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The Comprehensive and Economic Trade Agreement

CHAPTER ONE - GENERAL DEFINITIONS AND INITIAL PROVISIONS

This chapter explains the terms used in the agreement. This is so Canadian and European partners have a common understanding of the language used in the agreement.

CHAPTER ONE - General definitions and initial provisions

 

CHAPTER TWO - NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS

This chapter describes how CETA will lower or remove duties, taxes or other import fees for goods between the EU and Canada. CETA will remove most of these when it enters into force, and a few others more gradually. Both the EU and Canada commit to treating the goods they import from each other no less favourably than goods made domestically.

The chapter also outlines certain restrictions and controls that CETA will put or keep in place, such as to protect both sides' rights as WTO members or ensure the origin of the goods they import.

CHAPTER TWO - National treatment and market access for goods

 

CHAPTER THREE - TRADE REMEDIES

In this chapter the EU and Canada reconfirm their rights and commitments under World trade Organization rules. These rules mean that each World trade Organization member can counteract the negative effects of unfair trade practices on their domestic industry, for example if another member 'dumps' goods on its market at below the cost of production, or subsidises production of those goods.

The chapter also includes:

  • rules on transparency including:
    • investigations launched into possible cases of unfair trade practices
    • measures taken to counter them
  • mechanisms for consultation and information sharing to avoid these from occurring.

CHAPTER THREE - Trade remedies

 

CHAPTER FOUR - TECHNICAL BARRIERS TO TRADE

In this chapter, the EU and Canada commit to working more closely together on technical regulations for testing and certifying products. The aim is to enable regulators to:

  • exchange experiences and information
  • identify areas where they could cooperate more closely

This cooperation is voluntary. It can't in any way force the EU or Canada to lower their standards.

CHAPTER FOUR - Technical barriers to trade

 

CHAPTER FIVE - SANITARY AND PHYTOSANITARY MEASURES

This chapter covers food safety and animal and plant health. Since 1998, the EU and Canada have had a Veterinary Agreement in place. This applies to animals and any products made from them. Under CETA, the provisions of the SPS chapter replace the Veterinary Agreement, but the work that took place under the agreement continues.

This chapter also ensures that measures by either side to ensure food safety and animal and plant health do not create unjustified barriers to trade, but rather facilitate trade.

CHAPTER FIVE - Sanitary and phytosanitary measures

 

CHAPTER SIX - CUSTOMS AND TRADE FACILITATION

This chapter aims to streamline customs procedures and make them more efficient. It ensures:

  • transparency – e.g. making customs requirements public, and providing information online
  • streamlined, risk-based procedures – e.g. risk management and pre-arrival processing rather than requiring each shipment offered for entry to be examined
  • certainty and predictability – e.g. a transparent, efficient appeals process, reliable advance rulings on tariff classification

CHAPTER SIX - Customs and trade facilitation

 

CHAPTER SEVEN - SUBSIDIES

This chapter increases transparency around government subsidies to companies. Both the EU and Canada have to notify each other if they subsidise the production of goods. And they have to provide further information on any subsidies they give to companies providing services, if the other side asks for such information.

In addition, the chapter sets up a mechanism to enable the EU and Canada to consult each other on subsidies that may negatively affect trade between them, and to find solutions if a subsidy is found to do so. The EU and Canada also agree not to subsidise exports of agricultural products to each other's markets.

CHAPTER SEVEN - Subsidies

 

CHAPTER EIGHT - INVESTMENT

This chapter sets out measures to open up investment between the EU and Canada, and protect investors and ensure that governments treat them fairly.

The chapter:

  • removes barriers to foreign investment, such as foreign equity caps or performance requirements
  • allows EU investors to transfer their capital in Canada back to the EU, and vice versa
  • puts in place transparent, stable and predictable rules governing investment
  • guarantees that the government will treat foreign investors fairly
  • sets up a new Investment Court System, or ICS, to enable investors to resolve investment disputes with governments quickly and fairly. For more details on the ICS, click here.

The chapter also confirms the right to regulate at all levels of government.

CHAPTER EIGHT - Investment

 

CHAPTER NINE - CROSS-BORDER TRADE IN SERVICES

This chapter makes it easier for EU individuals and companies to provide services to Canadian customers, and vice versa. It covers:

  • services such as legal services, accountancy, transport & telecom services, supplied from the EU into Canada, and vice versa
  • services such as tourism, where a Canadian consumer has to move physically from Canada to the EU to consume that service, and vice versa.

The EU and Canada commit to ensuring fair, equal access to each other's services markets. In certain service industries the EU and Canada have made exceptions because, for example, the sectors in question - such as audio-visual services, certain aviation services - are sensitive. In addition, this chapter fully upholds governments' ability to regulate and supply services in the public interest.

CHAPTER NINE - Cross-border trade in services

 

CHAPTER TEN - TEMPORARY ENTRY AND STAY OF NATURAL PERSONS FOR BUSINESS PURPOSES

This chapter provides legal certainty for trained workers, who temporarily enter the EU or Canada to do business. It states in a transparent, predictable way:

  • the types of professional covered, and the sectors in which they can operate
  • the maximum length of their stay
  • that EU professionals will enjoy equal treatment in Canada and vice versa.

CHAPTER TEN - Temporary entry and stay of natural persons for business purposes

 

CHAPTER ELEVEN - MUTUAL RECOGNITION OF PROFESSIONAL QUALIFICATIONS

This chapter creates a framework that would allow Canada to recognise professional qualifications earned in the EU, and vice versa. This would mean professionals on both sides of the Atlantic could practise in each other's territory. CETA leaves it to the relevant authorities or professional bodies in both the EU and Canada to negotiate a proposal on so-called mutual recognition that can then be integrated into CETA.

CHAPTER ELEVEN - Mutual recognition of professional qualifications

 

CHAPTER TWELVE - DOMESTIC REGULATION

This chapter ensures that all regulations which the EU and Canada issue are publicly available, easily understandable, and reasonable. This is to ensure that domestic regulations in the other territory don't act as an unfair barrier to trade for EU or Canadian businesses. In some cases the authorities in the EU or Canada might grant a licence to a company or an individual to supply a service or pursue a particular economic activity. In other cases they might impose qualification requirements.

In either case, they must do so punctually and consistently. This chapter excludes some areas of regulation, such as water distribution or other public services.

CHAPTER TWELVE - Domestic regulation

 

CHAPTER THIRTEEN - FINANCIAL SERVICES

This chapter enables financial institutions and investors in the EU and Canada to benefit from fair, equal access to each other's markets. Certain conditions apply, and the provisions comply fully with the prudential and regulatory standards in place in the EU and Canada. In addition, financial services firms can only offer their services cross-border in a limited number of sectors, such as certain insurance and banking services.

This chapter also creates a Financial Services Committee to help both parties supervise and regulate the sector. The chapter allows the EU and Canada to protect the security and integrity of their respective financial systems. And it excludes areas such as pensions and social security.

CHAPTER THIRTEEN - Financial services

 

CHAPTER FOURTEEN - INTERNATIONAL MARITIME TRANSPORT SERVICES

This chapter establishes the framework for regulating the maritime transport market between the EU and Canada. It includes measures to ensure fair and equal access to ports and port services for commercial ships. It also provides definitions so that the commitments made are clear.

CHAPTER FOURTEEN - International maritime transport services

 

CHAPTER FIFTEEN - TELECOMMUNICATIONS

In this chapter the EU and Canada commit to giving each other's businesses fair and equal access to public telecommunications networks and services. It includes rules to ensure competition in the telecommunications market. And it confirms customers' right to:

  • keep their number when switching providers and
  • receive telecommunications services in remote areas

CHAPTER FIFTEEN - Telecommunications

 

CHAPTER SIXTEEN - ELECTRONIC COMMERCE

This chapter covers any business done electronically (e.g. online shopping). It includes rules that ensure that personal information on the internet is protected and that online services will not include customs duties. Canada and the EU also promise to cooperate on issues related to e-commerce, for instance on combatting spam.

CHAPTER SIXTEEN - Electronic commerce

 

CHAPTER SEVENTEEN - COMPETITION POLICY

In this chapter the EU and Canada agree to prohibit and sanction practices which distort competition and trade. These include:

  • cartels
  • abusive behaviour by companies with a dominant market position
  • anti-competitive mergers.

Both sides will respect rules to ensure they act fairly and transparently when applying their competition laws and pursuing investigations into companies which might be breaking them. They also recognise the importance of cooperation between their respective competition authorities.

CHAPTER SEVENTEEN - Competition policy

 

CHAPTER EIGHTEEN - STATE ENTERPRISES, MONOPOLIES, AND ENTERPRISES GRANTED SPECIAL RIGHTS OR PRIVILEGES

In this chapter the EU and Canada agree not to intervene in or potentially distort the level playing field for private companies. Both sides will ensure that state-owned enterprises, monopolies, and enterprises granted special rights will not discriminate against goods, services, or investments from the other party.

This ensures that competition between private and state-owned companies will not be negatively affected. The rules ensure that both parties have the full freedom of choice in the way they provide public services to their citizens.

CHAPTER EIGHTEEN - State enterprises, monopolies, and enterprises granted special rights or privileges

 

CHAPTER NINETEEN - GOVERNMENT PROCUREMENT

This chapter specifies the areas where EU and Canadian businesses can provide goods and services to each other's governments, at every level of government - national, regional and provincial, and local. For this to happen, businesses must meet specific rules on:

  • the value of the goods, services, or contract involved
  • who the customer is
  • the goods and services that are allowed (in the appendix)

CHAPTER NINETEEN - Government procurement

 

CHAPTER TWENTY - INTELLECTUAL PROPERTY

This chapter builds on existing international intellectual property (IP) laws to develop regulations and standards that are consistent between the EU and Canada. The chapter also outlines procedures to protect against IP violations, and defines areas where both parties can cooperate further.

 

CHAPTER TWENTY-ONE - REGULATORY COOPERATION

This chapter builds on an existing agreement between the EU and Canada on regulatory cooperation. This chapter encourages regulators to exchange experiences and information, and identify areas where they could cooperate. All cooperation is voluntary and regulators in the EU and Canada retain their power to adopt legislation.

CHAPTER TWENTY-ONE - Regulatory cooperation

 

CHAPTER TWENTY-TWO - TRADE AND SUSTAINABLE DEVELOPMENT

In this chapter the EU and Canada recognise that economic growth, social development and environmental protection are interlinked. Both sides agree to ensure economic growth supports their social and environmental goals. The chapter also creates a Joint Committee on Trade and Sustainable Development, and commits both sides to promoting forums with interest groups.

CHAPTER TWENTY-TWO - Trade and sustainable development

 

CHAPTER TWENTY-THREE - TRADE AND LABOUR

In this chapter the EU and Canada commit to respecting the labour standards set by the International Labour Organization), and to ratifying and implementing the international Labour Organization's fundamental conventions. The chapter protects each side's right to regulate on labour matters. It prevents either side from ignoring or lowering labour standards to boost trade. It ensures that non-governmental organisations are involved in implementing the chapter's provisions. It promotes cooperation with the ILO. And it establishes a mechanism for ensuring both sides put the chapter's provisions into practice (enforcement mechanism).

CHAPTER TWENTY-THREE - Trade and labour

 

CHAPTER TWENTY-FOUR - TRADE AND ENVIRONMENT

This chapter commits the EU and Canada to putting into practice international environmental agreements. It:

  • protects each side's right to regulate on environmental matters
  • requires each side to enforce its domestic environmental laws
  • prevents either side from relaxing their laws to boost trade.

The chapter also encourages conservation and sustainable management of forests and fisheries. It also ensures the involvement of non-government groups.

CHAPTER TWENTY-FOUR - Trade and environment

 

CHAPTER TWENTY-FIVE - BILATERAL DIALOGUES AND COOPERATION

In this chapter the EU and Canada agree to work more closely with each other in areas such as science and forestry. There are already several agreements on dialogue and cooperation on trade and economic matters between the EU and Canada. The chapter incorporates these into CETA so that all such activity has the same basis.

CHAPTER TWENTY-FIVE - Bilateral dialogues and cooperation

 

CHAPTER TWENTY-SIX - ADMINISTRATIVE AND INSTITUTIONAL PROVISIONS

This chapter outlines how the EU and Canada will manage and apply CETA. It explains how the EU and Canada should organise the different committees that the agreement sets up, and the legal nature of their decisions.

CHAPTER TWENTY-SIX - Administrative and institutional provisions

 

CHAPTER TWENTY-SEVEN - TRANSPARENCY

This chapter makes sure the EU and Canada publish the laws, regulations, procedures and administrative rulings on matters which CETA covers, and make them available to those who are interested. It also ensures that both the EU and Canada promptly share information and respond to questions on measures affecting the way they implement CETA. The EU and Canada also agree to co-operate in international bodies to promote transparency in international trade and investment.

CHAPTER TWENTY-SEVEN - Transparency

 

CHAPTER TWENTY-EIGHT - EXCEPTIONS

This chapter gives the EU and Canada the right to exclude certain areas, either from specific chapters of CETA, or from the whole agreement. They can do so for a variety of reasons, such as to ensure public safety, prevent tax evasion, or to preserve and promote cultural identity.

CHAPTER TWENTY-EIGHT - Exceptions

 

CHAPTER TWENTY-NINE - DISPUTE SETTLEMENT

This chapter provides a system for resolving any disputes between the EU and Canada about the way in which they apply or interpret CETA. If differences do arise, the two sides must first communicate clearly and promptly with each other to try to resolve them quickly. They must also consult experts on the issue. Only if those efforts are fruitless can they resort to the formal procedure which this chapter sets out.

This chapter also explains the procedures both sides must follow to resolve a formal dispute. And it gives the option of using an independent mediator to oversee the process.

 

CHAPTER THIRTY - FINAL PROVISIONS

This chapter includes rules on:

  • how the agreement can enter into force
  • how to incorporate new EU Member States into the agreement after it is signed
  • how the agreement can be amended or ended in the future.

CHAPTER THIRTY - Final provisions

 

ANNEXES

Annexes to the comprehensive economic and trade agreement (CETA)