European employers’ organisation BusinessEurope energetically defended the EU-Canada free trade agreement (CETA) on Wednesday 21 September, a trade deal that is due to be signed at the end of October. The organisation published a document highlighting the benefits of the deal for the EU economy as a whole and specific European industries. Stressing industry’s concern at the wave of protectionism that seems to be spreading over Europe,
BusinessEurope’s director general Markus J. Beyrer called for a stronger commitment from European politicians in defence of the economic interests of European companies around the world and for the rapid conclusion and signing of important trade deals, such as CETA with Canada, which he described as the most ambitious and forward-looking deal concluded by the EU to date, along with the TTIP with the United States.
CETA foresees eliminating customs duty on virtually all products and reducing technical barriers to trade, which will generate a rise in trade in goods and services between the EU and Canada by nearly 25% and a rise in EU GDP by nearly €12 billion a year. It will also provide tariff savings for EU exporters to the order of €470 million a year, along with benefits of up to €5.8 billion for service exporters, says BusinessEurope, praising the expected gain in mutual recognition of professional qualifications.
BusinessEurope stresses the advantages of "full and fair" opening of public markets, including at infrafederal levels (provinces and towns) in Canada, which will allow EU companies to be the first foreign companies to have the same access conditions as Canadian companies when it comes to public procurement in the country, be it rail, road construction or healthcare products. The association also highlights benefits due to stronger protection of intellectual property rights for European innovation and trademarks in Canada, particularly the special status for traditional agricultural products and protection for geographical indications.
Moreover, CETA includes "all the necessary guarantees" for ensuring that economic gains are not made to the detriment of consumer health and safety or democracy, says BusinessEurope, noting that the agreement reaffirms the rights of governments to regulate and decide on public policy. CETA protects public services in the EU based on the European approach and ensuring that nothing will stop countries from organising public services the way they see fit or will force them to privatise or nationalise any particular sector, argues the association.
Finally, CETA includes a chapter on protection of investment that commits the EU and Canada to non-discrimination between national and foreign investors and includes an investor-country dispute settlement mechanism that is more transparent and independent, including an appeals mechanism, permanent judges and explicit reaffirmation of the right of governments to legislate, says the association.
The document also describes expected benefits sector-by-sector, as explained by the relevant associations, such as pharmaceutical products (EFPIA), medicines (Medicines for Europe), information technology (Digital Europe), services (ESF), chemicals (CEFIC), textiles and clothing (Euratex) and spirits (Spirits Europe). (Original version in French by Emmanuel Hagry)