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Benefits for Manitoba of a Potential Canada-EU Trade Agreement

Benefits for Manitoba of a Potential Canada-EU Trade Agreement

Jobs, growth and long-term prosperity for hard-working Manitobans

An ambitious trade agreement with the European Union would be of significant benefit to Canada, resulting in a 20-percent boost in bilateral trade and a $12-billion increase in Canada’s annual income (gross domestic product).

That translates to an increase of $1,000 to the average Canadian family’s income, or 80,000 new Canadian jobs—which is like adding twice the number of jobs currently in the city of Brandon to the Canadian economy.

Many of Manitoba’s key sectors would benefit from an ambitious Canada-EU trade agreement:

Agriculture

  • This sector employs more than 23,000 Manitobans.
  • Between 2009 and 2011, Manitoba exported an annual average of $154-million worth of agricultural products to the EU, making agriculture Manitoba’s largest exporting sector.
  • Tariffs on key Manitoba exports to the EU, such as seed, including forage plants (EU tariffs of 2.5 percent), rye (EU tariffs up to €93/tonne) and oats (€89/tonne), would be eliminated under an ambitious Canada-EU trade agreement.
  • Eliminating tariff barriers would increase sales of Manitoba’s world-class agricultural products in the lucrative EU market of 500 million consumers. This would directly benefit hard-working Manitobans through more jobs, higher wages and greater long-term prosperity.

Electronics

  • This sector employs nearly 600 Manitobans.
  • Between 2009 and 2011, Manitoba exported an annual average of $25-million worth of electronic products to the EU.
  • Current EU tariffs on Canadian electronics average 3 percent, with peaks of 14 percent. These high tariff barriers would be eliminated under an ambitious Canada-EU trade agreement.
  • Eliminating tariff barriers would increase sales in the lucrative EU market of 500 million consumers. This would create jobs, growth and long-term prosperity for Manitoba’s businesses, workers and their families.

Fish and seafood

  • Between 2009 and 2011, Manitoba exported an annual average of $10-million worth of freshwater fish to the EU.
  • The EU is the world’s largest fish and seafood market, with a global import market averaging $25 billion annually during 2009-2011.
  • Current EU tariffs on Canadian fish and seafood average 11 percent, with peaks of 25 percent. These high tariff barriers would be eliminated under an ambitious Canada-EU trade agreement.
  • Eliminating tariff barriers would increase sales of Manitoba’s world-class freshwater fish products in the lucrative EU market of 500 million consumers. This would directly benefit Manitobans through more jobs, higher wages and greater long-term prosperity.

Services

  • The services sector, overall, employs nearly 500,000 Manitobans.
  • This sector is, by far, the largest in Manitoba’s economy, accounting for approximately 73 percent of the province’s total GDP in 2010.
  • In 2010, the EU’s services import market totalled $1.4 trillion.
  • Current EU trade barriers on Canadian services are citizenship or residency requirements, lack of temporary entry rules, and ownership and investment restrictions. These trade barriers would be reduced under an ambitious Canada-EU trade agreement, directly benefiting businesses and workers in this vital Manitoba sector.

Investment

  • Direct investment by Canadian companies in the EU totalled almost $173 billion in 2011, representing over 25 percent of Canadian direct investment abroad. The same year, direct investment by European companies in Canada totalled almost $161 billion, representing over 26 percent of total foreign investment in Canada.
  • Manitoba businesses currently have significant investments in the EU in a wide variety of sectors, including agriculture, aerospace, defence, building products and environmental services.
  • Putting predictable investment rules in place and guaranteeing access to EU markets will help create a level playing field for Manitoba’s investors and businesses and reduce the risks associated with investing abroad. This would lead to greater two-way investment, which would help create jobs and long-term prosperity for hard-working Manitobans.

Government procurement

  • Workers in Manitoba and the rest of Canada employed in fields such as engineering, architecture and technology could benefit from greater access to the EU’s procurement market, which is worth an estimated $2.4 trillion.
  • Greater access to the world’s largest procurement market would benefit workers and their families in sectors that are vital to Manitoba’s economy.