Maritime Components of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA)

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1 Maritime Components of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) Presented to SODES Montreal Presented by Louise Laflamme and Dean Corno November 25, 2014 XXXXX Annex C 1

2 What s in the Agreement? 2

3 Feeder Services Between the Ports of Halifax and Montreal Continuous Services Bulk and containerized cargo Domestic cargos that stay in the Canadian market are not captured by CETA International cargo only must be related to an import or export Vessels must be registered on EU Member State national registry 3

4 Feeder Services Between the Ports of Halifax and Montreal (continued) Single Leg Trips Containerized cargo International cargo only must be related to an import or export Vessels must be registered on EU Member State national or international registry Regulations related to foreign workers onboard vessels undertaking domestic activities (feeder, repositioning and dredging) will continue to be applied on a case-by-case basis 4

5 Repositioning Empty Containers Can be done between any port within Canada Can be done with only the shipowner/operators owned or leased empty containers No payment is allowed either financial or in-kind Can be done onboard vessels of any registry (except for non-eu entities) 5

6 Privately Procured Dredging Services Private users: private ports, harbours and marinas Canada Port Authorities St. Lawrence Seaway Management Corporation Can be done onboard vessels of any registry (except for non-eu entities) 6

7 Federally Procured Dredging Services Floating Plant Clause continues to apply The floating plant vessel must be of Canadian or EU make or manufacture predominantly modified in Canada or the EU and owned by a person in Canada or the EU for at least 1 year registered in Canada or in the EU (and have been granted a coasting trade licence) EU enterprises using EU registered vessels will be able to bid on contracts valued at or above $7.7 million 7

8 Who will have Access to the Domestic Market? 8

9 Who will have Access to the Domestic Market? CETA will provide access to domestic activities to: EU based entities (enterprises incorporated in an EU Member State) using vessels registered according to each concession s condition Non-EU based entities when those are owned or controlled by EU nationals using vessels registered in the EU Non-EU entities based in the United States may not be granted the benefits of the CETA 9

10 Benefits of the CETA Maritime Sector 10

11 Duties on Vessels Duties on vessels originating in the EU will be removed for all vessels Some will be removed immediately Some will be removed gradually: Over a 3-year timeframe: open vessels for the transport of goods and people; refrigerated vessels; production and drilling platforms; drill ships, drilling barges and floating drilling rigs other than those used offshore Over a 7-year timeframe: certain cruise ships and excursion vessels, ferry boats of all kind; and, tugs and pusher craft All duties on Canadian vessels exported to EU countries will be eliminated immediately upon implementation 11

12 CETA Benefits for the Marine Sector Increase in two-way trade between Canada and the EU make Canadian ports more attractive enhance eastern Canada as a gateway to North America enhance border efficiency position Canada to take advantage of changes in global trade routes create new service and logistics options to Canadian shippers and marine service users make moving goods onboard vessels cheaper, faster and more efficient Increase demand for Canadian mining, manufactured and agricultural products. 12

13 Other Interesting Elements of CETA 13

14 International Maritime Transportation Services Chapter Maintains existing obligations and enshrines existing practices: prohibits cargo-sharing arrangements with third countries confirms that access to the movement of government cargo is not restricted confirms the right to contract with road and rail carriers for the provision of door-to-door multimodal transport operations 14

15 What s Next? 15

16 What Are The Next Steps? Legal review and translation to ensure accuracy and consistency Approve of the agreement in Canada and the EU The overall process will take approximately 2 years The complete CETA text is available on the CETA website which remains a great source of information: 16