MAC welcomes progress towards finalising EU trade agreement
TORONTO (miningweekly.com) – The Mining Association of Canada (MAC) on Friday praised the federal government's progress towards finalising the Canada-European Union (EU) Comprehensive Economic and Trade Agreement (CETA).
Prime Minister Stephen Harper and European Commission President Jose Manuel Barroso on Friday announced in Brussels that they had reached an agreement in principle on a comprehensive trade agreement that would significantly boost trade and investment ties between the two partners, and create jobs and opportunities for Canadians.
"Given the global nature of our [mining] sector, the Canadian mining industry is highly supportive of the formation of new trade agreements with key markets. Today's agreement in principle on the comprehensive economic and trade agreement is a significant step forward that, once finalised, will eliminate existing European tariffs on Canadian mineral products, help facilitate labour mobility, and encourage European investment in the Canadian mining sector,” MAC president and CEO Pierre Gratton said.
The EU is Canada's second-largest export market for Canadian metals, the third-largest market for nonmetals, and the fourth-largest market for mineral fuels.
On a yearly average between 2010 and 2012, Canada exported $20.4-billion worth of metal and mineral products to the EU, led by precious gems and metals. Critical exports included gold, nickel, diamonds, aluminium and iron-ore.
Upon implementation, the new agreement would eliminate 98% of Canadian and eurozone tariffs, while phasing out remaining tariffs over time.
Of specific interest to the Canadian mining industry is the elimination of aluminium and aluminium products, from rates averaging 6.3%, with peaks of 10%; nickel and nickel products, from rates of up to 3.3%; nonferrous metals, including copper, zinc, lead and tin, from rates averaging 3.1% with peaks of 9%; and iron and steel and its products, from rates of up to 7%.
The agreement also expands into areas of investment, labour mobility and enhanced regulatory cooperation. The CETA is the first bilateral trade agreement in which Canada had included provisions on regulatory cooperation. By fostering cooperation earlier in the regulatory process, differences in approaches between Canada and the EU could be reduced, resulting in fewer barriers to trade once regulations are put into place.
The MAC said the CETA's temporary entry provisions would make it easier for highly-skilled professionals, such as engineers and senior managers, to work in the eurozone and vice versa.
Further, investment provisions in the CETA were expected to provide greater certainty, stability and protection to investments from both jurisdictions.
Canada's mining industry is responsible for about 10% of Canadian direct investment abroad, and 9% of foreign direct investment in Canada.
"Foreign investment into Canada contributes directly to job creation, Canada's mining services sector, and to our nation's overall economic prosperity," Gratton said.
“For these and other benefits accompanying freer trade, MAC encourages the federal government to continue with its active trade agenda, through negotiating and, where possible, finalising other free trade agreements and foreign investment promotion and protection agreements.”
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