1. Copyright, Trademark & Design

CETA aims to create a balance between copyright owners' right to benefit from their work and promotion of advances in technology, as well as possibility of using new and innovative technology by service providers, businesses, students and educators.

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Agreement in principle includes various copyright provisions regarding term of
protection, broadcasting, protection of technological measures, protection of
rights management information, and liability of intermediary service
providers. 

In the
area of trademarks and designs, the following international agreements set
standards that encourage trademark and industrial design procedures:

1. The Singapore Treaty on the Law of Trademark;
2. The Protocol Related to the Madrid Agreement Concerning the International Registration of Marks;
3. The Geneva Act of the Hague Agreement Concerning the International Registration of Industrial Design. 

Though Canada is not currently a contracting party to these agreements (whereas many EU member states are), both the EU and Canada commit to make all reasonable efforts to comply with the standards set in these agreements.  

2. Geographical Indicators (GIs) 

AT
geographical indicator is a sign or name of a product that is based on its
specific geographical origin. 

Canada
currently recognizes a number of EU wines and spirits GIs (such as Cognac and
Bordeaux), but agrees to recognize 179 additional terms regarding food and
beer. 

Canada
however agreed to protect some EU GIs with the caveat that they do not impact
the ability of producers to use terms that are commonly used in Canada: in
English and in French. As a consequence, the following terms continue to be
free of use in Canada. in French and English only - regardless of the origin of
the product: Valencia orange, Black Forest ham, Tiroler bacon, Parmesan,
Bavarian beer, Munich beer. 

The EU
preserved its GI rights on a certain number of cheeses such as Asiago, Feta,
Fontina, Gorgonzola and Munster. However, this will not affect the ability of
current users to continue use of these names. Future users may only use these
names if accompanied by expressions such as “kind”, “type”, “style” and
"imitation". 

Canada
preserves the right to use the customary name of an animal breed or a plant
variety, such as using Kalamata on packaging of this variety of olive. 

Canadians
also maintain the ability to use parts of multi-part terms, for example:

1. Brie de Meaux will be protected, but Brie may be used on its own;
2. Gouda Holland will be protected, but Gouda may be used on its own;
3. Edam Holland will be protected, but Edam may be used on its own;
4. Mortadella Bologna will be protected, but Mortadella or Bologna may be used separately. 

Canada did not agree to protect the French term walnuts de Grenoble and will not protect the GI Budejovicke, thus preventing any conflicts with the Budweiser trademark. 

3. Plants and Plant Protection Products 

CETA will
provide certainty for data protection for plant protection products (ie
pesticides). The Parties have committed to co-operate in order to promote and
reinforce the protection of plant varieties based on the International
Convention for the Protection of New Varieties of Plants. 

CETA will preserve the “farmers' privilege” to save and replant seeds of a protected variety on their own land under the Canadian federal Plant Breeders' Rights' Act. 

4. Enforcement

The Parties agreed to ensure simple, fair, equitable and cost-effective enforcement of intellectual property rights provisions through civil remedies and border enforcement measures that should not interrupt trade at the border.

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CETA's
public procurement liberalization provisions will allow for a great opening of
the Parties procurement markets to foreign competition. 

Exclusions
will however apply for certain sensitive issues will apply. Governments
maintain the ability to set broad exclusions for:

1. National security reasons and measures that are necessary to protect public morals, order and safety; - Reasons pertaining to human, animal or plant life or health;
2. Intellectual property; - Measures regarding goods or services of persons with disabilities, philanthropic institution or prison labor;
3. Issues touching aboriginal business. 

Governments
shall possess the right to give preferences to their domestic companies when
using grants, loans and fiscal incentives or in the case of procurements below
threshold value (see sections 1. and 2. below for threshold ranges). 

They will also maintain flexibility in determining technical considerations - including social and environmental criteria to be part of contract requirements - and in deciding on the form of procurement (open or limited). 

1.The European Union

By
providing Canada preferential access to the EU's $2.7 trillion
government-procurement market, the EU is granting the most favorable and
comprehensive market access it has ever offered to any member of the G-20. 

Canadian
companies will be able to sell to the 28 member states of the EU, the EU-level
institutions (European Commission, European Parliament, and the European
Council), as well as thousands of regional and local government entities within
the EU. 

For EU
businesses, this possibility applies for markets exceeding a certain value
(procurement contracts ranging from 130,000$ to 5 million special drawing
rights). The EU also offers a more comprehensive coverage than Canada for
important sectors such as energy, bodies governed by public law, cultural
industries and public transit. 

It should
be noted that there are specific exclusions from the European Union's
procurement market, namely for:

1. Ports and airports;
2. Broadcasting;
3. The Postal sector;
4. Shipbuilding and maintenance by utilities, bodies governed by public law and local authorities. 

2. Canada

Likewise,
CETA allows EU companies to compete at the federal, provincial and municipal
Canadian public procurement markets, making it the most comprehensive and
favorable market access offered by Canada under any of its Free Trade Agreements. 

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Canadian threshold ranges from 205,000 $ to $7.8 billion, and covers a broad
range of sectors such as energy and mass transit. 

Procurements
in certain areas, such as those touching public health and aboriginal
populations, are however excluded from coverage. There are also exclusions in
sectors such as:

1. Agricultural goods which are part of a food program;
2. Works of art and cultural industries in Quebec and for all municipalities, school boards and academic institutions in all other provinces and territories;
3. Procurement for co-production and broadcasting time (through all of Canada);
4. Research and development;
5. Shipbuilding and repair (in some provinces);
6. Sensitive goods that are procured by security-mandated entities, such as police forces;
7. All major ports and airports; - Certain other regional economic development exclusion.

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Investment protection represents an important chapter in Canada and EU's Agreement. In 2011, Canadian direct investment in the EU totaled $172.5 billion dollars, and EU's foreign direct investment in Canada totaled $160.7 billion.

1. How CETA defines “investment”

CETA defines “investments” very broadly, encompassing “any kind of asset”. Using the
negative list approach, a subject matter must be specifically excluded by the parties to
escape the scope of the agreement.

New sectors and services open to investment include telecommunication, dredging activities
and uranium investment for Canada and, for the EU, information technology, research and
development and mining activities.

However, not all foreign investments shall be liberalized.

The Canadian federal government, for example, shall maintain its ability to review high-value
foreign investments to either ensure they will likely to be of “net benefit” to Canada, or for
national security reasons. Such ministerial decisions are not subject to CETA's dispute
settlement provision.

EU investors are therefore not exempted, in certain case, from the notification and decision-
making procedure of the Canadian government regarding their investments.

Nonetheless, Canada has agreed to raise the review threshold to $1.5 billion (instead of $1 billion in enterprise value). Also, Canada commits to render uranium investment less restrictive (exempted from requirement of first finding a Canadian partner).

2. Investment protection rules

Canadian and EU investors may not be granted a less advantageous treatment than that
granted to domestic investors, or to other foreign investors. This is provided for by by the
national treatment clause and the most favored-nation treatment clause.

Investors and their investments benefit from fair and equitable treatment and be treated in a
non-discriminatory manner. They will be guaranteed, at the very least, a minimal standard
treatment.

The CETA rules also provide for protection against governments arbitrary actions and sets
compensation for expropriation, which includes indirect expropriation. It shall however be

specified that governments may take good faith and non-discriminatory measures to protect public safety, health and the environment.

3. Investment dispute settlement mechanism

Should an investors' rights be violated under CETA, the dispute may be settled in an
arbitration proceeding in the host state.

CETA seeks to promote resolution of investor-state disputes through an efficient and
transparent process. As such, consultations will be enhanced and submissions to the arbitral
panel shall be public.

Also, as a party to the ICSID Convention, Canada will adopt the ICSID arbitral rules, allowing
for a structured legal framework to regulate Investor-State Dispute Settlements (ISDS).
According to these rules a locally established, foreign-owned company may initiate a claim.

The ICSID tribunal may order an award for damages or restitution of property, as well as
costs, though it cannot repeal the host state's measures that have been affecting the foreign
investor's investments.

To avoid abuse of this arbitration process, provisions of the agreement shall guard against
frivolous claims.

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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:

1. Research and development
2. Mining
3. Services related to energy
4. Technical testing and analysis services
5. Environmental services - Computer and information technology
6. Professional services, including
   - Legal;
   - Architectural;
   - Engineering;
   - 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:

1. Commercial dredging;
2. Repositioning of empty containers;
3. Uranium investment (that will become less restrictive; see section on investments);
4. 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.   

LABOR MOBILITY 

CETA's
provisions shall aim to increase labor 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 labor 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: 

1. Reciprocal commitments regarding independent professionals and contract service suppliers on a sector and member-state basis;
2. Setting a minimum stay duration of equal duration for both Parties, the length of which would vary depending on the category of persons (eg intra-corporate transferees, short-term business visitors etc.) shall apply to both Canada and the EU. 

Thesis
temporary entry provisions will cover:

1. Intra-corporate professionals;
2. Investors and business visitors for investment purposes;
3. Contract service suppliers and independent professionals with contract length of 12 months or less;
4. Short term business visitors including after-sales and after-lease services.

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1. Tariff Elimination

With CETA a wide scope of trade-liberalizing measures will facilitate the exchange of goods between Canada and the EU, the most important of which is the immediate elimination of about 99% of industrial tariffs between Canada and the EU upon entry into force. 

Within 7
years of ratification, full elimination will occur. 

This will allow for higher competition in key industrial sectors for both Parties. For example all existing tariffs on Canadian forest, chemical and plastic products will be immediately eliminated as soon as CETA is ratified. The current tariff rate is currently up to 10%.  

2. Rules of Origin 

As for
Agricultural Tariff Eliminations, CETA provides for rules of origin that
determine whether a product can qualify as originating from Canada or the EU in
order to benefit from the Industrial tariff elimination rules. 

However, the Agreement takes into account that some products have a higher proportion of imported inputs and provides for certain derogations regarding such products, for example: Automobiles (see section below)
- Textile and apparel
- The Automobile industry 

Current EU
duties range from 3.5% to 22%, whereas Canadian duties are currently at
6.1%. 

With CETA, specific provisions regarding the origin of products determine which automobiles may benefit from preferential treatment: 
- Canadian automobiles with 50% Canadian content will benefit from duty-free treatment for the first 7 years, after which those with 55% Canadian content will be eligible for the preferential treatment;
100,000 automobiles with Canadian content as low as 20% will benefit from tariff-free quota;
A provision allowing for cumulation with the United-States' products will allow for auto parts originating in the US to count towards the originating status of a vehicle produced in Canada or the EU; 

As for EU automobiles entering Canada, full tariff elimination will be installed over a transition period of 3, 5 and 7 years.  

3. Regulations, Certification and Standards 

Regarding
motor vehicle regulations, when the agreement comes into force, Canada will
adopt 17 standards as equivalent to its own safety norms relating, for example,
to electronic stability control of passenger cars. The Parties commit to
harmonizing further standards in the future. 

Thanks to
CETA's conformity assessment provisions, testing and certification costs as
well as associated marketing delays will be reduced for manufacturers: CETA
will streamline regulations regarding testing, certification and labeling. Tea
Parties will convene of a Protocol whereby a mechanism for recognition of test
results and product certification by authorized bodies in the other party will
be established. The scope of this Protocoled is yet to be determined. 

CETA also installs a mechanism whereby the EU or Canada may request that their respective technical regulations be considered as equivalent.  

4. Customs and trade facilitation 

The agreement in principle provides for customs and trade facilitation measures such as:
- An access to advance rulings on the origin or tariff classification of products;
- Installment of automated border procedures wherever possible;
- Possibility to address complaints about customs rulings and decisions through an impartial and transparent system;
- Installment of a regulatory cooperation mechanism including early access to regulatory development processes in order to obtain compatible measures and reduce trade barriers.

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