CETA – 3. Trade in services and labour mobility (En)
CETA will contribute in considerable liberalization of trade in services. Better access to financial service markets is foreseen. In general, CETA will aim to create a fair trade environment that benefits consumers, with regulatory regimes that are transparent for investors and businesses.
However, certain sectors will be excluded such as health care, public education, culture and other social services. Other exclusions will be put in place to allow for preferential treatment of Aboriginal populations and minority groups.
Also, governments will be recognized their right to regulate and exercise sovereign control over sensitive sectors, such as the development of natural resources. Monopolies and state enterprises with public-service obligations will also continue to have flexibility to serve public interests.
1. Opening of the European Union services market
In 2012, Canada’s services exports to the EU was worth $14.5 billion. The following sectors that are of export interest to Canadians will become more attractive with the CETA provisions:
- Research and development
- Services related to energy
- Technical testing and analysis services
- Environmental services – Computer and information technology
- Professional services, including
– Urban planning.
2. Opening of Canada’s services market
In 2012, the EU’s services exported to Canada valued at $16.8 billion. CETA provides for new market access into various sectors, such as:
- Commercial dredging;
- Repositioning of empty containers;
- Uranium investment (that will become less restrictive; see section on investments);
- Telecommunications (competitors are meant to have better access to networks and services, and regulations are required to be more impartial and transparent).
Canadian provinces and territories will however have discretion in establishing the liberalization measures in certain service sectors such as architecture, engineering, foreign legal consulting, urban planning, tourism and business services, and will therefore not be bound by the term of CETA; However, out for concern for transparency, such non-conforming measures will be listed.
CETA’s provisions shall aim to increase labour mobility.
For instance, Canada and the EU have agreed on mutual recognition of substantive professional qualifications. Also, the agreement shall facilitate temporary movement of company personnel between Canada and EU by implementing more lenient labour mobility rules. This will help companies establish branches and insure maintenance of services in the Parties’ territories.
Barriers to international service trade will be reduced (such as investment & ownership restrictions, citizenship and residency requirements).
CETA will also set various provisions pertaining to temporary entry, such as:
- Reciprocal commitments regarding independent professionals and contract service suppliers on a sector and member-state basis;
- Setting a minimum stay duration of equal duration for both Parties, the length of which would vary depending on the category of persons (e.g. intra-corporate transferees, short-term business visitors etc.) shall apply to both Canada and the EU.
These temporary entry provisions will cover:
- Intra-corporate professionals;
- Investors and business visitors for investment purposes;
- Contract service suppliers and independent professionals with contract length of 12 months or less;
- Short term business visitors including after-sales and after-lease services.
© WEISSBERG LAW FIRM |WEISSBERG AVOCATS 2015