September 21, 2020

The agreement with Canada boosts the export of Spanish vehicles by 236% in two years | Economy

Jean-Claude Juncker announced in 2016 "a new chapter" in relations between the EU and Canada that would give new opportunities to "more than half of the 1,000 million people on both sides of the Atlantic." It is possible that the words of the president of the European Commission were somewhat exaggerated. But the agreement has managed to strengthen trade flows with the North American country: between 2016 and 2018, Spanish imports grew by 34%; and exports 20%. Highlights vehicle sales to Canada, which rose by 236%.

The ambitious EU-Canada trade agreement came into force on September 21, 2017. So its effects on trade with Spain can only be traced in a scant 15 months of 2017 and 2018. In that short period of time, the agreement known as CETA has served to boost both exports and imports, with effects very prominent in the sales of the automobile sector and in the purchases of energy products to the North American country.

The Spanish cars that travel to Canada have experienced a boom in this year and a half, in which they have gone from a modest amount, valued at 59 million euros, to 231 in 2018. "This treaty is an example of the positive examples of the Free trade in the automotive industry. Canada is a small market, but it is gaining importance. And I would not have done it without this agreement ", explain in the employers Anfac, the Spanish Association of Manufacturers of Automobiles and Trucks.

Other sectors that have taken advantage of the agreement, with increases in exports to Canada in the environment of 35%, are the non-chemical semifactures, consumer manufactures and food, drink and tobacco. The CETA eliminated the tariffs applied to 98% of the products with which the EU and Canada trade, which will mean a saving of about 590 million per year when all tariff reductions are applied. One year after the entry into force, the fruit and vegetable sector announced an increase in sales to Canada of 90%, and that of wine, 17%.

The agreement with Canada boosts the export of Spanish vehicles by 236% in two years

Not only Spanish exporters are in luck. The Canadian manufacturers of energy products have increased sales to Spain by 300%, reaching 457 million euros. This great uptick is explained by the availability and low cost of these products in Canada. At the end of the first anniversary, the European Trade Commissioner, Cecilia Malmström, already said she was satisfied with the progress she had made. "The preliminary data indicate that there is much to celebrate," he said.

In the critical sector, environmental groups continue to criticize that the EU's interest is the increase in commercial transactions, regardless of the environmental and social impact. "In the case of Canada, the agreement is the gateway for large American corporations of cloned and cloned antibiotics. Has the EU ensured that the standards will be maintained? No, "says Miguel Ángel Soto, Head of Commerce at Greenpeace. Soto warns that corporate lobbies "will undermine environmental safeguards and undermine the precautionary principle."

The boost to trade caused by the agreement with Canada is no surprise. The evidence suggests that these pacts, despite benefiting some sectors and harming others, have a positive effect on growth. An article presented recently in a conference of Funcas pointed out that, since the entry of Spain into the European club in 1986, trade agreements to which the EU belongs have boosted Spanish foreign trade more than 100%, a percentage higher than that of the surrounding countries. "There are winners and losers, but overall we win," says professor José Antonio Martínez, one of the authors of the text.

(tagsToTranslate) pact (t) canada (t) boost (t) export (t) vehicle (t) Spanish (t) 236% (t) two (t) year (t) country (t) North American (t) grow (t) 20% (t) import (t) up (t) 34%

Source link