CETA Webinar: Your EU CETA questions answered, part 2

Campbell took part in the well-attended webinar held by EDC in late August, just weeks before CETA came into force on Sept. 21. When the hour was up, you still had questions, so we followed up with her and asked her to answer the balance of them. Find her answers to CETA questions below.

Ailish talked about having a list of key people/connections in other countries. Who should I be in contact with to have a list of medical distributors in the United States?

For a list of medical distributors in the U.S., please contact one of our trade commissioners at a Canadian diplomatic office overseas. To find the right one, go to: www.tradecommissioner.gc.ca. Under the heading “Our offices,” click on the link for trade commissioners, and enter United States and the sector you want information on. You will be provided with the contact information for one or more of our officers in the U.S., which will assist you with your inquiry.

If I may, can I suggest that you also look at the EU for this market? With CETA coming into effect on Sept. 21, I thought you might find the following useful: The EU is the world’s second-largest importer of medical devices, with imports totaling $60 billion (or 23 per cent of the global import market for medical devices). The EU is Canada’s second-largest export market for medical devices, with opportunities for further growth. Canadian exports of medical devices to the EU reached $610 million in 2016.

With CETA, for Canadian medical device exporters will see all EU tariffs on these products removed and Canadian service providers in the medical devices sector will be on equal footing with their EU competitors and will receive better treatment than most of their non-EU competitors. Canadian medical device companies will also benefit from improved labour-mobility provisions and expanded access to EU government procurement opportunities.

Can Dr. Campbell please comment on how CETA will create better market access in Europe for Canadian aerospace companies?

The EU is the world’s largest importer of aerospace products, with $109 billion in 2016, which represents 32 per cent of the world’s aerospace imports. Real opportunities are being realized: Canadian aerospace supply-chain exports to Europe have increased by more than 70 per cent since 2003. The EU aerospace industry is the second-largest in the world, generating a turnover of close to 140 billion Euros in 2013.

For Canadian aerospace product exporters, CETA will eliminate tariffs as of Sept. 21 and these same exporters will be able to benefit from provisions in CETA related to temporary entry, government procurement, regulatory co-operation and conformity assessment.

Does the Trade Commissioner Service (TCS) offer services for food manufacturers considering going into the EU? I had been told that they do not offer services for food products. If you don’t, when will you and who do you suggest we contact?

The TCS does have trade commissioners who deal with agriculture and processed food products. To find the right one to help you, go to: www.tradecommissioner.gc.ca. Under the heading “Our offices,” click on the link for trade commissioners, and enter the country you are targeting and the sector you want information on. You will be provided with the contact information for one or more of our officers in the EU who will assist you with your inquiry.

Also to note, Agriculture and Agri-Food Canada provides information and services for Canadian exporters interested in food trade with the EU. Visit the Doing Business in Europe portal for agri-food specific reports, fact sheets, videos and more to help you take advantage of CETA and other EU opportunities.

What are the pre-conditions for using Brand Canada on an export product?

The Canada Brand is designed to give the Canadian food and agriculture industry a competitive advantage, through a common strategy and set of tools. The objective is to raise the profile of and help differentiate your Canadian food products from the competition. The strategy and its elements are free to use and were developed in collaboration with industry and the provincial governments.

More than 700 Canadian agri-food businesses and associations across all sectors have signed up to use the Canada Brand to enhance their local and international promotions. The Canada Brand is open to Canadian entities that have a role in producing, promoting or supporting Canadian food and agricultural products. You are invited to join the Canada Brand and use our tools to complement and strengthen your marketing activities.

The basic eligibility requirements are that the products be grown, raised or harvested, or processed in Canada and produced in accordance with all relevant Canadian regulations related to exports. See http://www.marquecanadabrand.agr.gc.ca for more information.

Can the TCS promote and find importers in the EU?

The TCS can help you find importers and connect you with partners abroad. The TCS also provides Canadian companies with practical advice on international markets and on-the-ground intelligence to help them make better, more timely and cost-effective decisions to achieve their goals abroad. Visit www.tradecommissioner.gc.ca to find the right one to help you. Under the heading “Our offices,” click on the link for trade commissioners, and enter the country you are targeting and the sector you want information on. You will be provided with the contact information for one or more of our officers in the EU who will assist you with your inquiry. You can also select the nearest of our regional offices in Canada if you’re starting on the EU market.

You can also consult our Step-by-Step Guide to Exporting to help you get your business export-ready and well positioned for commercial success abroad, whether you are a novice, intermediate or advanced exporter.

I want to expand to become a national company. Can the BDC help with the funds to make that transformation?

Business Development Bank of Canada has an assortment of financing solutions and other services that might be useful to you and your business. Call 1-877-BDC-BANX or BDC.ca for more information.

Does CETA benefit both EU and Canada equally?

CETA will increase jobs, strengthen economic relations and promote new economic opportunities for Canadian and European businesses. On Sept. 21, 2017, duties will be eliminated on 98 per cent of tariff lines in both directions, with another 1 per cent eliminated after a phase-in period of seven years.

When will CETA finally be implemented?

CETA will provisionally enter into force on Sept. 21, 2017. That means that while we are waiting for full ratification of EU member countries, all economically significant parts of CETA (for example, tariffs quotas, services commitments, temporary entry commitments and government procurement obligations) are provisionally applied, so take advantage and start trading. You don’t have to wait for full ratification to enter this exciting market.

What about the cheese industry? What about the regulations, obstacles? I have a small cheese company in Alberta. We would like to be in Europe.

Under CETA, Canada has gained duty-free, quota-free access to the EU market for dairy and dairy-containing products and will be able to export cheese and other dairy products to the EU tariff-free as of Sept. 21, 2017. Canada’s world-class dairy products will have new export opportunities in the EU market and we encourage cheese-makers to take advantage of this new access.

However, only firms that have EU-approved dairy plants may export to the EU. The Government of Canada is ready to assist Canadian exporters. Agriculture and Agri-Food Canada’s (AAFC) network of trade commissioners operate in 16 markets and complement (and operate alongside) the broader Canadian Trade Commissioner Service (TCS). The Europe-based TCS has recently been very focused on CETA implementation and preparation. The AAFC web site also offers a wealth of information for potential exporters. In particular, the Doing Business in Europe site provides information related to CETA, market intelligence, trade data and analysis and details regarding regulatory requirements.

In addition, the Market Access Single Window email service (mas-sam@agr.gc.ca) is available to provide information and respond to queries related to market access and market development. The single window service standard is to provide a fully consulted reply within five business days.

What about importing from Europe?

You may wish to contact the Canada Border Services Agency for more details on requirements and resources when importing from the EU. You may also want to contact one of the EU diplomatic offices in Canada or the EU commercial office. They will assist you with that inquiry.

Are Canadian firms eligible for EU policy and programs, such as Horizon 2020, in the same way that EU firms are eligible?

Horizon 2020 is the biggest EU Research and Innovation program with nearly 80 billion euros of funding available over seven years (2014 to 2020), in addition to the private investment that this money will attract.

The final Horizon 2020 Work Program will be published in fall 2017 and calls for proposal will open in 2018-2020. Canadian companies and researchers are encouraged to review the 2018-2020 Work Program when it is released, particularly call topics that target international co-operation. Horizon 2020 projects are done by consortia with EU partners. Resources for Canadian and European research and innovation collaboration via Horizon 2020 (ERA-Can+) can be found here.

For assistance in finding prospective European partners for Horizon 2020 projects, please contact the office of the TCS in your target European market. The Canadian mission to the EU, located in Brussels, can also assist in answering questions on how Horizon 2020 works for Canadian participants.

Where can I go to make sure that our products comply in the EU market?

You can consult our Guide on Exporting to the EU for Canadian business available on our CETA web site. The guide includes chapters on product compliance and certification for the EU market, and links to relevant EU legislations which could apply.

In order to benefit from CETA in terms of tariffs, product needs to comply with the applicable rule of origin in order to benefit from CETA’s preferential tariff treatment. Rules of origin define whether a product has been produced or ‘originates’ in the territory of one or both of the parties to a free trade agreement (Canada or the EU in the case of CETA). In order for a product to benefit from CETA preferential tariff treatment it must satisfy the rules of origin set out in the agreement. Products that do so are considered to have undergone sufficient production in the CETA territory, are considered to be “originating” under the terms of the agreement and are therefore eligible for preferential tariff treatment under CETA.

In CETA, the general rules of origin for all products are set out in the Protocol on Rules of Origin and Origin Procedures and the product-specific rules of origin are contained in Annex 5 of this Protocol (Annex 5: Product-Specific Rules of Origin).

Products that are produced in Canada or the EU exclusively from Canadian or EU inputs or ingredients (e.g. fruits or cereals grown and harvested in the FTA territory) are considered wholly obtained under the rules of origin and these products qualify for preferential tariff treatment. For products that qualify as wholly obtained, there is no need to consider the product-specific rules of origin.

Exporters should consult the CETA product-specific rules of origin if their products are produced using any non-originating inputs or ingredients (i.e. materials imported from any country other than Canada or an EU Member State).

Canadian exporters will be able to seek an EU Binding Origin Information (BOI) advance ruling with regards to the CETA rules of origin. The customs authorities of the EU Member States and Canada have agreed to the issuance of advance rulings on whether a product qualifies as originating under the protocol. Advance origin rulings are issued before importation of a product. BOI advance rulings are decisions made by EU competent authorities, which are binding on the customs authorities in all EU Member States. They are applicable to products imported or exported after their issue, provided the products and the circumstances determining their origin are identical in every respect to what is described in the BOI advance ruling.

A Canadian exporter that wishes to submit a request for an advance BOI ruling to the customs authority of an EU Member State must have a representative in that Member State present the application on the exporter’s behalf.

Can we export products to Europe and sell them ourselves or do we need a partner to do it? This would be for food products.

You do not require a partner to sell your export products to Europe. However, in some cases, it may make good sense to seek out a partner. You could contact the TCS to ask the advice of one of our professionals on the ground in Europe. We have 26 points of service on the continent. You’ll find them here.

Is there a course or certification for those who develop a strategy for export-oriented companies?

Our trade commissioners will help you with customized support to foster the international expansion of your firm. You can also check the Forum on International Trade Training (FITT), which offers training and professional certifications to international trade professionals and businesses.

Under CETA, will Canadian firms and citizens have access to EU institutions’ procurement for consulting services — from the European Investment Bank, for example, which used to limit bidders to European nationals?

CETA applies to high-value government procurement. Under CETA, Canada will gain new access at the sub-central level (regions and municipalities) to procurement by local contracting authorities, bodies governed by public law (e.g. hospitals, schools, academic institutions), European public utilities in the areas of gas, electricity, heat and water distribution, as well as entities responsible for urban transit and railways. This includes procurement above specified value thresholds of professional services such as architecture and engineering, as well as all construction services.

You may want to consult the Guide on EU public procurements to help you navigate through the different steps involved. You may also wish to visit the Tenders Electronic Daily at www.ted.europa.eu, a single point of access for EU procurement opportunities.

Where can I find out about trade missions to the EU?

You can check our web site for upcoming trade events in Europe, where Canadian business delegates are sought for participation in Canada pavilions at signature trade events such as Farnborough, Gamescon, the Paris Airshow, as well as Minister-led trade missions to the EU, such as the one to Italy last May.

Where can exporters get CE marking certifications within Canada?

The CE mark is mandatory for certain product groups, such as electronics, medical devices and construction products. The European Commission web site currently lists 25 categories of products requiring the CE mark. A product with the CE mark can be sold anywhere in the European Economic Area, a market of some 500 million consumers made up of the 28 EU countries, as well as non-EU members such as Iceland, Norway, Liechtenstein, Switzerland and Turkey. The Guide to Exporting to the EU has valuable information on CE Marking, and the TCS produced a six-step guide to CE marking available here.

Do we foresee the use of technology such as BlockChain and Smart Contracts accelerating/automating the procurement process and application of CETA rules (from a legal perspective?), making CETA more accessible to small business?

Suppliers will be able to access tender notices for all CETA-covered procurements using the Tenders Electronic Daily (TED, www.ted.europa.eu), the online version of the “Supplement to the Official Journal” of the EU, which is dedicated to EU public procurement. CETA will also introduce shorter bid times for procurement that uses electronic tendering. Under CETA, Canada will also develop a single point of access for government procurement tenders, which will be useful for domestic suppliers looking for opportunities across Canada.