October 23, 2013

Canada and the EU have signed a historic free-trade agreement after four years of negotiations, thus paving the way for significant elimination of EU tariffs on Canadian seafood imports.

The commercial agreement will benefit Canadians who export their products to the EU, to improve their production revenue. Moreover, through this agreement, Canada will have preferential market access to 500 million EU nationals, mainly in the seafood and fish sectors among others. The EU market is expected to yield US$16.5 trillion in annual economic activity.

The elimination of about 98% of EU tariffs will mean fish and seafood will be duty-free after seven years. Furthermore, tariffs will be eliminated on live and frozen lobster, frozen scallops and peeled shrimp products, ranging from 6% to 20%, according to a report.

The agreement also sets that in a three-year term, Canada will have to phase off the minimum processing requirements on exports to the EU.

British Columbia Seafood Alliance, which gathers firms related to fisheries, shellfish processors, traders and exporters, has welcomed the announcement stating that it is good news for the seafood sector.

The association believes that there is a growing tendency to consume more seafood in the EU and customers are ready to pay high prices for British Columbia's canned salmon, which the province has been exporting for over 100 years. However, high tariffs have caused difficulties to increase exports.