Manitoba stands to benefit significantly from preferential access to the EU market. The EU is already Manitoba’s third-largest export destination and third-largest trading partner. Once in force, CETA will eliminate tariffs on almost all of Manitoba’s exports and provide access to new market opportunities in the EU. Exporters will also benefit from improved conditions for export. For example, CETA includes provisions that ease regulatory barriers, reinforce intellectual property rights and ensure more transparent rules for market access. CETA will provide Manitoba exporters with a competitive advantage over exporters from other countries that do not have a free trade agreement with the EU.
Merchandise exports from Manitoba to the EU (2011-2015)
2011
2012
2013
2014
2015
Value in millions of Canadian dollars
651.2
505.6
701.0
495.1
640.0
Principal merchandise exports from Manitoba to the EU, by sector (annual average, 2013-2015) (value in millions of Canadian dollars)
Agriculture and agri-food
Advanced manufacturing
Metals and mineral products
Other (including chemicals and plastics, fishing and fish products, forest products, information and communications technologies)
Value in millions of Canadian dollars
188.4
88.2
139.2
33.3
Eliminating tariffs on exports
On day one of CETA’s entry into force, 98 percent of EU tariff lines on Canadian goods will be duty-free, including those on key Manitoba exports such as manufactured goods and metals and mineral products. Another 1 percent will be phased out over a seven-year period. Once all phase-outs are complete, 99 percent of EU tariff lines on Canadian goods will be duty-free.
For agricultural and agri-food products, almost 94 percent of EU tariff lines on Canadian goods will be duty-free once CETA enters into force. This will rise to 95 percent once all phase-outs are complete, seven years after entry into force. This duty-free access will give Canadian agricultural goods, including a specified amount of Canadian beef, pork and bison, preferential access to the EU market.
Opening new markets for service suppliers
Under CETA, service suppliers will have preferential access to and greater transparency in the EU services market, resulting in better, more secure and predictable market access in areas of interest to Manitoba, such as professional services and construction, engineering, and architectural services.
The services sector is a key driver of Manitoba’s economy, accounting for 70 percent of the province’s total GDP and employing nearly 481,000 Manitobans in 2015.
Improving certainty for investments
CETA’s investment provisions will provide Canadian and EU investors with greater certainty, transparency and protection for their investments, while preserving the rights of governments to legislate and regulate in the public interest.
The stock of known foreign direct investment by Canadian companies in the EU totalled $210 billion at the end of 2015, representing 21 percent of Canadian direct investment abroad. The same year, known foreign direct investment from European companies in Canada totalled more than $242 billion, representing 31 percent of total foreign investment in Canada.
Securing access to EU procurement opportunities
Under CETA, Canadian firms can bid on contracts to supply their goods and services to the three main EU-level institutions (the European Commission, European Parliament and European Council), the EU member state governments, as well as thousands of regional and local government entities.
The EU government procurement market, estimated to be worth $3.3 trillion annually, holds significant potential for Canadian suppliers of goods and services.
