CETA will make a significant contribution to opening up the services market. Better access
the financial services market is predictable. In general, CETA aims to create a
fair trade environment, profitable to consumers, with a system of
regulations that are transparent to investors and businesses.

Certain sectors, such as health, public education, culture and other services
However, social workers will be excluded from the scope of the Agreement. Other exclusions
will be provided to allow preferential treatment of populations
indigenous and minority.

Also, the prerogatives of governments to regulate and exercise their sovereign power over sensitive sectors such as the development of natural resources will be recognized.

1. Opening of the European Union services market

In 2012, the export of Canadian services to the EU was worth $14.5 billion. The sectors
following, particularly interesting for Canadian export, will become more
attractive with CETA:

1. Research and development
2. Minier
3. Energy services
4. Technical testing and analysis services
5. Computer systems and information technology
6. Environmental services
7. Professional services, including:
   - Legal;
   - Architecture;
   - Engineer;
   - Urban planning.

2. The opening of the Canadian service market

In 2012, EU services exported to Canada were worth $16.8 billion. CETA plans
access to new markets in several sectors, such as:

1. Commercial dredging;
2. Repositioning of empty containers;
3. Investment in uranium (which will become less restrictive; see section on investments);
4. Telecommunications (competitors should have better access to networks and services, and regulations should become more transparent and impartial).

Canadian provinces and territories will, however, have the discretion to set the measures
liberalization of certain service sectors such as architecture, engineering, and
foreign legal consultation, urban planning, commercial and
tourism, and therefore will not be bound by CETA terms. However, for the sake of
transparency, non-conforming measures will be listed.

3. Mobility of workers

The provisions of the EACG aim to increase the mobility of workers.

For example, Canada and the EU have agreed to mutually recognize a number
considerable professional qualifications. Also, the Agreement simplifies travel
temporary employment of business personnel between Canada and the EU through the implementation of
more flexible mobility rules. This will help businesses to establish branches and
branches in the territory of each Party, and to maintain services there.

Barriers to the international services market will be reduced (such as restrictions
related to investment, citizenship and residence).

CETA sets several provisions for temporary stay, such as:

1. Reciprocal commitments, by sector and by member state, relating to independent professionals and suppliers of subcontracting services;
2. Fixing of a minimum legal equivalent length of stay for the two Parties, duration which will vary according to the category of person (ex: intra-company transfers, short visits of business people etc.) These temporary stay arrangements are apply:
   - Intra-company professionals;
   - Visits to business people and investors for investment purposes;
   - Subcontracting service providers and independent professionals on contract for a maximum duration of 12 months;
   - Short-term business visitors, including after-sales and after-rental services.

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1. Elimination of agricultural tariffs
2. Elimination of industrial tariffs
3. Services and labor mobility
4. Investment protection
5. Public procurement
CETA - 3. Services market and worker mobility (Fr)
CETA - 7. Sustainable development, environment and work
CETA - 8. Dispute resolution and monitoring

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1. Tariff elimination

With CETA a host of free trade measures will facilitate trade in
goods between Canada and the EU, the most important being the immediate elimination of approximately 99%
industrial tariffs upon entry into force of the Agreement.

Within 7 years of ratification, total elimination will be achieved.

This will allow greater competitiveness for both Parties in important sectors. For example, all tariffs on Canadian forest, chemical and plastic products will be immediately eliminated as soon as CETA is ratified. Tariff rates are currently around 10%.

2. Rules of origin

As with tariff elimination on agricultural products, CETA provides rules
of origin in order to determine under what conditions a product can be considered as
from Canada or the EU and benefit from the provisions eliminating industrial tariffs.

However, the Agreement takes into account that certain products include a higher rate of
imported parts and thus provides for derogations from them; for example :

1. Automobiles (see section below)
2. Textiles and Appliances The Automotive Industry Current EU tax rates range from 3.5% to 22%, while those in Canada are 6.1%.

With CETA, provisions regarding the origin of products determine which automobiles are eligible for preferential treatment:

1. Canadian automobiles made from 50% Canadian materials will benefit from duty-free treatment for the first 7 years, after which those made from 55% Canadian materials will be eligible for this preferential treatment;
2. 100,000 cars made at 20% only of Canadian materials will benefit from tariff elimination for a given quota (1);
3. A provision allowing cumulation with products from the United States will allow auto parts from there to count towards the original status of a vehicle produced in Canada or in the EU. For EU automobiles entering Canadian territory, an absolute tariff elimination will be implemented over transitional periods of 3, 5 and 7 years.

3. Regulations, Certification and Standards

Regarding the regulation of motor vehicles, when the Agreement comes into force, Canada will adopt 17 standards (2) equivalent to its own standards relating to, for example, electronic stability control of automobile passengers.

The Parties undertake to harmonize further standards in the future. Thanks to the CETA conformity assessment system, testing and certification costs, as well as marketing delays, will be reduced for manufacturers.

CETA will streamline regulations for testing, certification and labeling.

The Parties will agree on a protocol providing for a mechanism for the recognition of test results and the certification of products by the competent authorities of the other party.

CETA also establishes a mechanism by which the EU or Canada can request that their respective technical regulations be considered equivalent.

4. Customs and trade facilitation

The Agreement provides for customs and trade facilitation measures, such as:

1. Access to advance rulings on the origin or tariff classification of products;
2. When possible, the implementation of automated border procedures;
3. The possibility of lodging complaints against customs decisions via an impartial and transparent system;
4. The establishment of a regulatory cooperation mechanism, including early access to the development of regulations, in order to obtain compatible measures and reduce barriers to trade.

***

(1) In 2012 Canada exported 10,023 cars to the EU with an annual average of 8,180 cars between 2007-2012

(2) Of the United Nations Economic Commission for Europe (UNECE)

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CETA - 2. Industrial tariff elimination (Fr)
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Thanks to CETA provisions the Parties will benefit from better access to the various markets for agricultural and food products, with the exception of some politically sensitive products, such as poultry and eggs, which are completely excluded from the scope of application of CETA.

1. The commitments of the European Union

When CETA comes into force, the EU will eliminate 94% from its agricultural customs tariffs, with
a transitional period of 7 years for complete elimination.

Fresh, frozen and prepared fruits and vegetables

This immediate elimination will apply to a variety of Canadian products such as fresh or frozen cherries (whose current duties are 12%), as well as sweet, dried cranberries (whose current duties are 17.6%) .

Sweet corn

Sweet corn will benefit from an immediate tariff exemption on a quota of 8,000 tonnes.

Dairy products

Access to the EU dairy market will be free of tariffs and quotas.

Seeds

Tariffs on Canadian seeds (such as barley, oats and wheat) will be phased out over a transitional period of 7 years.

Beef and pork

In the case of certain meats, free tariff quotas will be applied: the EU undertakes to provide an exemption from the tariff quota for 50,000 tonnes of beef and veal, as well as an exemption from the tariff quota for 81,000 tonnes of pork .

Fish and seafood

On fish and seafood, around 96% of the EU tariffs will be eliminated immediately, and complete elimination will be achieved 7 years later. Immediate elimination will apply to Canadian products such as:

1. Prawns cooked and peeled in packages (whose current prices start at 20%)
2. Frozen mackerel (the current fee of which is 20%)
3. Fresh, frozen and frozen mussels (with current rates of 20%)

Major Canadian exports to the EU, such as shrimp and
cod, will benefit from a transitional tariff quota regime (23,000 tonnes and 1,000
ton respectively).

Rules of origin

Canada and the EU being the only parties to CETA, the trade benefits it provides
only apply to products from Canada or the EU. The Agreement provides for
rules of origin, i.e. rules that will determine under what conditions a
product can be considered to have originated in Canada or the EU. The idea is
to prevent third countries to the agreement from indirectly benefiting from its mechanisms promoting
the free market.

Although the majority of Canadian agricultural products meet the origin criteria
provided for this type of product (thus justifying the elimination of customs duties), CETA
takes note of the existence on the market of certain products with a high rate of shares
imported. To address this situation, the Agreement provides for more flexible rules of origin
for a number of these products, or in other words exceptions to the rules
of origin.

For example :

1. Fish / seafood: more flexible rules of origin apply to certain Canadian products such as: o Prepared and preserved salmon (for export up to 3,000 tonnes);
   - Cooked and frozen lobster (for export up to 2,000 tonnes);
   - Sardines prepared and preserved (for export up to 200 tonnes);
   - Industrial shrimp (for export up to 5,000 tonnes).
2. Upon entry into force of the Agreement, an initial volume of 30,000 tonnes of high sugar products (such as flavored drink mixes, iced tea mixes, hot chocolate and instant coffee) will benefit from the application flexible rules of origin; this volume will subsequently increase in order to allow exports of up to 51,840 tonnes of these products over a period of 15 years, following a conditional growth mechanism.
3. The exemption will apply to chocolate and confectionery (such as chewing gum, sweet candies and chocolate preparations) up to 10,000 tonnes.
4. Cat and dog food, up to 60,000 tonnes.

2. Canada's commitments

98.4% agricultural tariff lines will be set to 0% when CETA comes into force. 98.8% of the Canadian tariffs will be exempt from customs seven years after coming into force.

Canada has also agreed to increase its import quota for cheese from the EU duty free by 17,000 tonnes.

For Canadian fish and seafood products, 100% tariff lines will be free of customs duties immediately upon entry into force of the Agreement. Canada also commits to granting most-favored-nation treatment to ships from EU member states, that is, they will be given the same better benefits that Canada could grant to ships other states.

3. Wines and spirits

CETA will incorporate the terms of a pre-existing sector agreement, those of the Agreement
between Canada and the EU on wines and spirits 1.

The following advantages for the development of the wine and beverage trade
spirits are provided for in this Agreement:

1. Mutual recognition of various oenological practices, processes and product specifications (listed in the Annexes to the Canada-EU Agreement on Wine and Spirits);
2. The establishment of a list of conditions relating to consumer protection and quality standards for new oenological practices or their modifications;
3. The establishment of rules for wine certification according to which no Party may impose a more restrictive system than that applied on the date of entry into force of the Agreement. CETA also provides for the protection of certain domestic practices such as the bottling requirements of Quebec. Finally, the Agreement reduces the "cost of services" that the Canadian provinces levy on European wines.

4. Biotechnology, Sanitary and phytosanitary measures

Biotechnology is a technological application making use of living systems and organisms to create useful products. Field genetics and food geniuses are examples of this type of application. Aware of their consequences on our earth, CETA encourages cooperation between regulatory agents on this sensitive subject. Finally, CETA will build on the existing Canada-EU Veterinary Agreement as the basis for cooperation in the areas of plant, animal health and food safety.

5. Customs and trade facilities & agricultural subsidies

Customs and trade facilities

As with industrial products, the Agreement provides for customs and trade facilitation measures, such as:

1. Access to advance rulings on the origin or tariff classification of products;
2. When possible, the implementation of automated border procedures;
3. An impartial and transparent system for handling complaints against customs decisions.

Agricultural subsidies

In order to dispose of surplus domestic production of agricultural products on the world market, it is often the case that governments or their agencies stimulate the export of these products by granting subsidies to producers or agricultural industries.

These subsidies can take various forms, such as financing linked to export performance or financing aimed at reducing the costs of marketing, processing and international transport / shipment of agricultural products.

Because subsidies have the effect of increasing production and lowering prices, they can distort competitiveness on the world market if used excessively.

Countries with less or no subsidy (for financial or regulatory reasons) are generally less competitive in a given market.

CETA Parties are responding to this problem by committing to mutually prohibit export subsidies related to tariff elimination.

In other words, the tariff elimination provisions of the Agreement will only apply to unsubsidized products.

The Agreement will also set up a mechanism allowing the consultation of all types of government aid granted to agricultural products.

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All articles on CETA

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1. Elimination of agricultural tariffs
2. Elimination of industrial tariffs
3. Services and labor mobility
4. Investment protection
5. Public procurement
CETA - 6. Intellectual property
CETA - 7. Sustainable development, environment and work
CETA - 8. Dispute resolution and monitoring

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1. Dispute Settlements

CETA sets forth organized and simplified dispute settlement mechanisms such as voluntary
mediation, investor-state arbitration and accelerated arbitration in urgent matters.

The agreement is meant to promote transparency, efficiency and promptness of resolution procedures through innovative processes, such as customized dispute settlement procedures for certain sectors (such as labor, environment, financial services and taxation).

2. Supervision

Various committees and sub-committees are installed to oversee and facilitate the
implementation and application of the Agreement, as well as to encourage dialogue between
the Parties on all subject matters of CETA.

Transparency provisions are also drafted to ensure that each Party has access to
information (such as laws and regulations) that may affect the operation of the Agreement.

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CETA incites companies to act responsibly and respect certain social, economic and
environmental goals such as the protection of workers and the development of natural
resources in an environmentally sustainable manner. Such protective policies may not be
departed from only to attract investments.

Canada and the EU will therefore both review and monitor the achievement of these goals,
as well as commit to sanction or remedy the violations of related implemented laws.

The objective is to develop trade liberalizing activities in a responsible manner and enhance coordination between trade and labor / environment policies.

1. Trade and Sustainable Development

The Parties commit to:

• Encourages businesses to adopt practices that promote economic, social and environmental objectives;
• Setting environmental-performance standards and goals and recognizing benefits of eco-labeling;
• Assessing, monitoring and reviewing the impacts that implementation of the Agreement may have on sustainable development. CETA also provides provisions on sustainable trade in forest and fisheries product.

2. Trade and Environment

The Parties commit to maintain high levels of environmental protection and effectively enforce domestic environmental laws. CETA provides a broad definition of environmental law, encompassing all laws that have as their purpose the protection of the environment.

3. Trade and Labor

Canada and the EU commit to ensuring that their national labor laws and policies respect the International Labor Organization's 1998 Declaration on Fundamental Principles and Rights at Work. The Agreement also includes a non-derogation clause, meaning that the Parties may neither weaken their labor laws, nor lower their labor standards, in order to facilitate trade and investments.

For all claims related any one of these topics, a dispute resolution mechanism shall be available.

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