EU countries). From the provisional application of the agreement are excluded, inter alia, matters relating to:
- investment protection
- access to the investment market in the area of portfolio investment (but access to market for foreign direct investment is an exclusive competence of the EU),
- a system of courts for investments
What Polish industries could benefit from CETA?
From CETA can benefit, inter alia, the Polish:
- manufacturers of furniture,
- the soapers,
- manufacturers of clothing and accessories (excluding knitwear)
- manufacturers of foodstuffs, inter alia, vegetables, sugar and sugar confectionery and tobacco and tobacco products.
- manufacturers of devices with rubber,
- manufacturers of land vehicles and parts thereof,
- producers of plastics,
- shipping companies, shipyards.
- More on opportunities for Polish companies offered by CETA, as well as on the myths, which are linked to the contract, can be found on the website of the Ministry of Development.
- See also document Analysis of Economic and Trade Agreement CETA for the Polish economy and entrepreneurs.
- Additional information can be found on the website of the European Commission How does the CETA work