Comparison of Canada and Europe

16th February 2017

Group Members:

  1. Dharti Gandhi
  2. Sanam
  3. Akbar
  4. Ahamed Jifin
  5. Shahsad

Brief of Canada and European Country


Canada is the world’s second-largest country in terms of Trade. Economic and political relation between Canada and Europe started from 1950s. Europe and Canada have similar culture and comparable forms of government. Canada and Europe speaks similar languages (French and English) this is official and popular languages.

Canada’s relationship with Europe is an outcome of the historic link by Colonialism and bulk European immigrant to Canada. The history of Canada’s relations with Europe is best accepted in series of economic contracts. In 1976 the European Economic Community (EEC) and Canada authorized a basic agreement on Economic Co-operation.

In June 2007, the government of Canada have been forcing the European country to discuss “Free Trade Agreement” between this two countries. This idea was supported by more than 100 Canadian and European chief executive.

In June 2009, European Trade commissioner and Canadian minister of international trade, announced to initiate the discussions for comprehensive economic and trade agreement.

Business environment between Canada and Europe

The Comprehensive Economic Trade Agreement (CETA) is a tax-free trade agreement between Canada and European Union. This agreement came into action in July 2016. CETA will help Canada to get global exposure in trade. The contract deducts the tariff barrier between Canada and European Union. This agreement is a liberal trade contract which covers virtually all aspect and sectors of Canada -EU trade in order to eradicate or avoid trade walls.

The national parliaments of the EU Participant States would then also need to approve CETA for the areas which fall below their obligation to take effect.

  • CETA is an innovative trade agreement between the EU and Canada.
  • It’ll make it easier to export goods and services, benefitting people and businesses in both the EU and Canada.
  • The Canada and European Union accepted and signed CETA on 30 October 2016.
  • The European Parliament and European Union national parliaments must accept CETA before it can take complete effect.

Trade law between Canada and Europe

The Comprehensive Economic and Trade Agreement (CETA) is a free trade between Canada and the European Union. If the act is passed, this could enhance the overall trade of Canada and buildup a solid relation between European countries.

Finally, the discussions were concluded in August 2014. Altogether 28 European Union member states approved the ultimate text CETA for signature, with Belgium being the final nation whose ministers accepted it. Justin Trudeau, Canadian prime minister moved to Brussels on 30 October 2016 to sign on behalf of Canada. It sanctioned by the European Parliament, most of the agreement will take effect on a provisional basis. The remaining parts of the agreement are subject to approval by national legislatures.

The European Commission indicates the treaty will benefit the country to save of more than half of a billion euros in taxes for EU exporters every year, joint recognition in planned professions such as architects, accountants and engineers, and easier transfers of company staff and other professionals between the EU and Canada. This created more job opportunities for highly qualified professionals. The European Commission claims CETA will generate a more level in performance field between Canada the EU on intellectual property rights.


Primarily, many of its provisions on copyright were in thought to be identical to the controversial ACTA, which was rejected by the European parliament in 2012. The European Commission has indicated that this is not the case.

The main Portion of the Agreement is harsher enforcement of intellectual property, as well as liability for Internet Service Providers(ISP), a ban on technologies that can be used to circumvent copyright, and other provisions comparable to controversial ACTA, DMCA, PIPA, and SOPA,

  • Copyright term extension. Under the Berne convention the term of copyright law in Canada is life of the author, in addition 50 years. The EU is demanding that Canada add an additional 20 years by making the term life plus 70 years.
  • WIPO ratification. As per the WIPO internet treaties Canada must respect the rights and obligations. The EU only formally ratified those treaties [in the week of 16 December 2009].
  • Anti-circumvention provisions. According to the EU Canada must implement anti-circumvention provisions that contain a ban on the circulation of circumvention devices. There is no such requirement in the WIPO Internet treaties.
  • Resale rights. As per the EU agreements Canada must implement a new resale right that would make available artists with a royalty based on any resales of their works.
  • Making available or distribution rights. This shows EU is demanding that Canada implement a distribution or making available right to copyright owners.
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Strength and weakness of Europe and Canada

Strength of Europe

1. Tax welcome trading among followers
one of the foremost welfares that are existing to the member nations of the EU is that they are able to craft with additional affiliates at no extra tax policy. This supports to keep charges of properties and diet depressed in these nations.

2. Unlocks additional openings
Program between all of the nations in the EU is entirely free and exposed for all peoples. This unlocks up many more career and edification chances for public. Specially ones who are in deprived nations.

3. Values is not missing
The EU has not ever had an “official language” and doesn’t restrict with the cultural parts of any nation. This aids to certify that, while you are part of the union, you are also your personal nation.

4. A shared currency
All of the fellow kingdoms of the EU have the identical type of exchange, the euro. This makes doing corporate, wandering or moving to further republics, and obtaining things much modest. It also makes a logic of harmony among the realms.

Weak points of Europe

1. Communication fences
It develops actual tough for the EU to communicate with all its peoples since they all speak unlike verbal. This also influence the sensitivity of unity among its followers. It makes it tougher to bring public organized.

2. Common wealth is not permanently decent
Great and rich nations that are followers of the European Union, like Germany, have to stake their capital with much smaller and inferior realms. This avoids any one country from too powerful, which is a depraved thing for kingdoms that have the capability to become world bests.

3. Departure is a tricky
once a nation agrees to join the EU, it is enormously tough for them to leave it. This makes several individuals troubled from linking, because if it destructively effects their nation, there is tiny that they can do about it.

4. Differentiates against possible associates
In order to link the European Union, you must be a portion of Europe. Europe’s boundaries are mostly open-ended, which gives the EU the authority to pick and take who they would comparable to join the union.

Strength of Canada

1. Entrepreneurial care: The Canadian administration cares entrepreneurship. With several avenues of tax discounts and tax breaks, Canadian entrepreneurs feel more self-assured (reporting less fear of letdown) in structure minor businesses or labeling themselves “self-employed.

2. Niche market growing: Canada has seen a rush of income through exporting in niche markets, with the progress of Canadian diamonds, but largely within the ice wine industry. In 2014, ice wine made active 29% of their over-all export value. And the figures endure to raise.

3. Near to Americans: As the United States’ neighbor, Canada has got the backings of extensive employment surplus with America. This accounts for bumpily three-fourths of Canadian merchandise exports to each time.

Weakness of Canada

1. The changing Canadian dollar: The Canadian dollar has been up and down (mostly down) which has gradually begun a rift through the kingdom. Unfortunately, thousands have vanished works while the dollar stays to incline.

2. Dependence on the US: While the nearness to America assists as a profit to Canada, the dependence can be a softness. A huge percentage of Canadian exports (over 74%) drive to America. During the US collapse, Canadian exports were wounded. So, if the US markets ache, Canada may also.

Trade agreement between Canada and Europe

The Comprehensive Economic Trade Agreement (CETA) is a tax-free trade agreement between Canada and European Union. This agreement came into action in July 2016. CETA will help Canada to get global exposure in trade. The contract deducts the tariff barrier between Canada and European Union. This agreement is a liberal trade contract which covers virtually all aspect and sectors of Canada -EU trade in order to eradicate or avoid trade walls.

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Critics oppose the treaty in light of the fact that it will debilitate European consumer rights, including those concerning sustenance security, and that tariffs are already very low. It has also been scrutinized as a boon only enormous business and multinational organizations while risking net-losses, unemployment, and environmental damage affecting individual residents. The deal also includes a controversial investor-state dispute settlement mechanism. The agreement has prompted protests in Europe and Canada.

Import and export-Trade picture

In 2015 Canada was the EU’s 12th most important trading partner, accounting for 1.8% of the EU’s total external trade. The EU was Canada’s second most important trading partner, after the U.S., with around 9.5% of Canada’s total external trade in goods in 2015.

  • The value of bilateral trade in goods between the EU and Canada was €63.5 billion in 2015. Machinery, chemicals and transport equipment dominate the EU’s exports of goods to Canada. Pearls and precious metals, and mineral products dominate the imports of goods from Canada. Machinery and chemicals also constitute an important part of the EU’s imports from Canada.
  • European investors held investments worth €274.7 bn in Canada while Canadian direct investment stocks in the EU amounted to almost €166 bn in 2014.

Key elements of the EU-Canada Comprehensive Economic and Trade Agreement

  • Eliminating obligations – this will happen rapidly with the greater part of them going when the assertion goes into compelling. Generally speaking, both sides will completely dispose of tariffs on over 99% of all tariff lines.
  • Industrial taxes – these will be completely changed sparing EU exporters a normal around €500 million (practically C$ 700 million) in obligations a year. As such, EU exporters will be relieved of the expenses of paying levies when offering selling goods on the Canadian market.
  • Agricultural levies – Canada is an exceptionally important fare showcase for EU rural and prepared agrarian items, with yearly offers of over € 2.9 billion. The agreement will rapidly – largely at entry into force – dispose of obligations on farming. Before the finish of the transitional periods, Canada and the EU will change, separately, 92.8 % and 93.5 % of exchange lines in horticulture.
  • Fisheries – most obligations will be wiped out at entry into force. Other than duties, the fish bundle additionally incorporates different components important to EU firms, for example, better access to Canadian fish for the EU preparing industry. Reasonable fisheries will be created in parallel, specifically with respect to checking, control and reconnaissance measures, and the battle against illicit, unreported and unregulated fishing.


On 13 May 2003, Canada asked for conferences with the European people group concerning certain measures taken by the EC and its part States influencing imports of farming and nourishment imports from Canada. With respect to group level measures, Canada stated that the ban connected by the EC since October 1998 on the endorsement of biotech items has limited imports of horticultural and nourishment items from Canada. With respect to State-level measures, Canada attested that various EC part States keep up national advertising and import bans on biotech items despite the fact that those items have as of now been affirmed by the European people group for import and showcasing in the European people group.

As per Canada, the measures at issue gave off an impression of being conflicting with the EC’s commitments under:

Articles 2.2, 2.3, 5.1, 5.5, 5.6, 7 and 8, and Additions B and C of the SPS Assentation;

Articles 2.1, 2.2, 2.8, 5.1 and 5.2 of the TBT Understanding;

Articles I:1, III:4, X:1 and XI:1 of the GATT 1994; and

Article 4.2 of the Farming Understanding.

Canada likewise considered that the measures at issue invalidate or impede benefits gathering to Canada in the feeling of Article XXIII: 1(b) of the GATT 1994.

Australia, Argentina, Brazil, India, Mexico, New Zealand and the Assembled States asked for to join the conferences. The EC educated the DSB that they had acknowledged the solicitations of Australia, Argentina, Brazil, India, Mexico, New Zealand and the Assembled States to join the counsels.

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On 7 August 2003, Canada asked for the foundation of a board. At its meeting on 18 August 2003, the DSB conceded the foundation of a board.

Opportunity for Canada to explore business in European country

Europe has an infrastructure opportunities for Canadian companies. There will be Tariff Exclusion for Trade in Goods. Under CETA 98% of Europe tariff lines will become duty free for Canadian-origin things. In coming seven years there are plans to reduce and eliminate Tariffs of Canadian things which is export to Europe. For future prospects Europe will eliminate tariffs in Agriculture sector, Metal product, Seafood, Oil and gas sector. This new trade deal should be significant for future. But now it depends on Canadian companies on how they familiarize and respond to European opportunities. If they adapt this term confidently, it is good for Canadian economy growth.



•Among the nations, Canada positions second (behind just Mexico) in each of the four segments analyzed – computerized administrations, Research and development administrations, corporate administrations and assembling. Among these areas, Canada shows its most grounded outcomes in Research and development administrations, due to some extent to the government and commonplace Research and development impose credits accessible.

•The high esteem US dollar ended up being a key figure the rankings for some nations. Canada’s cost favorable position in respect to third-put Netherlands just changed barely, while Canada’s cost preference over Australia declined due (to a limited extent) to the estimation of the Australian dollar declining by much more than the Canadian dollar with respect to the US cash.

•From an expense point of view, the UK, Canada and the Netherlands offer the least compelling rates of corporate salary assess over a scope of business areas, all aided by duty motivating forces intended to bolster Research and development and additionally other cutting edge exercises.


1. Tariffs

The Exhaustive Financial Exchange Understanding amongst Canada and the EU, or CETA for short, was not proposed to only tinker with levies on imported products. From the beginning, the objective was a decrease in levies to zero and the opening up of new markets.

Understanding has been come to on a considerable rundown of merchandise. Harper government pastors were out a week ago spotlighting a couple of these, including moderately low-esteem however interestingly Canadian things like maple syrup, kayaks and Tilley caps.

A few areas are balanced for a more considerable score under CETA, and the legislature is planning to advertise the arrangement’s potential in view of territorial interests:

2. Cultivate wares achievement?

The playing field amongst Canadian and European agriculturists is famously hard to level: European nations finance their residential homestead ventures to a degree not seen (and not moderate) in Canada. Truth be told, Canada’s supply-administration framework for dairy, eggs and poultry, which will stay under this assention, is intended to maintain a strategic distance from government sponsorships by controlling the costs purchasers pay to guarantee stable returns for agriculturists.

3. Licensed innovation (copyright)

Few issues have seen as energetic a verbal confrontation among common society gathers on both sides of the Atlantic as this. European requests for augmented licenses on physician endorsed drugs stay one of Canada’s most troublesome choices, as medication expenses for areas and regions could bounce altogether.

Be that as it may, other hot parts of the copyright face off regarding have cooled off. The entry prior this time of Canada’s Copyright Demonstration changes, C-11, facilitated European requests to convey Canadian benchmarks up to scratch.

4. Government acquisition

European access to expansive contracts at all levels of government in Canada has been a key EU request. Be that as it may, Canadian moderators had their very own particular request: A “negative rundown” approach, permitting regions and domains to draw up a rundown of craved exclusions.

Dealing with the points of interest spent a great deal of arranging capital on both sides, however the final product is a rundown of exceptions like the one set up for the Purchase American concurrence with the U.S.


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