92 percent of the fruits and vegetables that Spain and the rest of the European Union (EU) export to Canada won't have to pay tariffs once Canada and the EU sign a Comprehensive Economic and Trade Agreement (CETA).
Canada, which has more than 36 million inhabitants and a 43,594 dollars per capita GDP, has always been an attractive market for Spanish products, including its local fruit and vegetable production.
According to Fruit Logistica's newsletter, the CETA can greatly benefit the Spanish horticultural sector. After seven years of negotiations, the approval of this agreement offers new opportunities to farmers and food producers while fully protecting the European sensibilities, according to the European Commission.
According to Fruit Logistica, CETA is expected to benefit large and small European and Canadian exporting companies, as well as consumers. Trade will be boosted with the elimination of almost all of the tariffs traditionally imposed on fruits and vegetables. Europe will be able to export almost 92% of its agricultural and food products to Canada without paying tariffs.
"Canadians will be delighted to have more Spanish companies and agricultural food products in Canada," stated Karen Kennedy, the trade advisor to the Spanish Embassy in Canada.
"Thanks to the CETA, the Canadian and EU taxes on most products will drop to 0% immediately," said Richie Santosdiaz, an expert on international trade. According to data from Eurostat, the European Statistical Office, in 2015, EU fruit and vegetable exports to Canada totalled 78,673 tons worth around 95 million euro. The main product exports were tomatoes, onions, garlic, citrus fruits, and apples.
The exchanges made from Spain are characterized by a growing diversity of fruits and vegetables, according to Fepex, the Spanish Federation of Associations of Exporting Producers of Fruits and Vegetables. The positive impact that this agreement will have on the sector, due to the elimination of tariffs, will strongly boost Spanish horticultural exports. Access to the Canadian market will allow Europe to trade with a country that values the fruit and vegetable industry, stated Santosdiaz.
"Vicasol has been exporting to Canada for more than 15 years. It exports tomatoes, cucumbers, and peppers both from a conventional and organic production. Our products have always been well received by Canadian consumers because they are high quality products. The main problem we've always had have been the high tariffs set on our vegetables," said Jose Manuel Fernandez Archilla, the manager of Vicasol. "The signing of this agreement and the consequent disappearance of the tariffs on our exports is excellent news for us. Our shipments to this great country will significantly increase, which will benefit our farmers and, of course, Canadian consumers," he predicted.
To get the agreement under way, the European Commissioner for Agriculture, Phil Hogan, will head the EU trade delegation that will visit Canada from April 30 and May 3. The aim of this visit will be to boost trade and EU exports, now that the trade agreement has entered into force. The commissioner's delegation will have representatives from the Union's main agricultural food sectors.
In addition to creating new export opportunities, the CETA agreement will prevent both regions from repeating trials of certain products, saving them transaction costs, and will protect food and beverage products with PGI or DO from being counterfeited. More than 140 products will be protected and, even though the list contains 27 Spanish products, it doesn't include any fruit or vegetable in particular. Canada will recognize the Citricos Valencianos as an EU brand, but it will allow Canadian brands to continue selling their products under the Valencia Orange name.
All these measures will facilitate trade between Europe and Canada and will especially favor the relations between farmers, producers, and consumers. The entry into force of the agreement will boost exports and imports of fruit and vegetables on both sides of the Atlantic.
Source: hortoinfo.es