Wth growing public and media interest in CETA, already in the past year Swedish export to Canada increased by 27% compared to 2015. Sweden also has benefited from a 55% increase in FDI from Canada in the last year as well as an 18% increase in imports of goods and services from Canada. Business Sweden is confident that CETA will help to push this trade increase to even higher levels.
Perhaps the most tangible benefit for Swedish companies currently trading with Canada will be an immediate reduction of import tariffs to 0%, if the products traded will meet the manufacturing stipulations of being made within EU or Canada. For example, Swedish companies exporting shoes or clothing to Canada may see a significant cost savings considering these tariffs range between 17-20%. Business Sweden encourages Swedish companies to verify the Rules of Origin for their manufactured goods with the suppliers to ensure the products qualify for this reduction in tariffs within CETA.
Additional benefits within CETA include facilitated transfer of employees between the two regions, ease of obtaining product certification for the two markets, and for the first time, an opening of Canadian public procurement on all three levels of government (federal, provincial and municipal) to EU companies- something that is not even included in NAFTA.
Business Sweden believes the immediate impact of CETA will be most strongly felt by Swedish SME’s who will see great benefits relating to cost savings. The long term ambition of CETA is to streamline certification and regulation processes which will positively impact all companies.
Business Sweden has detailed information in Swedish about CETA on our website: http://www.business-sweden.se/Export/marknader/amerika/Kanada/frihandelsavtal/
For further information, feel free to get in touch with our CETA expert Agata.Leszkiewicz@business-sweden.se.