EU-Canada Comprehensive Economic Trade Agreement

1. 3RD TUESDAYS…A THOUGHT LEADERSHIP SERIES
EU-Canada Comprehensive Economic Trade Agreement
Keynote Speaker: Dr. Jayson Myers,
President & CEO Canadian Manufacturers & Exporters

2. ‘3RD TUESDAYS’
Thank-you to our event sponsor:
Thank-you to our media sponsor:

3.  Canada's Technology Triangle Inc. is a not-for-profit, public-private regional Foreign
Direct Investment (FDI) partnership that markets the competitive advantages of the
Waterloo Region to the world, to attract businesses, investment and talent to the
Region.
 As an information provider and business network facilitator, CTT Inc. is typically the
initial point of contact for enterprises outside the Waterloo Region interested in start-
up, expansion or relocation.
ABOUT US

4. CTT INC. BUSINESS DEVELOPMENT TEAM
John G. Jung
Chief Executive Officer
Jason Kipfer
Senior Business Development Officer
Catherine Bischoff
Senior Business & Marketing Analyst
Ann Gray
Director of Corporate
Development & Administration
Stephanie Baskerville
Business Development
Coordinator

5. www.cme-mec.ca
Canada’s Comprehensive Economic
& Trade Agreement with Europe
Seizing Business Opportunities Now

6. www.cme-mec.ca
The CETA
• Comprehensive Economic and Trade Agreement (CETA) between
Canada and the European Union
– Agreed in principle October 2013
– A few details still to be ironed out (regulatory cooperation)
– “Scrubbing” and translation into legalese required
– Translation into 28 languages
– CETA needs to be ratified by the Canadian Parliament
– Changes in provincial and national legislation need to be ratified by
respective legislatures
– Political agreement needs to be ratified by the European Parliament
– CETA likely to be implemented in late 2015/early 2016

7. www.cme-mec.ca
The Wayne Gretzky of Trade Deals
• Why is Canada’s CETA with the European Union “the Great One”?
– Most extensive economic and trade agreement ever concluded by Canada
– Most comprehensive and ambitious trade agreement ever concluded between two
major economies
– CETA will give Canadian businesses preferred access to the largest, richest, most
technologically sophisticated market in the world
– Addresses most of the tariff and non-tariff barriers to trade and investment that
have made the EU a daunting market for Canadian exporters
– Goes to where the puck will be in international business – services, standards,
regulations, labour mobility, procurement, investment, IP, as well as tariffs
– Canada will gain “National Treatment” and “Most Favoured Nation” status
– Sets a new standard for 21st century trade agreements
– All provincial and territorial governments a part of the negotiations and supportive
– Canada the only country with extensive preferred access to both NAFTA & the EU

8. www.cme-mec.ca
Opportunities for Canada
• The European Union
– 28 member states
– 500 million consumers
– World’s largest economy = $17 trillion
– World’s largest importer of goods ($2.3 trillion)
– $2.7 trillion procurement market
• Joint Canada-EU economic study
– 20% increase in bilateral trade
– $12 billion annual increase in Canada’s GDP
– 80,000 new jobs for Canadians
• Likely a gross underestimate
– New markets will open up as a result of the CETA (procurement, services)
– Growing number of technology and business partnerships among small and mid-sized
companies – EU companies looking to invest /do business in Canada
– CETA will drive more investment in Canada
– Connections through European MNEs to supply chains around the world

9. www.cme-mec.ca
Opportunities for Ontario Business
• Advanced manufacturing technologies – automation, robotics, production
equipment, materials, software and ITC systems
• Automotive
• Aerospace
• Pharmaceuticals
• Chemicals and plastics
• Agri-food
• Agricultural and forestry products
• Consumer products
• Equipment and technologies for industrial, construction, procurement
markets

10. www.cme-mec.ca
Positioning for Success
• How do we find new customers?
– New export markets
– New supply chains
• How can we compete?
– Focus on customer solutions
– Differentiate on the basis of specialization through design, engineering, technological
innovation, quality, customer service
– New customers will drive product and process innovation, adoption of new technologies
and new skills
• How can we lower the risk/cut the cost of developing new markets?
– Lean product/export development
– Partnerships – based on qualified leads
• How can we win investments/product mandates?
– Leverage Canada’s privileged location vis-à-vis NAFTA and EU
– Continuously improve infrastructure/business environment within Canada

11. www.cme-mec.ca
How the CETA will Help
• Certainty with respect to rules and dispute settlement
• Simplifies trade procedures and reduces export costs
– 98% of all EU tariffs eliminated when CETA comes into force
– Seven year tariff phase out for autos, seafood, come agricultural products, ships
– National treatment of goods that Europe imports from Canada
– Rules of origin that recognize integrated supply chains
– Quotas for autos, textiles, processed foods
– Autos – 50% rule of origin (55% after seven years), quota of 100,000 vehicles,
cumulation provision in case of EU-US FTA, cooperation on integrated standards
– Automated and transparent customs procedures
– Reaffirms rights for trade remedies, subsidies
– First agreement on regulatory cooperation in any Canadian trade agreement
– Equivalency provisions and cooperation mechanisms for technical & health regulations
– Acceptance of test results and product certification
– Free access to EU dairy market (increased quota for Canadian cheese imports, no impact
on other supply managed goods)

12. www.cme-mec.ca
How the CETA will Help
• Enables services and investment
– Negative list of services liberalization (exclusions for health care, education, culture,
public services)
– Equitable treatment of investors
– Improved investor-state dispute settlement procedures
• Easier labour mobility
– Mutual recognition of professional qualifications
– Streamlined recognition of foreign standards and credentials
– Temporary entry for intra-corporate transferees, investors, short term business visitors
• Preferential access to European procurement markets
– Canadian companies treated like European companies – access and thresholds
• Protects Intellectual Property
– Strengthens protection for pharmaceuticals, common rules for copyright, patents,
trademarks
• Enhances institutions and dispute settlement procedures

13. www.cme-mec.ca
A “Shout Out” to Canada’s Negotiators
• Steve Verheul – Chief Negotiator
• Negotiating Team
• Minister Ed Fast
• Prime Minister Harper

14. www.cme-mec.ca
The Power of Partnerships
• CETA opens a door – it’s up to Canadian businesses to take advantage of
the opportunities
• A broad range of support to identify opportunities and reduce risk
– CME – identifying leads for business and technology partnerships and
soft landing services in Europe
– CTT – growing investment and supply chain opportunities
– Local business networks – expert advice from business colleagues
– Trade Commissioner Service
– Export Development Canada
– NRC/IRAP
– Federal and provincial programs that can help
– Colleges and universities
– Customers, suppliers, financial and business services

15. www.cme-mec.ca
Identifying Leads: Enterprise Europe Network
• CME is Canada’s hub for accessing the Enterprise Europe Network – a network of
intermediary organizations (industry associations, universities and innovation
centres, economic development agencies) in 54 countries that work to identify
qualified leads for international business and technology partnerships for SMEs
• Through our participation in EEN, we are able to respond to incoming offers and
requests for partnerships and profile Canadian companies that are looking for
partners in other markets
• In Canada, we are partnering with the Trade Commissioner Service, NRC, and
other organizations (in what we are calling the Enterprise Canada Network) to help
them identify potential opportunities for technology partnerships for their clients
– providing access to EEN on a subscription basis
• Our membership in EEN also provides us contact with organizations throughout
the network that will help us provide business intelligence for our members, host
CME business missions, and arrange B2B networking opportunities

16. www.cme-mec.ca
EEN Database Snapshot
• 13,051 profiles posted (as of 2013)
– 5,833 technology profiles
– 7,146 business profiles
– 72 research profiles
• 32,045 partnership opportunities across 25 industry
sectors

17. www.cme-mec.ca
Technology Partnership Opportunities
Electronics, IT,
Telecommunications
20%
Industrial,
Manufacturing &
Processing
18%
Materials
7% Transport
4%
Construction
5%
Energy
11%
Physical & Exact
Sciences
4%
Measurement, Testing,
& Standards
2%
Medicine, Human
Health
8%
Biology, Biotechnology
3%
Agriculture, Forestry,
Marine Resources
3%
Agrifood
5%
Safety, Waste
Management,
Environment
8%
Society & Economy
2%

18. www.cme-mec.ca
Opportunities by EU Member
Country Opps Country Opps Country Opps
Austria 88 Germany 849 Netherlands 299
Belgium 142 Greece 253 Poland 1030
Bulgaria 178 Hungary 416 Portugal 156
Cyprus 9 Ireland 97 Romania 791
Czech Rep. 167 Italy 1351 Slovakia 217
Denmark 104 Latvia 80 Slovenia 154
Estonia 44 Lithuania 103 Spain 1166
Finland 49 Luxembourg 12 Sweden 196
France 777 Malta 26 U.K. 1200

19. www.cme-mec.ca
For More Information
• Enterprise Canada Network
• http://ecn.ignitewebsolutions.com/english/
• Phil Turi, International Business Services Director, CME
• Philip.Turi@cme-mec.ca
• Trade Commissioner Service
• www.international.gc.ca

20. ‘3RD TUESDAYS’
Thank-you to our event sponsor:

21. Thank you!
Join us for our next 3rd Tuesdays Thought Leadership Series Event
April 15th
Waterloo Region-Toronto Super Corridor – The Waterloo Region GO-Train Proposal