Definition
Canada-Europe Trade Agreement (CETA)
The Canada-Europe Trade Agreement (CETA) is a free trade agreement between Canada and the European Union that eliminates most tariffs on goods and services.
The Canada-Europe Trade Agreement (CETA) is Canada’s most comprehensive free trade agreement. It was negotiated between Canada and the European Union (comprised of 28 member countries).
One important benefit of CETA is the elimination of tariffs taxes on international goods moving into a country. Eliminating tariffs makes it easier and more cost-effective for Canadian companies to sell to European countries and vice-versa.
The agreement came into effect on September 21, 2017. The EU has eliminated 97.7% of tariffs on Canadian goods, with a goal of 98.7% by 2023. In Canada, 98.2% of all tariffs on EU goods have been eliminated and targets of 98.6% by 2023.