Canada signs enhanced trade agreement with EU

TRENTON, Canada

Canada signed an agreement with the European Union on Thursday to enhance their existing trade pact as Ottawa looks to expand global markets and reduce its reliance on the United States.

European Commissioner for Trade and Economic Security Maroš Šefčovič and Canada’s International Trade Minister Maninder Sidhu signed the deal in Toronto to strengthen the Canada-European Union Comprehensive Economic and Trade Agreement (CETA).

The updated arrangement builds on CETA, which was negotiated from 2009 to 2016 and provisionally took effect in 2017, except for provisions related to investments.

Officials said updates were needed to modernize the agreement and expand economic benefits.

Some EU member states have not yet ratified the pact, but Canada and the EU agreed to implement the deal’s economic benefits, including tariff reductions, without waiting for full ratification, CBC News reported.

The two sides also launched negotiations on a separate digital trade agreement that will eventually be incorporated into the updated CETA framework.

The government of Prime Minister Mark Carney said the revised deal could affect several professions, including architects, and improve access to the EU’s $1.1 trillion construction market.

Canada and the EU also plan to cooperate more closely on pharmaceutical manufacturing in an effort to cut costs by reducing duplicate inspections.

However, it remains unclear when the updated agreement will fully take effect because it still requires ratification by all EU member states.

Those that have not yet ratified the agreement include Belgium, Bulgaria, Cyprus, France, Greece, Hungary, Ireland, Italy, Poland and Slovenia.

Carney is currently touring several countries to pursue new trade agreements, as Canada seeks to diversify its markets. About 77% of Canadian exports go to the United States each year.