3RD TUESDAYS…A THOUGHT LEADERSHIP SERIES

EU-Canada Comprehensive Economic Trade Agreement

Keynote Speaker: Dr. Jayson Myers,

President & CEO Canadian Manufacturers & Exporters

‘3RD TUESDAYS’

Thank-you to our event sponsor:

Thank-you to our media sponsor:

Canada's Technology Triangle Inc. is a not-for-profit, public-private regional Foreign Direct Investment (FDI) partnership that markets the competitive advantages of the Waterloo Region to the world, to attract businesses, investment and talent to the Region.

As an information provider and business network facilitator, CTT Inc. is typically the initial point of contact for enterprises outside the Waterloo Region interested in start-up, expansion or relocation.

ABOUT US

CTT INC. BUSINESS DEVELOPMENT TEAM

John G. Jung Chief Executive Officer

Jason Kipfer Senior Business Development Officer

Catherine Bischoff Senior Business & Marketing Analyst

Ann Gray Director of Corporate Development & Administration

Stephanie Baskerville Business Development Coordinator

www.cme-mec.ca

Canada’s Comprehensive Economic & Trade Agreement with Europe Seizing Business Opportunities Now

www.cme-mec.ca

The CETA • Comprehensive Economic and Trade Agreement (CETA) between

Canada and the European Union – Agreed in principle October 2013

– A few details still to be ironed out (regulatory cooperation)

– “Scrubbing” and translation into legalese required

– Translation into 28 languages

– CETA needs to be ratified by the Canadian Parliament

– Changes in provincial and national legislation need to be ratified by respective legislatures

– Political agreement needs to be ratified by the European Parliament

– CETA likely to be implemented in late 2015/early 2016

www.cme-mec.ca

The Wayne Gretzky of Trade Deals • Why is Canada’s CETA with the European Union “the Great One”?

– Most extensive economic and trade agreement ever concluded by Canada

– Most comprehensive and ambitious trade agreement ever concluded between two major economies

– CETA will give Canadian businesses preferred access to the largest, richest, most technologically sophisticated market in the world

– Addresses most of the tariff and non-tariff barriers to trade and investment that have made the EU a daunting market for Canadian exporters

– Goes to where the puck will be in international business – services, standards, regulations, labour mobility, procurement, investment, IP, as well as tariffs

– Canada will gain “National Treatment” and “Most Favoured Nation” status

– Sets a new standard for 21st century trade agreements

– All provincial and territorial governments a part of the negotiations and supportive

– Canada the only country with extensive preferred access to both NAFTA & the EU

www.cme-mec.ca

Opportunities for Canada • The European Union

– 28 member states

– 500 million consumers

– World’s largest economy = $17 trillion

– World’s largest importer of goods ($2.3 trillion)

– $2.7 trillion procurement market

• Joint Canada-EU economic study – 20% increase in bilateral trade

– $12 billion annual increase in Canada’s GDP

– 80,000 new jobs for Canadians

• Likely a gross underestimate – New markets will open up as a result of the CETA (procurement, services)

– Growing number of technology and business partnerships among small and mid-sized companies – EU companies looking to invest /do business in Canada

– CETA will drive more investment in Canada

– Connections through European MNEs to supply chains around the world

www.cme-mec.ca

Opportunities for Ontario Business

• Advanced manufacturing technologies – automation, robotics, production equipment, materials, software and ITC systems

• Automotive

• Aerospace

• Pharmaceuticals

• Chemicals and plastics

• Agri-food

• Agricultural and forestry products

• Consumer products

• Equipment and technologies for industrial, construction, procurement markets

www.cme-mec.ca

Positioning for Success • How do we find new customers?

– New export markets

– New supply chains

• How can we compete? – Focus on customer solutions

– Differentiate on the basis of specialization through design, engineering, technological innovation, quality, customer service

– New customers will drive product and process innovation, adoption of new technologies and new skills

• How can we lower the risk/cut the cost of developing new markets? – Lean product/export development

– Partnerships – based on qualified leads

• How can we win investments/product mandates? – Leverage Canada’s privileged location vis-à-vis NAFTA and EU

– Continuously improve infrastructure/business environment within Canada

www.cme-mec.ca

How the CETA will Help • Certainty with respect to rules and dispute settlement

• Simplifies trade procedures and reduces export costs – 98% of all EU tariffs eliminated when CETA comes into force

– Seven year tariff phase out for autos, seafood, come agricultural products, ships

– National treatment of goods that Europe imports from Canada

– Rules of origin that recognize integrated supply chains

– Quotas for autos, textiles, processed foods

– Autos – 50% rule of origin (55% after seven years), quota of 100,000 vehicles, cumulation provision in case of EU-US FTA, cooperation on integrated standards

– Automated and transparent customs procedures

– Reaffirms rights for trade remedies, subsidies

– First agreement on regulatory cooperation in any Canadian trade agreement

– Equivalency provisions and cooperation mechanisms for technical & health regulations

– Acceptance of test results and product certification

– Free access to EU dairy market (increased quota for Canadian cheese imports, no impact on other supply managed goods)

www.cme-mec.ca

How the CETA will Help • Enables services and investment

– Negative list of services liberalization (exclusions for health care, education, culture, public services)

– Equitable treatment of investors

– Improved investor-state dispute settlement procedures

• Easier labour mobility – Mutual recognition of professional qualifications

– Streamlined recognition of foreign standards and credentials

– Temporary entry for intra-corporate transferees, investors, short term business visitors

• Preferential access to European procurement markets – Canadian companies treated like European companies – access and thresholds

• Protects Intellectual Property – Strengthens protection for pharmaceuticals, common rules for copyright, patents,

trademarks

• Enhances institutions and dispute settlement procedures

www.cme-mec.ca

A “Shout Out” to Canada’s Negotiators

• Steve Verheul – Chief Negotiator

• Negotiating Team

• Minister Ed Fast

• Prime Minister Harper

www.cme-mec.ca

The Power of Partnerships • CETA opens a door – it’s up to Canadian businesses to take advantage of

the opportunities

• A broad range of support to identify opportunities and reduce risk

– CME – identifying leads for business and technology partnerships and soft landing services in Europe

– CTT – growing investment and supply chain opportunities

– Local business networks – expert advice from business colleagues

– Trade Commissioner Service

– Export Development Canada

– NRC/IRAP

– Federal and provincial programs that can help

– Colleges and universities

– Customers, suppliers, financial and business services

www.cme-mec.ca

Identifying Leads: Enterprise Europe Network • CME is Canada’s hub for accessing the Enterprise Europe Network – a network of

intermediary organizations (industry associations, universities and innovation centres, economic development agencies) in 54 countries that work to identify qualified leads for international business and technology partnerships for SMEs

• Through our participation in EEN, we are able to respond to incoming offers and requests for partnerships and profile Canadian companies that are looking for partners in other markets

• In Canada, we are partnering with the Trade Commissioner Service, NRC, and other organizations (in what we are calling the Enterprise Canada Network) to help them identify potential opportunities for technology partnerships for their clients – providing access to EEN on a subscription basis

• Our membership in EEN also provides us contact with organizations throughout the network that will help us provide business intelligence for our members, host CME business missions, and arrange B2B networking opportunities

www.cme-mec.ca

EEN Database Snapshot

• 13,051 profiles posted (as of 2013)

– 5,833 technology profiles

– 7,146 business profiles

– 72 research profiles

• 32,045 partnership opportunities across 25 industry

sectors

www.cme-mec.ca

Technology Partnership Opportunities

Electronics, IT, Telecommunications

20%

Industrial, Manufacturing &

Processing 18%

Materials 7% Transport

4% Construction

5%

Energy 11%

Physical & Exact Sciences

4% Measurement, Testing,

& Standards 2%

Medicine, Human Health

8% Biology, Biotechnology

3% Agriculture, Forestry,

Marine Resources 3%

Agrifood 5%

Safety, Waste Management, Environment

8%

Society & Economy 2%

www.cme-mec.ca

Opportunities by EU Member Country Opps Country Opps Country Opps

Austria 88 Germany 849 Netherlands 299

Belgium 142 Greece 253 Poland 1030

Bulgaria 178 Hungary 416 Portugal 156

Cyprus 9 Ireland 97 Romania 791

Czech Rep. 167 Italy 1351 Slovakia 217

Denmark 104 Latvia 80 Slovenia 154

Estonia 44 Lithuania 103 Spain 1166

Finland 49 Luxembourg 12 Sweden 196

France 777 Malta 26 U.K. 1200

www.cme-mec.ca

For More Information

• Enterprise Canada Network

• http://ecn.ignitewebsolutions.com/english/

• Phil Turi, International Business Services Director, CME

• Philip.Turi@cme-mec.ca

• Trade Commissioner Service

• www.international.gc.ca

‘3RD TUESDAYS’

Thank-you to our event sponsor:

Thank you!

Join us for our next 3rd Tuesdays Thought Leadership Series Event

April 15th Waterloo Region-Toronto Super Corridor – The Waterloo Region GO-Train Proposal