The tentative free trade agreement between Canada and the European Union, known as the  Comprehensive Economic and Trade Agreement, (CETA), will go far beyond the North American Free Trade Agreement, (NAFTA).  It is designed to eliminate thousands of tariffs, encourage foreign investment and promote movement of labor. Once the agreement is implemented, 98 % of EU and Canadian tariffs will be eliminated immediately.

Prime Minister Stephen Harper, who described the agreement as a “historic win for Canada,” signed the tentative deal in Brussels on Oct. 18, European Commission president Jose Manuel Barroso. The agreement provides Canada with preferential market access to the 28-member European Union, and its more than 500 million consumers and  $17 trillion in annual economic activity.

The deal would also allow Canadian automakers to export more cars and Canadian farmers to export more beef, pork and bison.Once in place, Canadian consumers could also see cheaper prices on items that include food, wines and high-end European cars.

The deal will have far reaching impacts, touching just about every sector of the Canadian economy as well as millions of workers and consumers. The final result could see Canadians paying less for thousands of products made in Europe, such as cars, which are currently subject to a 6% tariff. European companies will also be able to bid on large provincial and municipal government contracts.

While a number of export industries have given the deal high praise, some dairy farmers and cheese producers have expressed concerns. The deal would allow the EU to sell Canada 29,000 tons of cheese, an increase from the current 13,000 tons. Some Canadian farmers fear those provisions could threaten jobs and industries in Canada.

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