Question Period Note: Canada-European Union Comprehensive Economic and Trade Agreement (CETA)

Canada's commercial relationship with the EU, including the role of CETA

• Current global uncertainty reinforces the need to strengthen collaboration among friends and close trading partners, including the EU.
• Diversifying our trade and investments, including by leveraging CETA, is more important than ever.
• CETA is a comprehensive, ambitious, and inclusive agreement that upholds and promotes the values that Canada shares with the EU.
• CETA includes the elimination of 99% of tariff lines, providing a predictable, transparent and accessible business environment.
• The EU, as a combined market of 27 Member States, is Canada's second largest trading partner after the United States. In 2024, total Canada-EU goods and services trade was $161.9 billion.

· CETA covers virtually all sectors and aspects of Canada's trade relationship with the EU, which as a combined market of 27 Member States is Canada's second trading partner after the United States.
· Two-way goods and services trade between Canada and the EU totaled $161.9 billion. Canada-EU merchandise trade has increased by 64% compared to pre-CETA levels.
· In 2023 (latest available data), EU FDI stock in Canada was an estimated $158.1 billion, with Canadian affiliates of EU companies generating 439,397 jobs in Canada. Canadian direct investment in the EU was $287.2 billion, with Canadian companies generating 257,969 jobs in EU Member States.
· CETA's outcomes in areas such as services, investment, labour mobility, and government procurement are more ambitious than in any previous agreement negotiated by Canada.
· CETA has been provisionally applied since September 21, 2017, with most parts of the agreement in force, including tariff elimination, origin and tariff-rate quotas, commitments on services, business mobility, and government procurement obligations.
· To enter fully into force, CETA must be ratified by all 27 Member States through domestic legislative processes. There is no deadline for Member States to complete ratification. In today's geopolitical context, full ratification of CETA is important to lock in trade and investment certainty and ensure that our citizens and industries continue to benefit.
· To date, 17 Member States have ratified CETA: Austria, Croatia, Czechia, Denmark, Estonia, Finland, Germany, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Portugal, Romania, Slovakia, Spain, Sweden.
· 10 Member States have yet to ratify the agreement: Belgium, Bulgaria, Cyprus, France, Greece, Hungary, Ireland, Italy, Poland, Slovenia.

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