Follow Canada Immigration and stay updated on Canadian economic developments: Canadian Prime Minister Stephen Harper and European Commission President José Manuel Barroso signed an agreement in principle on a Canada-EU free trade deal in Brussels on October 18.
Prime Minister Harper called this agreement a "historic victory for Canada." It is the largest trade agreement in Canada's history and holds significant importance for the Canadian economy, expanding Canada's access to the European Union market of 500 million people. It will greatly promote bilateral trade and investment and create job opportunities for Canadians. The news of the agreement was immediately welcomed by most Canadians, especially consumers. Barroso stated that the negotiations achieved a breakthrough, reaching an agreement that is "excellent for both the EU and Canada."
After more than four years of negotiations, this agreement has finally been settled, with both sides agreeing to eliminate up to 98% of tariffs. However, the content of the agreement still requires the consent of the European Parliament, member states, and their respective parliaments, and Canada also needs approval from its federal parliament and provinces. Once passed, investment and import-export activities between Canada and the 28 EU member states will become much more convenient and simple.
The European Union is Canada's second-largest trading partner, second only to the United States. The scale of this agreement also exceeds that of the North American Free Trade Agreement (NAFTA) between Canada, the United States, and Mexico.
The Council of the European Union estimates that once the bilateral free trade agreement is implemented, it will increase the value of trade and services between the EU and Canada by 20%. The value of trade and services between the two sides in 2012 was approximately $110 billion USD.