Canada-EU Trade Deal: Round-Up of the “Agreement in Principle” Development, What that Might Mean for Canada, and What Comes Next

After four years, Canada and the European Union (EU) made real progress on finalizing a free trade deal by announcing an agreement in principle.

But, don’t worry, we got at least another year before ratification–and that’s assuming everything goes smoothly.

Get some of the deal’s sector-specific potential impacts of the deal at CBCNews (focusing on the positives for autos) and The Star (highlighting concerns related to agriculture and prescription drugs).

And iPolitics offers an excellent crib sheet on the deal’s contours–or, as it amply puts it, “Here’s who got what.

Want to read the deal, or rather the “agreement in principle”?  Well, you can’t.  But!  You can read a 30+ page overview here.

What’s next?  “18 to 24 months before final…approval” for both Canada and the EU.  (Here’s more on the EU’s trade deal approval process and Canada’s process.)

Is it a done deal?  Not necessarily…since, as CTVNews points, out all 28 EU member states and all Canadian provinces must approve the deal before it’s ratified. 

From The Globe and Mail nice and concise overview piece:

The agreement will have far reaching impacts, touching just about every sector of the Canadian economy and millions of workers and consumers. The final result could see Canadians paying less for thousands of products made in Europe, such as cars which are currently subject to a 6 per cent tariff. European companies will also be able to bid on large provincial and municipal government contracts. And Canadian companies and farmers will gain open access to the EU for hundreds of products, some of which now face tariffs as high as 12 per cent.

The deal has taken four years to negotiate and will still take up to two more years to finalize. And it could yet run into hurdles as it must be approved by the EU and all 28-member countries.

Canada has been eager to reach the trade deal, believing access to the EU’s $17-trillion economy will boost gross domestic product by $12-billion and create 80,000 jobs.

The EU is Canada’s second largest trading partner, behind the United States.

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