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January 20, 2022

EU – Canada Comprehensive Economic and Trade Agreement (CETA) enters into force. What are the effects in Romania

The European Union – Canada Comprehensive Economic and Trade Agreement (CETA) entered temporarily into force as of Thursday, therefore, 98 percent of the customs duties were eliminated, Ambassador of Canada to Romania Kevin Hamilton (photo L) told a press conference organised on this occasion.

“Today is a historic day. As of this morning, all commercial exchanges are exempted from customs duties. Therefore this agreement is to create new and big opportunities both for European states and Canada, and it will open new markets for exporters, generating new high-quality jobs and strengthening the existent relations between Canada and the economies of the EU states”, he said.

According to Hamilton, the estimated effects are the growth by 23 percent of exports from the EU to Canada, each year, as well as an increase of 11.6 billion euro per year in respect to the GDP of the EU space.

“Trade relations between the EU and Canada are already very developed, but CETA will propel them at a higher level, bringing benefits for both sides. European partners are eagerly waiting to gain easier access to high-quality lumber from Canada, seafood, innovative medical devices and delicatessen such as maple syrup. At the same time, Canadians are eager to find a wider variety of European products in their stores, including fine Romanian wines, furniture, auto parts and naval equipment,” Canadian Ambassador to Romania Kevin Hamilton stated.

“We must underscore that 42,000 Romanian jobs are currently strictly dependent on trade with Canada. We hope this number will grow after the CETA agreement comes into force in full. (…) There are trade categories we tend toward. We are somewhat realistic about the Romanian economy’s current potential and I believe this import-export of services will in the future matter far more than goods per se. (…) The fact that some taxes will drop will have a positive impact on our economy,” Romanian Chamber of Commerce and Industry President Mihai Daraban stated.

Romania will directly benefit from the drop in tariffs for some of its most competitive export products, including leather products and footwear, agricultural products, ship construction services, auto vehicles and auto parts, ceramic and textile products.

As the CETA agreement gradually comes into force, it is estimated that the volume of bilateral EU-Canada trade will grow. Thus, EU exports to Canada will be higher by 23 percent annually. Likewise, the growth of the EU’s GDP will stand at 11.6 billion annually.

European Union exporters will be able to sell wheat, flour and wine on the Canadian market, without paying taxes. At the same time, export tariffs in the auto industry sector, which currently stand at 9.5 percent, will be cancelled as a result of CETA.

Also attending the event, Minister-delegate for European Affairs Victor Negrescu revealed that this agreement can bring important benefits to Romania’s business environment.

He added that the agreement’s ratification in Parliament might take place by the end of the year, depending on the calendar of the legislative forum.

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