More than six years ago, Canada and the European Union (EU) signed the Economic and Trade Agreement (CETA), opening up new prospects for economic and trade relations between the two regions. This agreement brought significant benefits for Quebec, but at the same time raised some challenges.
In this analysis, we will examine both the opportunities and concerns related to CETA, focusing on Quebec and the possibilities for collaboration between Italian and Canadian companies.
Opportunities in Quebec with CETA
Quebec has benefited significantly from the implementation of CETA. Its exports of goods to the EU have consistently exceeded $10 billion annually, demonstrating substantial growth. This success can be attributed in part to the reduction of trade barriers with the EU, which has allowed Quebec businesses access to a larger and more diverse market.
In addition, CETA has paved the way for new opportunities for Quebec businesses in key sectors. For example, with the EU engaging in reindustrialisation and diversification of raw material supply sources, Quebec industries such as aluminium, iron, nickel and copper have the opportunity to demonstrate their expertise in these areas. In addition, the entry into force of the ‘European Carbon Frontier Adjustment Mechanism’ will offer advantages to Quebec industries, which already have a lower carbon footprint than their European competitors.
Another area of opportunity is the European aerospace industry and its commitment to carbon neutrality. Quebec companies in this sector can collaborate with their European counterparts to develop sustainable transport solutions, paving the way for innovative partnerships.
Finally, the EU is investing in industrial relocation in microelectronics and green energy, including batteries, wind, solar, hydrogen and biofuels. This represents an opportunity for Quebec to diversify its sources of supply and open new markets for its emerging and established industries.
However, despite the opportunities, CETA has created some challenges for Quebec, particularly in the agri-food sector. Local producers often struggle to compete with the European giants that now dominate the market. This is particularly evident in the dairy sector, where the aggressive prices offered by European producers on Quebec soil put a strain on local businesses.
Opportunities for Italian and Canadian Companies under CETA
The opportunities for collaboration between Italian and Canadian companies in the context of CETA are promising. Both countries boast diversified industrial sectors and high-level skills, which can be complementary. For instance, Italian companies are renowned for their excellence in manufacturing, from fashion to automotive, while Canada offers natural resources, technology and innovation.
This complementarity offers room for significant synergies between companies in the two countries. Collaboration can enable the exchange of technology, know-how and access to new markets. CETA creates a more favourable environment for companies seeking to expand abroad, thanks to lower trade barriers and easier access to European markets.
Italian companies can find in Canada a reliable partner for the distribution of their products and access to a growing North American market. At the same time, Canadian companies can benefit from Italian expertise in key sectors such as design, fashion and automotive component manufacturing.
In addition, Canada offers unique opportunities in the natural resources sector, from mining to energy, which may be of interest to Italian companies interested in investing in sustainable development projects.
Concretely, CETA has opened the door to a number of opportunities and challenges for both Quebec and Italian and Canadian businesses. Quebec can take full advantage of the opportunities for collaboration and economic growth offered by this agreement, working in synergy with European companies. At the same time, Italian and Canadian companies can develop fruitful partnerships and take advantage of CETA to access new markets and stimulate growth. The key to success in this dynamic environment is the ability to adapt, innovate and take full advantage of the opportunities offered by this trade agreement.