Canada's International Trade Minister has been promoting his country's pending
free trade agreement with the European Union (EU) by stressing that it will create
more jobs and prosperity on both sides of the Atlantic.
Making a pro-trade visit to France and Germany, Ed Fast, the Minister of International
Trade and Minister for the Asia-Pacific Gateway, met with Canadian and German
business leaders in Berlin to discuss the commitment to an ambitious trade agreement.
During his trip, Fast will also assist Canadian companies seeking new economic
opportunities in Europe and highlight what makes Canada a leading investment
destination of choice.
Commenting on the ongoing FTA negotiations, Fast stressed that: “Our
government continues to focus on jobs and economic recovery, and the potential
benefits of a Canada-EU trade are enormous. With trade accounting for over 60%
of Canada’s annual GDP and with one in five Canadian jobs linked to trade,
a Canada-EU trade agreement would create almost 80,000 new jobs and provide
the equivalent of a CAD1,000-boost to the annual income of the average Canadian
family.”
The EU is Canada’s second-largest partner in trade and investment and
a key partner in innovation. Two-way merchandise trade reached CAD82.5bn (USD80.4bn)
in 2010, up from CAD75bn the previous year. In 2009, Canada was the EU’s
fourth-largest source of foreign direct investment, and at the end of last year,
Canadian direct investment in the EU totalled more than CAD145bn.
Negotiations toward an FTA began in October, 2009, and nine rounds of talks
have been held since. According to the Canadian government, significant progress
has been achieved across the board, including in the core market access areas
of goods, services, investment and government procurement. A 2008 study, jointly
published by Canada and the EU, argued that a stronger economic partnership
could boost Canadian gross domestic product by CAD12bn annually and two-way
trade by more than 20%.
Fast also met with business leaders from German companies with investments
in Canada to highlight how the country's low tax rates make it an ideal location
for new investment. He said that: "Of all G-7 countries, Canada offers
investors the lowest overall tax rate on new business investments and is on
track to having one of the lowest corporate tax rates."
In 2012, Canada is expected to have a combined federal-provincial statutory
general corporate income tax rate of 26%, lower than most other G-7 countries
and more than 13% less than that of the US. In addition, Canada is the first
in the G-20 to make itself a tariff-free zone for manufacturers by eliminating
tariffs on manufacturing inputs, machinery and equipment.
Germany is the 10th-largest foreign investor in Canada, with foreign direct
investment totalling CAD10.2bn in 2010. “Our strong economic fundamentals
and investment advantages clearly show why leading German companies are bringing
prosperity-boosting investment to Canada. I am urging other business leaders
to do the same," Fast concluded.
LAWANDTAX-NEWS.COM
