CETA: What does the Canada-EU trade deal mean for your business?

What is CETA?

The Canada-EU Comprehensive Economic and Trade Agreement came into effect on September 21, 2017. Its main benefit for Canadian entrepreneurs is the significant reduction of tariffs on Canadian exports to the EU.

Under CETA, 99% of Canadian goods are allowed to enter the EU duty-free. Gone are customs duties that were as high as 25%. Before CETA, only one in four Canadian products exported to the EU was duty-free.

CETA also abolished many non-tariff barriers, such as rules of origin, import quotas and other technical obstacles to trading with one of the world’s largest economies.

The agreement makes it easier for Canadian entrepreneurs to reach over 450 million consumers.

Beyond tariffs, CETA also covers:

• Rules of origin: Canadian exporters benefit from preferential tariff treatment for products that are “made in Canada.”
• Red tape: Procedures for the release of goods have been simplified. Goods can be released at the first point of arrival, and documentation requirements for low-values goods have been streamlined.
• Government procurement: CETA gives Canadian businesses access to European government contracts at all levels, creating new opportunities with regional and local governments.
• Increased mobility for company employees: CETA makes it easier for Canadian skilled professionals to work temporarily in the EU.
• Direct investment: CETA’s direct investment rules guarantee Canadian investors secure access to the EU. This should be of interest to the energy, mining and manufacturing sectors as well as financial services, automotive vehicles, aerospace, transportation, business services and professional services.

As of 2025, 17 EU Member States have completed their national ratification processes for CETA. The following 10 still need to ratify CETA at the national level: Belgium, Bulgaria, Cyprus, France, Greece, Hungary, Ireland, Italy, Poland and Slovenia.

How have Canadian exports to the EU changed under CETA?

From 2018 to 2024, most Canadian provinces increased their exports to the E.U., despite a dip in 2020 due to the pandemic. Among them, Ontario, Quebec and Saskatchewan saw the strongest export growth, with Ontario and Quebec consistently leading all provinces in total exports to the EU.

As of 2024, Canada exported $34 billion to the EU., a 57% increase from 2015. According to the Government of Canada, the most significant increases occurred in 2021 and 2022, with exports growing by +9.35% and +17.66% and imports by +12.67% and +18.39%, respectively.

These surges suggest that CETA may have facilitated greater market access and trade flows, especially as economies rebounded post-pandemic.

How does CETA affect Canadian entrepreneurs?

CETA has eliminated tariffs on 94% of Canadian food products, giving a boost to businesses in the agri-food market, where Canada already has a strong international reputation. For instance, EU tariffs on frozen lobster and frozen crab have been removed under CETA, benefitting seafood exporters.

According to Export Development Canada, sectors such as zinc, sugar and cereals have seen CETA utilization rates near 100%.

Since CETA’s provisional application in 2017, trade in goods grew by 65% and services by 90%, with an overall increase of 72% from 2016 to 2024.

Key traded goods

• machinery
• chemicals
• phamaceuticals
• mineral products

Top services

• travel
• transport
• telecommunications, computer and information (ICT)

EU GDP benefits by €3.2 billion annually due to CETA. FDI stocks in 2023 were €242.9 billion from the EU to Canada and €249.5 billion from Canada to the EU.

For more information on which sectors offer the best opportunities in Europe, visit Export Development Canada.

Does CETA give service providers better access to the EU market?

Under CETA, Canadian services exporters are treated the same way as those from the EU, and vice-versa.

Service exporters benefit from the ability to bid on EU government procurement contracts. This means that Canadian companies in the fields of architecture, construction, environmental services, technology, marketing consulting and research and development, amongst others, have access to a three-trillion-euro (C$4.6 trillion) market.

However, European companies can also bid on Canadian government procurement contracts, making the market more competitive.

How do I know what tariff will be levied on my export?

You can use the Canada Tariff Finder tool to identify what tariff will be levied on your export. You can also ask the Canadian Trade Commissioner Service for information on specific products and services.

How does CETA affect labour mobility and professional qualifications?

CETA streamlines entry and visa procedures to make it easier for Canadians to do business in the EU and for Canadian companies to hire EU professionals. There are no import quotas on services or service providers, and business visitors can enter without work permits for investment purposes.

In addition, Canadian service companies no longer have to maintain a representative office in the EU to supply services to EU customers. This is especially helpful for smaller companies that lack the resources to establish permanent offices overseas.

Finally, the agreement provides a framework for professional orders and organizations in both markets to work out qualification equivalencies. This makes it easier for all parties to accept these standards and certifications.

How can Canadian business owners learn more about CETA?

You can learn more on Export Development Canada and Global Affairs Canada’s dedicated CETA website. If your business is considering an expansion, the Trade Commissioner Service also has a guide for Canadian businesses exporting to the EU.

BDC experts can also help you gear up to gain the maximum benefit from your export project.