Romania-Canada Trade to Reach Historic Highs under CETA
On 15 February in Strasbourg, the European Parliament formally approved the Canada-European Comprehensive Economic and Trade Agreement (CETA). CETA will create vast new opportunities across the EU and in Canada, opening new markets for exporters, generating high-quality jobs for workers, and forging closer links between Canadian and EU member states’ economies., a press release sent to ACTMedia by the Embassy of Canada to Bucharest reads.
As CETA takes effect, the potential for Canada-EU bilateral trade is expected to grow by 23%, EU exports stand to increase annually by as much as €17 billion, and EU annual GDP growth by as much as €11.6 billion.
Romania will benefit directly from tariff reductions on several areas where its exports are competitive, such as leather and shoemaking, agriculture, shipbuilding, auto and auto parts manufacturing, ceramics, and textiles. For instance, under CETA, 93% of existing Canadian tariffs on agricultural goods will be eliminated. Exporters from EU countries will be able to sell wheat, flour, and wine to the Canadian market, tax free; while tariffs in the automotive sector, currently at 9.5%, will be cut to zero.
In addition to the reduction or elimination of tariffs on goods, CETA will boost investments and trade in services between Canada and Romania, allow for mutual recognition of professional qualifications, increase the competitiveness of Romanian businesses in the Canadian market, and reduce companies' costs without sacrificing current standards for environment protection and labour rights.
Kevin Hamilton, Canada’s Ambassador to Romania, lauded the successful conclusion of CETA, which will take full effect in Canada and across the EU, upon ratification by Canada’s parliament later this spring.
“CETA reflects our commitment to generate growth on both sides of the Atlantic through increased trade and investment,” said Ambassador Hamilton. “It underscores our commitment to advancing a progressive approach to international trade and, compared with more traditional trade pacts, offers a deeply reformed approach which will reinforce all countries’ right to regulate their industries, and which will make investor arbitration procedures fairer, independent and more transparent.”
“This progressive trade agenda reflects and promotes our shared values and reinforces cooperation and strengthening of international norms and standards on issues of mutual interest such as sustainable development and management, intellectual property, protection of ecosystems and endangered species, labour rights, and non-tariff barriers. CETA is a comprehensive free trade agreement that encompasses the full range of factors that now shape and influence trade in the global economy, and lays the foundation for greater voluntary cooperation between Canada and the EU.
“I am particularly pleased by the opportunities that CETA will create for Canada-Romania trade,” Ambassador Hamilton added. “Under CETA, Romania will be able to freely access the Canadian market. There will be enormous opportunities for Romanian exporters, and significant savings for Romanian consumers.”
“Canada, a G7 country already deeply integrated with the North American and Asia-Pacific economies, is home to one of the world’s largest, most innovative, and diverse marketplaces. Canadians are eager to welcome Romania and indeed all EU partners to discover the Canadian marketplace, as never before.”
Mihai Daraban, President of the Chamber of Commerce and Industry of Romania highlighted the benefits that CETA will bring to Romanian companies: “I am sure that entrepreneurs from Romania will explore this new market opportunity to expand their business. And I am sincerely advising those who are still reluctant: go to Canada, a huge and modern country. You can choose: go to Quebec – where you can speak French, go to Alberta – to offer your equipment and services in oil extraction, go to the Niagara Falls region- to do business in tourism, go anywhere to offer IT services.
Also, for Romania, CETA comes in combination with another important and I would say immediate benefit: the elimination of visas. That means that Romanian business people, starting later this year, will be free to travel to Canada to do their business without any delay. And, for business people, time means money! Because Canada has a large Romanian community, I am sure that Romanians living there will be among the first to boost economic and trade relations between our two countries, benefiting from CETA facilitation.
As one of the main beneficiaries of CETA, I hope that Romania will be among the first EU countries to ratify the treaty.”
In the next months, the Canadian Embassy to Romania in partnership with the Chamber of Commerce and Industry of Romania will organise a series of events aimed at making Romanian companies and public aware of the benefits of CETA for the Romanian economy.
Romanian companies interested in forging new and stronger ties to Canadian companies are welcome to fill in the following survey, issued by the Chamber of Commerce and Industry of Romania: Survey CETA.