Yesterday (September, 21st) the CETA agreement between Canada and EU came into force (in the scope not requiring full ratification by EU Member States)
CETA is a free trade agreement between EU and Canada, its key element being tariff elimination/reduction. As of its entry into force, 98% of tariff lines (types of goods) have been made subject to duty-free trade between the parties to the agreement, 1% of the tariff lines have been covered by a gradual elimination scheme.
Addionally, CETA introduces a wide range of other, far going facilitations in the economic cooperation between Canada and the European Union. These include:
- increased workforce mobility through reduced visa formalities and facilitated recognition of professional qualifications,
- admission of companies from EU Member States to the government procurement market in Canada, on equal terms with Canadian entrepreneurs,
- liberalisation of the flow of services, including financial services,
- facilitated certification of goods and access to the market of the other part.
All the above facilitations entered into force in transitional period (i.e. before complete ratification by EU Member States).
The protection of investments is the only material area for which the full ratification is a precondition to the entry into force. In this regard, CETA introduces revolutionary changes including, inter alia, the resolution of disputes concerning the protection of investments. However, in case of Poland, these changes will not materially affect the current relations between the two countries as the Polish-Canadian bilateral agreement for the promotion and reciprocal protection of investments will remain in force.
SSW, in cooperation with leading Canadian law firm Osler, and the Embassy of Canada to Poland, has prepared a unique comprehensive package of services – the Canada Box – dedicated to EU entrepreneurs who would like to leverage CETA to start their business on the Canadian market.
If you are interested in details on the opportunity CETA gives to your business, please contact:
Piotr Spaczyński, Partner, Attorney at law
Łukasz Karpiesiuk, Partner, Tax Advisor