Canada Style Free Trade Agreement with Eu

The Canada-European Union Comprehensive Economic and Trade Agreement, or CETA, is a free trade agreement opening up markets between Canada and the European Union. It was signed in 2016 after years of negotiations, and fully came into effect in September 2017.

CETA eliminates tariffs on most goods and services traded between Canada and the EU, and sets up rules to protect investments and intellectual property. It also includes provisions for opening up government procurement contracts and for mutual recognition of professional qualifications.

For Canada, the agreement offers increased access to the EU`s market of more than 500 million consumers, and is expected to boost exports by $1.5 billion annually. It also provides Canadian companies with the opportunity to bid on government contracts in the EU, which was previously not possible.

For the EU, CETA represents a strategic foothold in North America, and provides increased access to Canada`s natural resources, such as energy and minerals.

However, the agreement has not been without controversy. Critics have raised concerns over the impact on Canadian industries, such as dairy farmers, who fear an influx of European products will hurt their businesses. There have also been concerns over the impact on domestic job markets, and on the environment.

One of the most contentious issues has been the inclusion of Investor-State Dispute Settlement (ISDS) provisions, which allow companies to sue governments over changes to policies that impact their profits. Critics argue that this undermines democratic decision-making and gives corporations too much power.

Despite these concerns, the agreement has been hailed as a major step forward for Canada and the EU in terms of trade and economic cooperation. It serves as a model for other countries seeking to establish similar agreements, and is seen as a counterpoint to the protectionist policies being pursued by some other nations.

As the world becomes increasingly interconnected, free trade agreements like CETA are likely to become more common. While there are certainly risks and challenges involved, the potential benefits for businesses and consumers can be significant. It is up to policymakers and citizens to weigh the pros and cons of these agreements and to ensure that they are designed in a way that promotes sustainable growth and development.

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