The EU - Canada Comprehensive Economic and Trade Agreement (CETA) is a new trade agreement that is expected to facilitate exchange of goods and services between these two countries. The EU and Canada have signed the Agreement on October 30, 2016. However, before the agreement enters into force, it needs to be approved by the EU Parliament and then ratified by each of the EU Member States.
What are the expected benefits for the food & beverages industry?
This agreement is expected to open up Canadian market for European food and drinks exports, while protecting traditional European food and drink products (including Geographical Indications) from being misused.
The removal of many custom duties should allow EU farmers to export nearly 92% of its agricultural and food products, lowering the prices in Canada.
The Canadian industries will benefit from this advantage, because when CETA will apply, Canada will be one of the few countries in the world to have preferential access to the world’s two largest economies, the US and EU.
CETA is expected to be beneficial for producers in the sectors of wine and spirits, fruit and vegetables, processed products, cheese and EU’s products with Geographical Indications (GI) For example, a product with a protected geographical indication, Dutch Gouda cheese could be sold in Canada under this name, only if it comes from Gouda in Holland.
Quotas will still regulate several sensitive products, like pork, beef and sweetcorn for the EU and dairy products for Canada. All the import from Canada need to be compliant with EU food safety rules, i.e. the EU will admit only the import of hormone-free meat.If you require access to Canadian or EU food legislation, all in one place, Food News Monitoring System might be a right solution for you. At Selerant, we have a legislation database of over 90 countries (and growing!). Contact us for more information.