A study published today indicates that the Comprehensive Economic and Trade Agreement (CETA) between the European Union and Canada has significantly enhanced trade exports and diversified supply chains across all EU Member States. Conducted by independent experts as part of the Commission’s commitment to evidence-based policymaking, the study provides compelling evidence that open and cooperative trade is an effective approach to achieving its goals.
Following the initiation of CETA’s provisional application in 2017, bilateral trade in goods and services between the EU and Canada increased by 71%, rising from €72.2 billion in 2016 to €123 billion in 2023. Specifically, EU goods exports to Canada grew by 64%, while EU services exports increased by 81%. Additionally, the EU’s gross domestic product (GDP) has increased by €3.2 billion annually, while Canada’s GDP has risen by €1.3 billion. Small and medium-sized enterprises (SMEs) have benefited particularly, with a growth rate of 20.3% in EU SMEs exporting to Canada, compared to 13.8% for larger firms.
“CETA’s success underscores a fundamental truth: open, rules-based, predictable, and cooperative trade is a winning formula for economic growth, job creation, and social progress. The agreement has not only boosted our economies, but also promoted cooperation on critical issues such as raw materials and environmental goods. CETA is a testament to the strength of our trade relationships and a reminder that cooperation, not protectionism, is the key to building a more prosperous and sustainable future,” Maroš Šefčovič, Commissioner for Trade and Economic Security; Interinstitutional Relations and Transparency, said.
The study also highlights improved cooperation on critical raw materials, enhancing supply security, and notes an 8.4% increase in the value of Canadian government contracts available to EU companies due to CETA. Socially, CETA has led to a 0.02% rise in real wages in the EU and a 0.1% rise in Canada, alongside a 12% increase in trade of environmental goods and a 46% increase in services.
However, there are opportunities for further strengthening the trade relationship. The ongoing ratification of CETA in the EU means that investment protection provisions are still lacking, which hinders investments in sectors such as raw material extraction. Additionally, the study recommends enhancing e-commerce provisions within the Agreement to better align with the evolving digital economy.
The Commission will analyse the findings in detail and present its conclusions in a Staff Working Document, outlining strategic next steps to optimise the EU’s trading relationship with Canada.
