Europe, Middle East and Africa Division Europe and the Canada-European Union Comprehensive Economic & Trade Agreement (CETA) December 15, 2017 Evan Lewis, Director Europe, Middle East and Africa Division

The EU is an important market for Canadian agriculture and food The EU is the world’s second largest economy with a market of 510 million consumers World’s largest importer of agriculture and agri-food products Top market for value-added, which Canada has yet to fully develop Canada’s fourth-largest agri-food export market ($3.5 billion in 2016) Top Canadian exports: soybeans, wheat, canola seeds and corn Diverse mix of markets: agri-food export opportunities, and awareness/perception of Canadian brand EU Agriculture and Food Imports, 2016 (value: $CDN)

The potential for expansion is considerable Canada’s Overall Market Share = 2.0% Market Share of Products That Canada Supplies: 3.01% $177.2 B $114.8 B $3.46B Total EU food imports from the world EU imports of food products supplied by Canada from the world EU food imports from Canada Source: Global Trade Tracker, 2016

Comprehensive Economic and Trade Agreement (CETA) provides an opportunity to increase Canada’s presence… CETA provides significant opportunity to grow and diversify product exports and destination markets (and decrease reliance on traditional export markets, such as the U.S.) Provisional application as of September 21, 2017 (94% of agricultural tariffs are now duty-free) Places Canada at a competitive advantage vis-à-vis competitors who do not have a bilateral trade agreement with the EU. CETA’s focus on sustainable development and our significant investments in climate change and sustainable agriculture further increases Canada’s attractiveness. There are major countries without an EU trade agreement, including the U.S. and China.

CETA will provide Canadian agriculture producers with an advantage over competitors… For example, current EU tariffs on processed foods are complex and trade restrictive: For many processed foods, tariffs are calculated based on dairy, sugar and starches/cereal content. EU tariffs can reach 20%, with ad-valorem equivalents that can often be over 50%, and as high as 100%. CETA will eliminate all tariffs on processed foods With the exception of sweet corn and refined sugar, all processed food tariffs will be eliminated immediately.

CETA will eliminate tariffs on many agriculture and agri-food products… Upon CETA’s entry into force, almost 94% of EU agriculture lines* will become duty-free: Many EU lines* will be progressively phased out over … Pet Food (up to 948 €/tonne) Frozen French Fries (14.4-17.6%) Sweet Dried Cranberries (17.6%) Processed Pulses (7.7%) Soybean and Canola oil (3.2-9.6%) 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) 7 years: Durum Wheat (up to 148 €/tonne) Rye & Barley Grain (up to 93 €/tonne) Common Wheat, low-medium quality (up to 95 €/tonne) Oats (89 €/tonne) Tariff Rate Quota* (TRQ) established for… Common Wheat (100,000 tonnes) Immediate** Sweet Corn, processed (8,000 tonnes) 5 year phase-in Bison (3,000 tonnes) Immediate Beef (50,000 tonnes) 5 year phase-in Pork (80,549 tonnes) 5 year phase-in **Full volume available immediately. Duty-free and quota-free after 7 years. *Not an exhaustive list/Rules of origin will apply

Non-Tariff Market Access Requirements CETA does not change most EU import requirements: 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.) Broad impediments Pesticide and GM authorizations and restrictions Consumer expectations

AAFC has a number of resources available to you Visit www.agr.gc.ca/Europe Our CETA page includes: Useful links to GAC and trade commissioner content as it relates to the EU and CETA Sector reports explaining how stakeholders can export to the EU and how to obtain the preferences available under CETA Infographics highlighting some of the advantages businesses will derive from CETA, and An infographic covering the opportunities that will be shared with you via webinar in January. Targeted reports for each opportunity are to be expected in the next few months. Our trade commissioners in market provide us with recent news and hot topics in the EU

Including information meant to help you navigate opportunities in the EU Market Information: Over 150 reports, covering: Trade data Consumer profiles Market overviews Distribution channels (foodservices, Retail, e-commerce) Sector trends Trends covering health and wellness Commodity innovations Videos covering opportunities in the EU, with 3 new videos in the pipeline: Sector snapshot: pet food in the EU, sector snapshot: Organic foods in the EU, Labelling for the EU 101 featuring our TC in Paris Webinars will be featured on the website in the few months for companies to register – topics are to be confirmed based on business needs and interests Customized Market Research: We can leverage our network to give you information critical to your international success. Contact mas-sam@agr.gc.ca with your questions.

Canada’s Trade Commissioner Service (www.tradecommissioner.gc.ca) Resources MAS Single Window (MAS-SAM@agr.gc.ca) Experts available to address EU trade issues and provide custom market intelligence. Canada’s Trade Commissioner Service (www.tradecommissioner.gc.ca) Connect you to buyers. Help you navigate the consumer market. Assist with country-specific regulatory issues.

Thank you! Evan Lewis Director Europe, Middle East and Africa Division Market Access Secretariat Agriculture and Agri-Food Canada evan.lewis@agr.gc.ca