Trade and Manufacturing Monitor https://www.kelleydrye.com/viewpoints/blogs/trade-and-manufacturing-monitor News and insight from our international trade practice group Sat, 29 Jun 2024 08:57:37 -0400 60 hourly 1 EU-Canada Free Trade Agreement (CETA) https://www.kelleydrye.com/viewpoints/blogs/trade-and-manufacturing-monitor/eu-canada-free-trade-agreement-ceta https://www.kelleydrye.com/viewpoints/blogs/trade-and-manufacturing-monitor/eu-canada-free-trade-agreement-ceta Tue, 26 Sep 2017 14:08:51 -0400 The Comprehensive Economic and Trade Agreement (“CETA”), the much anticipated free trade agreement between the European Union and Canada went into effect on September 21st. CETA is a terrific opportunity for global companies to take advantage of duty savings offered by the FTA as it expands market access for the EU and Canada through comprehensive tariff elimination across all sectors of the economy.

Under CETA, Canada and the EU have committed to eliminate or reduce tariffs on goods imported from the other party, provided they qualify under the CETA rules of origin. Tariffs on 98% of goods including apparel and footwear, industrial products, and fish and seafood and over 93% of food and agriculture goods were eliminated immediately upon entry into force of the agreement. Tariffs on the additional tariff lines will be eliminated gradually within seven years.

The agreement provides for three ways for goods to qualify:

  • The product qualifies as an “originating” product,
  • The product is imported using quotas on products with foreign components, or
  • The product qualifies under the product specific rules of origin if it contains partial foreign components.
There is also a benefit for Canadian sellers who import through the U.S. Merchandise may be manufactured in the EU and shipped through the U.S. to Canada and still qualify under the agreement if, while in the U.S., the merchandise may be unloaded and re-loaded, but remains under U.S. Customs control.

Now is a good time for companies to review their supply chains to see if they can take advantage of the CETA duty savings.

]]> Date Set for Provisional Application of EU-Canada Trade Agreement https://www.kelleydrye.com/viewpoints/blogs/trade-and-manufacturing-monitor/date-set-for-provisional-application-of-eu-canada-trade-agreement https://www.kelleydrye.com/viewpoints/blogs/trade-and-manufacturing-monitor/date-set-for-provisional-application-of-eu-canada-trade-agreement Tue, 11 Jul 2017 14:39:27 -0400 Canada and the European Union have announced that September 21st will be the date that the provisional application of Comprehensive and Economic and Trade Agreement (“CETA”) will come into effect.

Canadian Prime Minister Justin Trudeau and EU president Jean-Claude Juncker issued the statement after the G20 Summit on July 8th. The agreement will be “provisionally” applied until all member states have held ratification votes, but 98% of the deal will go into effect on September 21.

The deal will drop barriers between the economies of the European Union and Canada. Trade between the two sides amounts to more than 60 billion euros ($88 billion Cdn) a year, and the EU expects CETA to boost this by 20 per cent by removing almost all tariffs.

For companies that manufacture and sell in the EU and Canada, CETA is a great opportunity for customs duty savings.

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