Five facts about the European Union trade deal set to boost Canadian lobster exports
Canada has struck a new trade deal with the European Union (EU), one which members of the US lobster industry fear will cause problems for American business.
The Canada-European Union Comprehensive Economic and Trade Agreement (CETA) was completed in the Parliament of Canada on 16 June 2017. The deal clears tariffs on Canadian lobster, putting Canada lobster exporters at a huge advantage over their US counterparts.
American exporters will be stuck selling lobsters with tariffs ranging from 8 percent for a live lobster to 20 percent on processed or cooked lobster.
Will Canada benefit truly outstrip US exports because of CETA? It seems so. Business Review Canada fished around for facts about Canada’s rich lobster industry and its relationship with the EU, leading us to believe that Canada can only benefit from the dropped tariff. Watch this space for updates.
- Last year, The EU imported over $140 million worth of lobster from Canada. That amount is likely to increase significantly after CETA is adopted.
- The Canadian government established a $325 million fund (Canadian dollars) to boost the Maritimes’ seafood industry. Furthermore, the Lobster Council of Canada discussed using the money to pay for marketing, research and development, and other improvements to promote the Canadian lobster brand, especially in Europe.
- The EU purchases $26 billion in fish and seafood products in an average year. This makes the 28-nation bloc the largest global fish and seafood market in the world, according to Fisheries and Oceans Canada.
- On 1 Jan 2017, China cut tarrifs on Canadian seafood entering its booming market. Canadian exports to China were valued at $634 million as of October 2016.
- A weak Canadian dollar (now valued at about 75 percent of a US dollar) will only make Canadian lobster more attractive to importers in the European Union