The impact of the Comprehensive Economic and Trade Agreement (CETA) on the export of Machinery and Transportation Equipment (M&TE) from Canada to European Union (EU) countries
Loading...
Files
Date
2018
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
University of New Brunswick
Abstract
After the signing of Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union (EU), 99.6% of prevailing tariffs on Canadian goods entering the EU were eliminated. Machinery and Transportation Equipment (M&TE) is the biggest sector of the Canadian economy contributing 27% of its GDP and the EU is the world’s largest importer of M&TE at €555 billion. Yet, the EU receives only 1.31% of its M&TE imports from Canada. Therefore, it is important to examine its impact on the export of M&TE from Canada to the EU. This study has examined the impact of CETA on the Canadian export of M&TE to the EU by assessing M&TE comparative advantage using trade indicators. The results suggest that CETA will enhance the Canadian M&TE export potential to the EU for goods such as aeroplanes, gas turbines, electrical cabinets, turbojets, and turbo- propellers. This will give Canada a competitive price advantage over China, the USA, Singapore, Japan, the UAE and Brazil. This study will help Canadian exporters to identify the products that they should focus on under the M&TE sector for export to the EU.