Canadian Prime Minister Mark Carney and European Commission President Ursula von der Leyen recently agreed to improve economic ties, deepen trade, and work together on defense and security issues.
Key Points of the Cooperation:
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Canada and the EU have a free trade agreement called CETA (Comprehensive Economic and Trade Agreement), which has been in place since 2017. This agreement has removed 98% of tariffs, making it easier for businesses to trade between the two regions.
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Some tariff lines, like those on grains, seafood, and cars, are still being phased out over time to help reduce business costs and boost trade.
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CETA has increased bilateral trade by 65% since its introduction, benefiting both sides.
Canada’s Goals:
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Prime Minister Carney wants to reduce Canada’s reliance on the US, which buys over 75% of Canada’s exports. He aims to build stronger ties with Europe and Asia.
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Canada is also focused on helping small businesses access the 27 EU member states and is working on securing alliances for critical raw materials like cobalt, lithium, and nickel for energy transition purposes.
Future Plans:
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Both leaders are exploring ways to improve defense and economic security cooperation, alongside their trade relationship.
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Canada continues to pursue trade agreements in the Indo-Pacific region, signing deals with countries like Ecuador and Indonesia.
In summary, the Canada-EU partnership is set to grow, bringing benefits like increased trade, job creation, and sustainable development, while also focusing on environmental protection and labor rights.
Disclaimer: This article is for information only and not financial advice.
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