Briefing

Two years into Canada-EU trade deal, oil companies are the big winners

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The overall trade deficit between Canada and the EU continues to increase two years after the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) came into force, according to a new study from the left-leaning Montreal-based research group Institut de recherche et d’informations socio-économiques. (The Logic)

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Talking point: One of CETA proponents’ main arguments was that the deal would allow Canadian businesses more access to the EU’s 500 million consumers. Since CETA was signed, the value of Canada’s trade balance with Europe (exports minus imports) has dropped 22 per cent—the equivalent of $323 million per month. The outlier is energy: so far in 2019, Canada is exporting more energy to Europe than it’s importing, the first time that’s happened since at least 2014. Net mineral exports are also up, but food products have taken one of the largest hits. That’s a problem for Canadian farmers, who are also facing pressure from China, which has declined to take some Canadian products amid tensions between the two countries.