EU Agreement Could Mean Opportunity For Atlantic Exporters
HALIFAX–The pending Canada-EU trade agreements can be good news for Atlantic manufacturers– If they know what they’re doing.
The Comprehensive Economic and Trade Agreement would improve access to the largest market in the world. But a new report by the Atlantic Provinces Economic Council (APEC) says if Atlantic exporters want to break-in to the EU’s complex and diverse market, they need to understand it.
“The EU is the biggest integrated market in the world,” said David Chaundy, APEC’s senior economist. “With 500 million potential customers it is 10 times bigger than the Canadian economy and larger than the US. It’s not surprising exporters are looking at the possibilities.”
But to turn possibilities into money, Atlantic manufacturers will have to carefully assess the 28 member states. APEC’s research found working with a local partner has benefited several Atlantic Canadian firms already doing business in Europe. The EU accounts for 7.4 per cent of Atlantic manufacturing exports, not including refined petroleum. Newfoundland and Labrador has the highest share in Canada at 14.8 per cent.
The trade agreement will reduce trade barriers, eliminate tariffs and improve labour mobility. It will also give Atlantic firms the opportunity to pursue high-value public contracts at all levels of government. But Chaundry says firms will still need to make themselves standout from their European competitors.
“Atlantic firms with differentiated niche products are key to the region’s future export success. Whether in the EU or elsewhere, efforts to encourage the creation and growth of such innovative firms should remain a priority,” Chaundry said.