CETA IS A TREMENDOUS OPPORTUNITY FOR CANADA’S CHEMISTRY INDUSTRY
November 2, 2016
As a long-time supporter and advocate for the initiating, negotiating and signing of the Comprehensive Economic and Trade Agreement (CETA), the Chemistry Industry Association of Canada (CIAC) applauds the perseverance and leadership shown by the Government of Canada in establishing this agreement with the European Union. The Association welcomes the benefits that CETA will bring in tariff eliminations and investment potential.
Chemicals trade between Canada-EU amounted to €2.5 billion in 2015 and Canadian chemicals exports to the EU faced tariffs with rates up to 6.5 percent. Upon entry into force, CETA will immediately eliminate existing EU tariffs on these products, making them more competitive and creating the conditions needed for increased sales. Unlocking new markets for the chemistry industry will directly benefit Canada through more jobs and higher wages.
Moreover, investment plays an increasingly important part in the Canadian economy and is crucial in linking Canada to global value chains. The CETA investment chapter will provide Canadian and EU investors with greater certainty, stability, transparency and protection for their investments.
EU trade snapshot:
Canadian exports of chemicals and plastics to the EU were worth an average of $2.0 billion per year between 2010 and 2012.
The EU is already Ontario’s second-largest, Quebec’s second-largest, and Alberta’s fourth largest trading partner and export destination.
Ontario’s exports of chemicals and plastics to the EU were worth an average of $1.2 billion annually between 2010 and 2012.
Quebec’s and Alberta’s exports of chemicals and plastics to the EU were worth an average of $153 million and $73.6 million annually respectively between 2011 and 2013.
“The signing of CETA is ground-breaking and we must take advantage of it,” said Bob Masterson, CIAC President and CEO. “Ratifying this agreement as soon as possible is in the best interests of all Canadians.”