Toespraak van minister Reynders op het seminar 'De Canada-EU handels..
Datum: 28 oktober 2015
SPEECH
by Deputy Prime Minister and Minister for Foreign Affairs Didier Reynders at the Seminar
"The Canada-EU trade deal : impact on YOUR Business"
Vancouver, October 28th 2015
After 5 years of intensive discussions, the end of the negotiations with Canada on the Comprehensive Trade and Economic Agreement (CETA) has been announced on the 26th of September 2014.
Once the legal text has been finalised and translated into all EU official languages, it will be put on the agenda of the Council of the European Union for signing and of the European Parliament for approval. In all likelihood, the CETA agreement will be deemed a mixed agreement, both at the
level of the EU and that of Belgium. This means that relevant parliaments will have to ratify the agreement.
CETA is truly a historic achievement. Canada is indeed the first G7 Member with whom the EU agrees on a comprehensive trade deal that creates major opportunities across all areas of the economy.
As an open and dynamic economy, Belgium has supported the negotiation of this agreement, which will create new opportunities for all segments of the economy - including our SMEs. The overall objective of CETA is to increase bilateral trade and investment flows and to contribute to growth,
competitiveness and job creation : Top priorities of the Belgian government!
From a global point of view, CETA will boost two industrialised economies in a period of uncertainty as emerging economic powers are facing a downturn in their short term perspectives. The EU and Canada are trading partners with long-standing historical ties and broad political relations. The
ambitions of the agreement reflect the depth of this relationship.
Today, as we hear voices pleading for protectionism, we send a powerful signal to the rest of the world!: Canada and the EU, two major economies, are willing to open up their markets further, in order to strengthen a relationship that is already worth some 70 billion euros.
The importance of the trade relationship between Canada and the EU is confirmed by the facts and the figures. Canada is the EU's twelfth most important trading partner whereas the EU is Canada's second-largest trading partner.
The figures also demonstrate the importance of trade between Canada and Belgium. Let me recall that thanks to its infrastructures and its central position on the European continent, Belgium already serves as a major point of entry for Canadian exports towards Europe. Bilaterally, the Canadian
exports to Belgium amounted to 2.78 billion euros in 2014, while Belgium's exports to Canada were estimated at 1.90 billion euros.
As far as investments are concerned, the EU is Canada's second-largest source of foreign investment and Canada's investment stock ranks fourth in the EU. Bilateral investments are also very important between Canada and Belgium. Belgian direct investment ranks 11th in Canada on a global basis.
And there are approximately 50 Belgian subsidiaries in Canada and about the same number of Canadian subsidiaries in Belgium. With this agreement, we look forward to broadening the scope for Foreign Direct Investments.
CETA is truly a game changer: Given the high level of bilateral investments and the wide range of goods and services that are already traded between Canada and the EU, CETA is a balanced agreement that will restore the level playing field for European operators in Canada, in comparison to its
NAFTA partners. CETA even goes further! For instance on services market access, and in particular on government procurements, where the opening to European bidders is unprecedented. Indeed, for the first time, Canadian provinces, territories and municipalities will open their procurements to
a foreign partner, going well beyond what Canada has offered within the WTO or under NAFTA. European firms will be the first to be granted such a broad access to Canadian public procurement markets. Our partner has also agreed to further liberalize key sectors such as telecoms and maritime
transport (with no transition period), including new commitments in two sectors in which Belgium has a particular interest: dredging and feedering.
As far as tariffs on Trade in Goods are concerned, Canada and the EU have agreed to eliminate customs duties on imports of almost all goods (either when CETA comes into force, or gradually, within a maximum of 7 years). This will save European exporters around 500 million euros a year and
eliminate bureaucratic obstacles. The chapter on customs and trade facilitation will simplify and make more transparent the customs clearance of goods in order to facilitate bilateral trade and reduce transaction costs for importers and exporters. Among other things, Canada and the EU will
apply simplified, modern and, where possible, automatic procedures for an efficient and accelerated release of goods.
The chapter on Intellectual Property Rights, besides provisions on copyright, trademarks and designs, also includes intellectual property rights for pharmaceuticals. This is ESSENTIAL to Belgium's interests, given the importance of chemicals and pharmaceuticals in our exports to Canada! As a
result, CETA will give European innovations, artworks, trademarks and traditional food products a similar level of protection in Canada. In this way, CETA will also benefit SMEs in Europe. This is another crucial point for Belgium.
The chapter on technical barriers to trade contains provisions that will improve transparency and foster closer contacts between the EU and Canada in the field of technical regulations. Both sides have also agreed to further strengthen the cooperation between their standard-setting bodies as
well as their testing, certification and accreditation organizations. Belgium, especially beer brewers, had for instance a big interest in the monopolies for "liquor boards", for which a positive result has been obtained.
Thanks to strong provisions on sanitary and phyto-sanitary rules, procedures on both sides will be streamlined. Nonetheless, CETA will not change the basic principle that all products shall need to fully comply with applicable sanitary and phyto-sanitary standards, both on the Canadian and on
the EU side.
CETA also establishes a framework for the mutual recognition of professional qualifications and determines the general conditions and guidelines for the negotiation of profession-specific agreements. In sensitive areas, CETA maintains the right of the EU and its Member States to introduce
possible restrictions, for instance on public monopolies and public utilities. The reservations also concern public services such as education, health, social services and water supply.
Concerning the area of audio-visual services, CETA reaffirms the right of both the EU and Canada to preserve and promote cultural diversity.
I would like to stress the chapter on Trade and Sustainable Development, which provides for ambitious rules on labour- and environment-related aspects.
Let me also recall that, while CETA will lead to a comprehensive liberalization of trade and investment and to new opportunities for businesses, the EU and Canada have also placed a strong emphasis on maintaining the highest standards. CETA establishes a framework for a clear and transparent
regulation by public authorities. They will retain the ability to achieve the legitimate objectives of public policies, such as public health, safety, environment, public morals and the promotion and protection of cultural diversity.
The Belgian government is well aware of the legitimate public debate that has surrounded the negotiations of CETA. Therefore, I would also like say a word on the approach to investment protection under this agreement. CETA is the first agreement that puts all EU investors on the same footing,
whether from large or smaller Member States. This should ensure a high level of protection of investors, while fully preserving the right of governments to regulate.
Today, the agreement already sets more precise investment protection standards, and also provides new and clearer rules on the conduct of procedures in arbitration tribunals. These provisions include more transparency as well as strict and enforceable rules on ethics, in order to ensure the
arbitrators' necessary impartiality and expertise. As you know, the improvements regarding ISDS in CETA are only one step in the EU's broader reflection on how to strike the right balance between the necessary protection of investors in international trade and the right of government to
regulate.
I am convinced that both Canada and Belgium can be satisfied with the successful CETA negotiations. With this comprehensive and balanced agreement, we will reinforce our respective and mutual economic interests, therefore bolstering our long-standing and broader relationship. Together, we will
also strengthen our position on the global stage, as we usefully contribute to setting-up higher standards for future trade agreements.
Thank you for your attention!