• A First Look at the EU-Canada Comprehensive Economic and Trade Agreement – CETA
  • August 7, 2017 | Author: Roberta Crivellaro
  • Law Firm: Studio Legale Withers - Milan Office
  • New on the horizon in Food & Beverage, given the forthcoming entry into force of the EU-Canada Comprehensive Economic and Trade Agreement (CETA), a trade and economic agreement that will impact heavily on the Canadian and European agri-food markets.

    The long-negotiated agreement was concluded on 30 October 2016 between the European Union and Canada and on 17 February the text was approved by the European Parliament. With this vote, the text came into force provisionally, but it should be ratified by individual member states (Latvia is the only EU country that has already ratified it) to produce its effects.

    On 27 June 2017, the Foreign Affairs Committee of the Senate of the Italian Republic approved by Senate Act no. 2849 the ratification of the CETA. On May 16, 2017 The treaty received royal assent, the last step of the Canadian legislative process, by the Ottawa Parliament.

    The unofficial implementation date is scheduled for 1 July 2017. The CETA covers a broad spectrum of issues and will allow, inter alia, the abolition of 99% of commercial duties, the opening up of the Canadian market for services and access To Canadian public procurement for European companies.

    The agreement also incorporates some of the key principles of Community law such as the protection of intellectual property and geographical designations of protected origin, the imposition of European Community standards on food safety (eg hormone-free and GMO- Free) and protection of investment.

    In resolving disputes, CETA introduces an innovative investment protection law (ICS) system. This system differs from the traditional investor-state disputes settlement system (ISDS) due to its advertising features, stability (the judicial body will be permanent and not temporary), transparency (open auditions open to the public with motivation obligation Of decisions) and the professionalism of the offices (public court composed of independent judicial judges).

    The free trade space created by this agreement will unite 36 million Canadians and 508 million Europeans. At present, the trade balance between Europe and Canada is stable at 64 billion Euros with an annual average increase in ' Exports are about 2.9%. At national level, Italy exports goods and services to Canada for a value of more than 5 billion and it imports about 2. These numbers are expected to grow, in particular following the entry into force of the CETA.

    Among the sectors most affected by the agreement is the agri-food sector. Italy is the second largest exporter to Canada in the food sector and currently exports goods of about 530 million, of which 300 million are derived from the sale of wine. Within seven years of the entry into force of the CETA, 90% of the duties of the sector will be removed and duty-free quotas will be increased proportionally.

    As already anticipated, this will not mean a lowering of food safety standards as the goods exchanged will have to comply with European regulations and standards, including plant protection products. Made in Italy, known and appreciated in the world, will find its worthy recognition in Canadian territory also thanks to the protection and identification of 41 protected geographical indications in Italy (including, for example, S. Daniele ham, Asiago cheese, balsamic vinegar of Modena).

    In the wine & drinks sector, CETA incorporates and integrates the 2004 EU-Canada Wines and Spirits Agreement, by making some changes in melius, such as the numerical limitation of commercial activities (in the provinces of ' Ontario and British Columbia) for the exclusive sale of native Canadian products, the prohibition on imposing a quota of Canadian local produce from the imported product (thus allowing European producers to export and sell PGI products) and a renewed calculation Of the so-called service costs applied on the basis of the volume of imported alcoholic liquor.

    In conclusion, CETA is intended as an instrument for small and medium-sized Italian businesses with commercial interests with Canada - nowadays about 13,000 - in particular if they are active in the agri-food business. It remains to wait for the provisional expectations of the immediate effectiveness of the treaty to come into force and to approve the text in its entirety at national level. The prohibition on imposing a local Canadian local quota from the imported product (thus allowing European producers to export and sell IGP products) and a renewed calculation of the so-called service costs applied on the basis of the volume of imported alcoholic liquor. In conclusion, CETA is intended as an instrument for small and medium-sized Italian businesses with commercial interests with Canada - nowadays about 13,000 - in particular if they are active in the agri-food business. It remains to wait for the provisional expectations of the immediate effectiveness of the treaty to come into force and to approve the text in its entirety at national level. The prohibition on imposing a local Canadian local quota from the imported product (thus allowing European producers to export and sell IGP products) and a renewed calculation of the so-called service costs applied on the basis of the volume of imported alcoholic liquor. In conclusion, CETA is intended as an instrument for small and medium-sized Italian businesses with commercial interests with Canada - nowadays about 13,000 - in particular if they are active in the agri-food business. It remains to wait for the provisional expectations of the immediate effectiveness of the treaty to come into force and to approve the text in its entirety at national level. Service costs applied on the basis of the volume of imported alcoholic liquid. In conclusion, CETA is intended as an instrument for small and medium-sized Italian businesses with commercial interests with Canada - nowadays about 13,000 - in particular if they are active in the agri-food business. It remains to wait for the provisional expectations of the immediate effectiveness of the treaty to come into force and to approve the text in its entirety at national level. Service costs applied on the basis of the volume of imported alcoholic liquid. In conclusion, CETA is intended as an instrument for small and medium-sized Italian businesses with commercial interests with Canada - nowadays about 13,000 - in particular if they are active in the agri-food business. It remains to wait for the provisional expectations of the immediate effectiveness of the treaty to come into force and to approve the text in its entirety at national level.