Q: What is the CETA agreement and how does it help Canadian businesses? A: The Comprehensive Economic and Trade Agreement (CETA) is a free-trade pact between Canada and the EU. Since its provisional application in September 2017, it has eliminated tariffs on 98% of tariff lines, allowing Canadian businesses to export goods to the EU duty-free. It also covers services, investment, and government procurement. Expert Tip: While 98% of tariffs are gone, the remaining 2% affects sensitive sectors. Contact us to verify if your specific product code falls under the duty-free category.

Q: How does Brexit affect trade between Canada and the UK? A: Following the UK's departure from the EU, trade is governed by the Canada-UK Trade Continuity Agreement (TCA), which entered into force on April 1, 2021. The TCA largely replicates CETA provisions, preserving duty-free access for 98% of Canadian products and maintaining preferential market access similar to pre-Brexit conditions.

Q: Is CETA fully ratified and permanent? A: CETA is currently "provisionally applied," meaning the commercial aspects (tariffs and quotas) are active and legally binding. However, full implementation requires ratification by all 27 EU member states. As of late 2023, 17 states have ratified it. For most exporters, the provisional status grants full trading benefits immediately.

Q: Do I have to pay customs duties on exports to Europe or the UK? A: Under CETA and the UK TCA, 98% of Canadian goods enter duty-free. However, this is not automatic. You must claim preferential tariff treatment by providing a specific origin declaration on your commercial invoice. Without this declaration, your importer will pay standard duties. Why this matters: Errors in declaration can lead to retroactive penalties. We help streamline your trade compliance to ensure you never overpay.

Q: How do I prove my products are "Canadian" (Rules of Origin)? A: To qualify for duty-free status, goods must meet specific Rules of Origin (RoO). This often requires that a certain percentage of the product’s value is produced in Canada, or that the product has undergone a "sufficient transformation" here. You must include your Business Number in the origin declaration. Need help? Complex supply chains (e.g., using parts from the US or China) make RoO calculations difficult. HT Markets & Metrics can audit your supply chain to confirm eligibility.

Q: Do Canadian exporters have to pay VAT in the EU or UK? A: Yes. CETA and the TCA do not exempt goods from Value Added Tax (VAT). VAT is charged at the border (ranging from 15% to 25% depending on the country). While this is usually recoverable by the importer, it impacts cash flow and pricing strategies.

Q: Do I need a CE Mark to sell in Europe? A: Yes, for many products. The CE Mark is mandatory for 25 specific groups, including electronics, toys, machinery, and medical devices. It certifies compliance with EU health, safety, and environmental standards. Selling these products without a CE Mark is illegal in the EU.

Q: What is REACH and does it apply to Canadian chemicals? A: REACH is the EU’s strict regulation on chemical substances. If you export more than one tonne of chemical substances per year (even if they are ingredients in other products), you must register with the European Chemicals Agency (ECHA). Canadian companies without an EU presence often need an "Only Representative" in the EU to handle this.

Q: How does GDPR apply to Canadian companies? A: If you sell goods to EU residents or track their online behavior (cookies, analytics), you must comply with the General Data Protection Regulation (GDPR). This applies even if you have no physical office in Europe. Non-compliance can result in massive fines.

Q: Can Canadian companies bid on government contracts in Europe? A: Yes. CETA grants Canadian businesses access to the EU’s $1.9 trillion government procurement market, including contracts for utilities, regional governments, and public transport. This is a massive, underutilized opportunity for Canadian service providers.

Q: What are the best growth sectors for exporting to the UK? A: Current data highlights high demand in the UK for Clean Technology (wastewater, filtration), Hydrogen (electrolyzers, storage), and Nuclear Energy (Small Modular Reactors). The UK also has a strategic need for critical minerals for industrial and military applications.

Q: Why are my profit margins lower than expected on international sales? A: International trade involves hidden costs: logistics volatility, VAT cash flow gaps, currency fluctuations, and compliance administration. How we help: At HT Markets & Metrics, we don't just look at sales; we integrate Finance, Logistics, and Strategy. We build "bank-ready" financial models to forecast your true net margin before you ship a single pallet.

Q: Are there government grants to help me start exporting? A: Yes, Canada offers several funding programs (like CanExport) to help cover the costs of marketing, travel, and consulting for new markets. Take Action: Securing these grants requires a detailed market entry plan. Book a consultation with us to create a roadmap that maximizes your chances of funding approval.