Contact us at info@eu-canada.com

Benefits for New Brunswick of a Potential Canada-EU Trade Agreement

Benefits for New Brunswick of a Potential Canada-EU Trade Agreement

Jobs, growth and long-term prosperity for hard-working New Brunswickers

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 the number of jobs currently in the city of Moncton to the Canadian economy.

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

Fish and seafood

  • This sector employs more than 7,000 New Brunswickers.
  • 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 New Brunswick’s world-class fish and seafood products in the lucrative EU market of 500 million consumers. This would directly benefit New Brunswickers through more jobs, higher wages and greater long-term prosperity.

Wood and wood products

  • This sector employs more than 4,000 New Brunswickers.
  • Between 2009 and 2011, New Brunswick exported an annual average of $15.7-million worth of wood and wood products to the EU.
  • Current tariffs on Canadian wood and wood products average 2.2 percent, with peaks of 10 percent. These tariff barriers would be eliminated under an ambitious Canada-EU trade agreement.
  • Eliminating tariff barriers would increase sales of New Brunswick’s world-class wood and wood products in the lucrative EU market of 500 million consumers. This would directly benefit New Brunswickers through more jobs, higher wages and greater long-term prosperity.

Agriculture

  • This sector employs more than 5,000 New Brunswickers.
  • Between 2009 and 2011, New Brunswick exported an annual average of $3.8-million worth of agricultural products to the EU, of which many are dutiable.
  • Tariffs on key New Brunswick exports to the EU, such as maple syrup (EU tariffs of 8 percent) and prepared potatoes (EU tariffs of 14.4 to 17.6 percent) would be eliminated under an ambitious Canada-EU trade agreement.
  • Eliminating tariff barriers would increase sales of New Brunswick’s world-class agricultural products in the lucrative EU market of 500 million consumers. This would directly benefit hard-working New Brunswickers through more jobs, higher wages and greater long-term prosperity.

Services

  • The services sector, overall, employs more than 250,000 New Brunswickers.
  • The services sector is a key driver of New Brunswick’s economy, accounting for 74 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 New Brunswick 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.
  • New Brunswick businesses currently have significant investments in the EU in a wide variety of sectors, including agriculture, forestry, manufacturing and aerospace.
  • Putting predictable investment rules in place and guaranteeing access to EU markets will help create a level playing field for New Brunswick’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 New Brunswickers.

Government procurement

  • Workers in New Brunswick 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 New Brunswick’s economy.

For further information, media representatives may contact:

Rudy Husny
Press Secretary
Office of the Honourable Ed Fast
Minister of International Trade and Minister for the Asia-Pacific Gateway
613-992-7332

Trade Media Relations Office
Foreign Affairs and International Trade Canada
613-996-2000
Follow us on Twitter: @Canada_Trade