Canada-European Union Comprehensive Economic & Trade Agreement
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1 Canada-European Union Comprehensive Economic & Trade Agreement Agriculture & Agri-Food Opportunities for Canadian Exporters Agriculture and Agri-Food Canada October 2017
2 CETA provides Canadian agriculture producers with an advantage over competitors As of September 21, 2017, when CETA entered into provisional application, almost 94% of EU agriculture tariff lines became duty-free. For example, previous EU tariffs on processed foods were complex and trade restrictive: - For many processed foods, tariffs calculated based on dairy, sugar and starches/cereal content are prohibitive. - CETA will immediately eliminate all tariffs on processed foods, with the exception of sweet corn and refined sugar. 2
3 CETA eliminates tariffs on many agriculture and agri-food products Upon CETA s provisional application, almost 94% of EU agriculture lines* are now duty-free: Pet Food (up to 948 /tonne) Frozen French Fries ( %) Sweet Dried Cranberries (starting at 17.6%) Processed Pulses (7.7%) Soybean and Canola oil ( %) Prepared Vegetables (20%) Fruit Juices (e.g. cranberry, blueberry) (17.6%) Condiments/sauces (up to 10.2%) Maple Syrup (8%) Fresh Cherries (up to 12%, seasonal) Fresh Apples (up to 9%, seasonal) *Not an exhaustive list/rules of origin apply Many EU lines* will be progressively phased out over 7 years: Durum Wheat (up to 148 /tonne) Rye & Barley Grain (up to 93 /tonne) Common Wheat, low-medium quality (up to 95 /tonne) Sweet Corn, frozen (5.10% / 100kg) Oats (89 /tonne) Tariff Rate Quota* (TRQ) established for Beef (50,000 tonnes) 5 year phase-in Pork (80,549 tonnes) 5 year phase-in Bison (3,000 tonnes) Immediate Sweet Corn, processed (8,000 tonnes) 5 year phase-in Common Wheat (100,000 tonnes) Immediate** **Full volume available immediately. Duty-free and quota-free 3 after 7 years.
4 CETA Rules of Origin for Agri-Food Products Rules of Origin Exporters must ensure their product meets the applicable rules of origin (RoO) to benefit from the preferential tariff that CETA provides. Products that satisfy these RoO are described as originating and only originating products receive preferential tariff treatment under the agreement. Products that are wholly obtained in Canada, such as grains, fruits and vegetables are originating. Products that are produced in Canada using non-originating materials (e.g. materials imported from the US), are originating, providing they satisfy the applicable product-specific rule of origin (PSRO). A binding, written ruling on tariff classification can be obtained in advance of exporting your products to the EU by submitting an application to the EU s Binding Tariff Information (BTI) system. 4
5 CETA Origin Quotas for Agri-Food Products Origin Quotas Under the CETA Origin Quotas, certain processed products that are made in Canada using non-originating materials can qualify for preferential treatment when exported to the EU. Origin Quotas Origin Quota goods will be subject to annual quotas. Once the quota is filled, products will not be eligible for preferential tariff treatment based on these more liberal rules of origin. Origin Quota for certain processed agricultural products: high-sugar containing products; sugar confectionery and chocolate preparations; processed foods; and dog and cat food. 5
6 Requirements will remain the same for Shipments to the EU CETA does not change on-going EU import requirements and/or sanitary requirements exporters need to meet. For example: Federally registered establishment (e.g. meat, fruits, vegetables, maple products) and/or EU approved facility (e.g. pork, beef, pet food) CFIA export and/or health certificate (e.g. meat products, plants) Hormone free requirement (e.g. beef, veal) Ractopamine free requirement (e.g. pork, beef) Labelling (e.g. Font size, nutrition information, identification of GM ingredients, etc.) Visit or contact 6
7 Resources Canada s Trade Commissioner Service ( Connect you to buyers. Help you navigate the consumer market. Help you understand regulatory issues. Doing Business in Europe on AAFC Website ( Comprehensive support to industry via our One-Stop Shop approach online where we feature market and sector information related to exporting and doing business in the EU. MAS Single Window (MAS-SAM@agr.gc.ca) Experts available to address EU trade issues. 7
8 TC Perspective: Labelling, HS Codes, and Country of Origin Yannick Dheilly Trade Commissioner, Paris
9 HS codes and Country of Origin HS codes need to be determined before your exportation to the EU Allows you to make sure this product benefits from the duty-free status under CETA Determine the relevant Product Specific Rules of Origin And eligibility to the Origin quotas Has consequence on sanitary/phytosanitary requirements If your company already exports to the USA, the HS code is the same, up to the 6th digit. If there is a doubt about classification, you need an EBTI (European Binding Tarif Information) The EBTI database can be explored to get some hints «Country of origin» has several meanings: Processed in Canada (country of provenance) Customs origin / CETA. Example of sugar
10 Organic prepacked product Typical labelling requirements for prepacked food products in the EU: (Reg 1169/2011) 9(a) name of the food; 9(b) list of ingredients; 9(c) any allergen; 9(d) QUID; Organic products - labelling 9(e) net quantity of the food; 9(f) date of minimum durability or use by date; 9(g) any special storage conditions and/or conditions of use; 9(h) name or business name and address of the food business operator referred to in Article 8(1); 9(i) the country of origin or place of provenance where required; 9(j) instructions where appropriate; 9(k) actual alcoholic strength by volume (>1,2% alc.); 9(l) nutrition declaration; 10 Additional mandatory particulars for specific types or categories of foods. Ex: date of freezing for meats Another regulation call for a batch number In the local language or multilingual
11 Organic products labelling (2) Organic full equivalency was granted in 2016 through the EU Implementing Regulation 2016/459 which recognizes full equivalency for food products processed in Canada with no limitations Control bodies: CA-ORG-002 British Columbia Association for Regenerative Agriculture (BCARA) CA-ORG-003 CCOF Certification Services CA-ORG-004 Centre for Systems Integration (CSI) CA-ORG-005 Consorzio per il Controllo dei Prodotti Biologici Società a responsabilità limitata (CCPB SRL) CA-ORG-006 Ecocert Canada CA-ORG-007 Fraser Valley Organic Producers Association (FVOPA) CA-ORG-008 Global Organic Alliance CA-ORG-009 International Certification Services Incorporated (ICS) CA-ORG-010 LETIS SA CA-ORG-011 Oregon Tilth Incorporated (OTCO) CA-ORG-012 Organic Certifiers CA-ORG-013 Organic Crop Improvement Association (OCIA) CA-ORG-014 Organic Producers Association of Manitoba Cooperative Incorporated (OPAM) CA-ORG-015 Pacific Agricultural Certification Society (PACS) CA-ORG-016 Pro-Cert Organic Systems Ltd (Pro-Cert) CA-ORG-017 Quality Assurance International Incorporated (QAI) CA-ORG-018 Quality Certification Services (QCS) CA-ORG-019 Organisme de certification Québec Vrai (OCQV) CA-ORG-021 TransCanada Organic Certification Services (TCO Cert)
12 Organic products labelling (3) REQUIREMENTS RELATIVE TO ORGANIC PRODUCTS EU Regulation 834/2007 article 23. Name of the product + ORGANIC ; Also in the list of ingredients. Required: Certifying body number. For example CA-ORG-006 Optional: name of certifying body certified by/certifié par: Ecocert Canada OK Optional (highly recommended): Print the European organic logo on the label, and in this case you need to add below: non-eu agriculture or Canada agriculture if more than 98% of the ag. ingredients are sourced in Canada Other logos can also be printed: COTA, French AB logo, certifier s logo, etc.
13 Organic products labelling (4)
14 Organic products labelling (5)
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