Expert report

An analysis of the implementation of the EU-Canada Comprehensive Economic and Trade Agreement (CETA)

Authors

  • Julian Hinz
  • Carsten Brockhaus
  • Sonali Chowdhry
  • Hendrik Mahlkow
  • Vasundhara Thakur
Publication Date

This in-depth analysis offers a quantitative analysis of the Comprehensive Economic and Trade Agreement (CETA) between the EU and Canada, six years after its provisional enforcement. Our analysis confirms substantial economic gains: goods exports from the EU to Canada increased by 27 % and imports rose by 32 % due to the agreement. The services sector also showed robust growth, with 19 % and 15 % increases in exports and imports, respectively. However, the paper identifies challenges, such as the low Preference Utilization Rate (PUR), predominantly among large firms, and highlights that SMEs still account for less than half of the EU's total exports to Canada. Beyond the immediate economic impact, the analysis focuses on key issues in the implementation and offers further quantitative evidence on critical raw material policies and mutual recognition agreements. Sections delve into a descriptive analysis of the bilateral structure of trade, implementation challenges, and offer policy recommendations.

Info

JEL Classification
F13, F15, O24

Key Words

  • Comprehensive Economic and Trade Agreement (CETA)
  • EU-Canada Trade Relations
  • Trade Agreement Impact Assessment