Canada benefits from two major trade agreements that facilitate international business development: the USMCA (United States\u2014Mexico\u2014Canada trade agreement, or AEUMC) and the CETA (Comprehensive Economic and Trade Agreement, or AECG).<\/p>\n
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This agreement has just been signed and replaces the North American Free Trade Agreement (NAFTA) to which it remains quite similar while opening up new sectors of activity. It defines a free trade zone for goods and services (excluding agriculture) between the United States, Canada, and Mexico. The goals are to remove customs barriers and facilitate cross-border trade.<\/span><\/p>\n Signed in 2016, this international treaty defines free trade between the European Union (EU) and Canada and puts an end to import barriers, thereby allowing Canadian and European companies to take part in different markets. Indeed, more than 98% of tariffs are removed under certain conditions. However, the value-added tax (VAT) on imports into the EU and the goods and services tax (GST) on importation into Canada are maintained.<\/span><\/p>\n Your company has therefore the opportunity to benefit from the advantages of these trade agreements by respecting certain rules. For example, if you manufacture parts in Poland and export them to Canada, you will not pay customs duties if they respect the eligibility requirements outlined in the CETA. You can then transform your goods in Canada so that the product contains a majority of Canadian components. You will then be able to benefit from the USMCA under certain conditions and sell in the United States.<\/span><\/p>\n By optimizing your production chain and taking advantage of Canada\u2019s key position, you can grow your business internationally and:<\/span><\/p>\nComprehensive Economic and Trade Agreement (CETA) or AECG<\/h2>\n