The EU and Canada have been in talks about a bilateral trade pact worth at least $27 billion a year in additional trade. Both sides agreed in October 2008 to seek a "comprehensive economic agreement" to boost trade by lowering tariffs on goods and services and encompassing areas such as investment, regulation cooperation and rules of origin.
In 2008, trade in goods and services between the EU and Canada exceeded 70 billion Euros but it is estimated that the annual real income gain by 2014 would be 11.6 billion Euros for the EU (0.08% of EU GDP) and 8.2 billion Euros for Canada (0.8% of the GDP). Canada is the EU's 11th biggest trade partner and EU imports from Canada account for 1.6% of total EU imports according to Commission statistics. Canada's primary exports to the EU are:
Crude Materials (except fuel) which account for 19.4% of its exports to the EU and 7.4% of total EU imports,
Machinery and Transport equipment which account for 18.2% of its exports to the EU and 1.6% of the EU's total imports, and
Chemicals, which account for 14.5% of total exports and 3% of total EU imports.
Both sides officially announced the launch of negotiations at the Prague summit of 6 May and hope to reach a partnership agreement within the next two years.
Seal Clash
The summit took place despite the developing dispute between the EU and Canada caused by the European Parliaments decision to ban seal product imports from Canada (although there is a partial exemption for seal products from hunts conducted by the Inuit and other indigenous peoples in Canada as long as the products are for personal use and brought into the EU on a non-commercial basis). It is estimated that trade in seal-based products is worth around 4.2 million Euro's. Canada has threatened to launch a challenge at the World Trade Organisation if the Parliament proposal is adopted by the European Council of Ministers.
The ban also covers all so-called pinnipeds (including walruses and sea lions)
Keep an eye on our website for more developments on the EU-Canada trade negotiations as they happen...
"ITSs broad knowledge of Customs has proved invaluable"
{/tpfont}
D. Widdowson, Director of Financial Accounting Croda Chemicals Europe Ltd
{tpfont}
"ITS helped us to reach a successful conclusion when HM Customs tried to reject our proposed changes by using technicalities."
{/tpfont}
D. Suddens, Finance Manager Blanc Aero Industries UK Ltd
{tpfont}
"Rob has provided customs advice on many occasions, always demonstrating deep knowledge of his subject to help the business mitigate its duty liabilities."
{/tpfont}
Stuart Reid, Financial Director Komatsu UK
{tpfont}
"ITSs experience and knowledge has ensured projects were completed with a favorable result."
{/tpfont}
K R Maddison, Financial Controller Bard Limited
{tpfont}
"I have worked with Rob on complicated HMRC issues. As well as direct assistance, Rob has provided excellent training for operational staff. I recommend ITS."
{/tpfont}
G. Mitchell, Senior Operations Manager EPSON
{tpfont}
"Rob explains clearly, and gets on with people. He is very constructive and pragmatic. His loyalty to the reds is admirable, if misguided. One of my favourite Scousers!"
{/tpfont}
Nick Mallett, Partner DHM Stallard
{tpfont}
"ITS have highlighted significant cost saving opportunities."
{/tpfont}
CW Winter, Financial Controller Special Metals Wiggin Ltd.
