The Impact Of CETA On Canada

808 Words2 Pages

In 2013, the European Union signed a trading pact with Canada in order both sides to increase their foreign market export and boost their economy sectors. This paper will examine the purpose of CETA and its impact on Canadian industry. The focus will be on food, drug, forestry, marine, and mining industries including water supplies in Canada.
CETA, as a trading pact between European Union and Canada is expected to open the markets between North America and Europe. This opening is expected to lower the costs and improve the import of European products in Canada (Chong, 2013). Such lowering of the costs will benefit the citizens who will pay less for products, therefore also fewer taxes (Johnson, 2013, p. 560). Moreover the trade would cause economic growth and creation of more jobs for the Canadian citizens (Chong, 2013). Nearly 80, 000 new work places will be created, thus bringing additional 12 billion dollars to the federal economy (Chong, 2013).
CETA as a trade pact benefits certain Canadian industry’s sectors. One of them is the Food industry which yearly will gain over 1, 5 billion dollars from export to Europe (Ryan, 2014, p. 24-26). European Union will allow Canadian beef to enter the Union without any tariffs (Kimantas, 2014, p.11). It is expected more than 35, 000 tonnes to be exported, thus increasing the initial amount of beef that is originally produced in Canada (Kimantas, 2014, p.11). In addition, the Canada’s Hilton quota, that means a limited amount of beef, can be increased; therefore the amount of beef that have chemicals or contains GMO imported in European Union also will be increased, although many European environmentalists are against such change (Kerr, 2011, p.667). Pork producers will also ...

... middle of paper ...

... pork, certain provinces can hurt the quality of water or to run out entirely of water, in order to take care for the huge amount of animals that will be produced in meat (Kimantas, 2014, p.11). It is estimated that for an example “one ton of beef requires 15,000,000 liters of water” (Kimantas, 2014, p.11). Finally, the marine ports also will suffer in order to meet CETA’s requirements of export. The change in the infrastructure of the ports to be able to facilitate the increased containerization will cost 5.8 billion dollars per year for the Canadian taxpayers. (Ryan, 2014, p.24-26).
In conclusion, although CETA will bring many advantages for the Canadian industry, it will also harm major sectors resulting in decreased sales, increased taxes and lack of investment for Canada’s economy in exchange for technology and open market to millions of customers in Europe.

Open Document