Czech Business Today

Mid-February, after months of uncertainty over the outcome of negotiations, the European Parliament gave its green light to CETA – Comprehensive Economic and Trade Agreement between the EU and Canada, paving the way for its provisional application.

The agreement will remove tariffs on the majority of goods and services traded between the EU and Canada, ensure mutual recognition of certification and open up Canadian public procurement market to European companies. Furthermore, it will protect over 140 European geographical indications on the Canadian market and ensure high environmental and social standards. Before the voting in the European Parliament, the Ministry of Industry and Trade of the Czech Republic presented results of the impact study focused on impacts of CETA on the Czech Republic which show that increases in Czech exports can be expected mainly in the agricultural and food, textile and chemical sector. Apart from that, Czech companies will mainly pro t from the improved market access and mutual recognition of certification, as well as reduced tariffs for some of the main Czech export commodities.

European, as well as Czech business organizations welcomed warmly the result of the European Parliament plenary vote supporting CETA agreement, mentioning that CETA is the most advanced trade agreement concluded by the EU so far. It is a great success given the growing protectionist and anti-trade sentiments in the world these days. The agreement should be applied provisionally as of 1st April 2017 as EU national parliaments still need to approve the final version of the agreement.

Czech business organizations continue to support the agreement and hope for a swift ratification of the agreement by the Czech Parliament.