Canada and European Union Reach Landmark Trade Agreement

Canadian Prime Minister Stephen Harper announced on Friday, October 18, that Canada and the European Union (EU) will soon be signing a sweeping trade agreement. The agreement, which will greatly enhance trade and investment ties between the two partners, will be the largest that Canada has ever signed.

“This trade agreement is a historic win for Canada,” said Prime Minister Harper. “It represents thousands of new jobs for Canadians, and a half-billion new customers for Canadian businesses.”

The trade agreement will cover a range of bilateral economic issues. These include trade in goods and services, investment, and flexibility in a number of areas such as regulatory cooperation. Canadian businesses will be given preferential access to the EU market. According to the Government of Canada, workers in every industry and geographic region of the country will benefit from this increased access.

The first day the agreement comes into force, approximately 98 percent of European tariffs on Canadian exports will be eliminated, which means that Canadian businesses will instantly save money when exporting to EU member states.

No mention has yet been made as to whether the agreement will include provisions for facilitating cross-border work. The North American Free Trade Agreement (NAFTA), which exists between Canada, the USA, and Mexico, allows certain targeted temporary workers to enter Canada via a streamlined process.