This presentation looks at the impact of CETA including policy changes that relate to support to industries like Dairy.

1. WHAT IS CETA AND WHAT
DOES IT MEAN TO CANADA
BY: PAUL YOUNG, CPA, CGA
DATE: NOVEMBER 10, 2016

2. AGENDA
• What is CETA?
• Canada Trade with Europe
• Key Quotes/Comments on CETA

3. WHAT IS CETA?
• The Comprehensive Economic and Trade Agreement (CETA) is a recently signed free-trade
agreement between Canada and the European Union.[1][2] When implemented, the agreement will
eliminate 98% of the tariffs between Canada and the EU.
• The negotiations were concluded in August 2014. All 28 European Union nations have approved CETA
with Belgium being the final country to approve.[3] Currently CETA is awaiting signing. The European
Council has confirmed it has adopted the decision to sign.[4] Justin Trudeau, Prime Minister of Canada
traveled to Brussels on 30 October 2016 to sign on behalf of Canada.[5]
• The EU claims the treaty will lead to savings of just over half a billion euros in taxes for EU exporters
every year, mutual recognition in regulated professions such as architects, accountants and engineers,
and easier transfers of company staff and other professionals between the EU and Canada. The
European Commission claims CETA will create a more level playing field between Canada and the EU on
intellectual property rights.[6]
• Critics oppose the treaty on the grounds that it will weaken European consumer rights, including those
concerning food safety, and that tariffs are already very low.[7] It has also been criticized as a boon only
for big business and multinational corporations, while risking net-losses, unemployment, and
environmental damage impacting individual citizens.[8][9] The deal also includes a
controversial investor-state dispute settlement mechanism. The agreement has prompted protests in
Europe and Canada.[10]
Source - http://waronwant.org/what-ceta and
https://en.wikipedia.org/wiki/Comprehensive_Economic_and_Trade_Agreement

4. TRADE AND CANADA
• Canada needs to exports in order for Canadian businesses to
access new markets.
Source – Stats Canada

5. CETA AND CANADA

6. CANADA TRADE WITH EUROPE
Source - http://trade.ec.europa.eu/doclib/docs/2006/september/tradoc_113363.pdf

7. CANADA TRADE WITH EUROPE
Source - http://trade.ec.europa.eu/doclib/docs/2006/september/tradoc_113363.pdf

8. COMMENTS / CETA
• Chamber of Commerce – Source - http://www.chamber.ca/media/news-releases/160229-
canadian-chamber-congratulates-government-on-moving-ceta-towards-ratification/ - Key
Quote “The CETA agreement will be a critical achievement when it’s ratified, giving Canada
excellent access to a massive market of over 500 million people,” said the Hon. Perrin Beatty,
President and CEO of the Canadian Chamber of Commerce. “Completing the legal agreement is a
major step towards closing the deal.” Today’s announcement also signifies an agreement has
been reached on the important issue of investor-state dispute settlement (ISDS). The new form of
ISDS will ensure governments do not discriminate against foreign investors, while maintaining
the independence to adopt new laws and regulations in areas like the environment, labour rules
and health standards.”
• Canadian Manufacturing Association – Source -
http://www.canplastics.com/economy/manufacturing-associations-praise-new-canada-eu-
trade-agreement/1002668180/ - Key Quote – “The Conservative government says the deal will
provide a $12 billion boost to the Canadian economy and create 80,000 new jobs; and industry
leaders predict Canadian firms will take full advantage of what amounts to the dismantling of
barriers – both tariffs and stifling rules and regulations – that have helped keep trade between
the two entities relatively modest. On the automotive side of the CETA pact, the EU will phase out
its 10 per cent tariff on imports, and Canadian automakers will be able to ship as many as
100,000 duty-free vehicles, up from the current 8,000, under relaxed rules-of-origin

9. COMMENTS / CETA
• Unifor – Source - http://www.unifor.org/en/whats-new/news/unifor-calls-release-ceta-details-
warns-repercussions-key-economic-sectors - Key Quote ““Much the same is true in forestry.
Canada already has tariff-free status for our main exports of cut lumber and newsprint, and
there are limited markets for the plywood and oriented strand board where tariffs will be cut. We
import, however, 10 times the amount of furniture from Europe as we sell them.” “We mostly sell
Europe raw materials. And they mostly sell us high-value, manufactured goods. We have a nearly
30 billion dollar manufacturing trade deficit with Europe. And that deficit will likely expand, not
shrink, under a free trade pact,” Dias told the committee.”
• Canada Forestry Sector – Source -http://politheor.net/positive-implications-of-ceta-on-the-
wood-industry-sector-in-the-eu-and-canada/ - Key Quote “When thinking about Canada most
of us would probably think about vast forest landscapes, right? Indeed, almost 9% of the world’s
forests is growing in Canada! Obviously, forestry and wood industry are essential contributors to
the national economy, as a matter of fact, Canada has the world’s largest forest product trade
balance – 19.3 billion dollars. On the other side, EU numbers are slightly lower. In terms of
the world’s forests EU accounts for 5% and the size and productivity of forestry-related
industries is diverse, being the leaders in this field Finland and Sweden. It is clear that the
business without tariffs, as imposed by CETA, would certainly facilitate trade by reducing the
costs for companies on both sides of the Atlantic. Moreover, this could be a good opportunity for
companies of all sizes to enter the market in an easier way and start their businesses across the

10. ISSUES FOR CANADA
• Port capacity
• Pipelines
• Lawsuits
• All trade deals include the ability to sue
• How do you mitigate lawsuits
• All government need to reduce the red tape as part of supporting Foreign Direct
Investment

11. SUMMARY
• CETA - http://www.cbc.ca/news/politics/canada-europe-trade-
signing-sunday-1.3827903
• What’s next
• It will take time to bring down tariffs as part of flow of goods
• Who will see the benefits?
• Exports could grow by $12B. For each $1B of exports there could 5,500 jobs.
• Biggest winner will be manufactured goods -
http://www.inews880.com/syn/110/131652/alberta-would-benefit-from-new-
eu-trade-deal

12. COMPENSATION / DAIRY INDUSTRY
• Harper “In October 2015, the Conservatives promised Canadian dairy, egg and poultry
farmers $4.3 billion in compensation over 15-years funding, to cover concessions made
on supply management under CETA and the Trans Pacific Partnership.: – Source -
http://ipolitics.ca/2016/05/02/dairy-industry-government-to-meet-on-ceta-
compensation/
• Freeland “Under the pair of initiatives, the government will set aside $250 million over five
years to support new technologies, such as robotic milkers and automated feeding
systems, on dairy farms. It will also invest $100 million to help dairy processors
modernize the equipment in their plants. -
http://www.canadianmanufacturing.com/financing/preparing-for-ceta-fallout-feds-
pump-350m-into-dairy-industry-178682/
• Summary:
• Harper had promised approximately $286M/year for 15 years.
• Liberals promised only $250M?
• So, why was this ignored in the post?