CETA is a trade agreement between Canada and all EU countries, including the Netherlands. CETA reduces tariffs and facilitates trade between Canada and the EU. TRANQUIL MUSIC (Title on screen: Together, we are building a stronger future. At the Canada-Netherlands trade event, a small Dutch flag and a small Canadian flag are on a table.) SUSAN ORMISTON: CETA took a long time to negotiate, but it has been around for a year now, and according to some reports, it has been very successful and has led to new trade relationships. Not all European members have ratified it yet, but with all the discussions on tariffs south of the border, we see with CETA, if I am right, that 98% of tariffs have been abolished. What a feat. Prime Minister, why is CETA so important for the Netherlands? PRIME MINISTER RUTTE: Thank you very much for that very good question. Three reasons. First, because, as you said, it has tripled. Trade is increasing, it has already tripled in the last ten years, but we are now seeing a further increase in trade with the Netherlands, but also from the Netherlands to Canada, and we are seeing this for many European countries. That`s the number one reason. The second reason is that what we are doing with CETA, we are combining it freely and fairly, so it is really a modern foreign trade agreement. Reason number three is that this is an example of multilateralism.
Let them have an EU of 28 member states, let Canada be one of the largest economies in the world, a member of the G7, let us still be able to work together. JULIE ALLEN: Trade has increased. It`s about 24% on average, in both directions, so it`s up. More and more companies are becoming aware of CETA, but many don`t know exactly what`s in it for me. And that is where the House can play a role, where the trade commissioners from both embassies can play a role. SABINE NÖLKE: I think we really have three roles in our trade commissioner department: information, promotion and customer service. And what we do is we provide information for any company that wants to expand into the Netherlands, or for any Dutch company that wants to go to Canada. Very convenient things sector by sector or on a location basis. You can get this information on the Internet, but you can also call us by phone. And then we offer customer service. We have a soft landing program on both sides of the Atlantic for small businesses looking to explore the market.
They can set up for three months, and we help them build their networks and so on. So it`s very convenient. WILDE TIES: For almost a hundred years, we have been designing, producing and selling beautifully designed and sustainably manufactured household products. We are proud to say that we do this for the vast majority of our products in the Netherlands and that we are trying to grow our business in Canada. First of all, I would like to hear from Mr Ties De Wilde from Brabantia. What experiences have you had with CETA so far? Well, we are in the domestic industry, which is a very competitive market that is very price-oriented. In Canada, we are dealing with the largest retailers so far, and there it is very much based on quality products, but also on price. And the CETE agreement has already given us the opportunity to expand the current business with current retailers, but it is also easier to knock on the doors of other retailers. The only challenge is that the right business decision-makers at these retailers actually need to be informed about CETA, and this is not always the case.
I understand this as a topic, in fact, when I read a little bit, that we usually need to promote more. CETA needs to be better known. I think so. I mean, in the big retailers in Canada, we see that they have a separate department for imports and regulations. These people are well aware of the benefits, but this is not necessarily transferred to business decision-makers in the right way. For Canada, of course, there is such a big neighbour, the United States, where, I think, a lot of companies here in Canada do business with the United States. I think it is quite natural, but now also to do business with 28 countries of the European Union. And there`s a market that`s twice as big as the U.S. market, so I urge you to get on with it. There are so many possibilities, but we need to work on that. I think the embassies are working on it, here and in The Hague, the Canadian embassy in The Hague, the Netherlands embassy here in Ottawa, but also the consulates general in different cities here in Canada.
The Dutch government, the Chamber of Commerce and the Dutch-Canadian Chamber of Commerce are working on this. And, of course, I can perhaps add that, from a technical point of view, Dutch companies can only benefit from these lower customs duties if they are registered in customs as certified exporters. It`s very simple. It`s a quick process, a quick gain, but you have to do it to get the most out of it. We realized that this was the key and made it a requirement to use it. So it was done immediately, and we are already doing business in Canada. So this doubling or tripling of activity has already happened for us, and we expect more growth in the future. Well, we are happy to see you, because I myself love high quality kitchen products, I do. It`s the truth. DON PAAUWE: I am very pleased that CETA has been in force for almost a year. And I have to say that it really boosted our business. We make dispensers, so beer towers, beer taps, all kinds of things, everything related to draught beer and keg equipment, and I have to say that I`m excited about CETA right now.
Another thing that has happened is that we deal with Accuflex beverage pipes, and we will be the distributor for Europe for them and will do sales marketing for them. So not only do we sell equipment in Canada, but we also get equipment from Canada, so it works for us both ways. GREG ESTON: Accuflex is a manufacturer of pipes and hoses. We manufacture the pipes that flow between well systems for Coca-Cola and Pepsi and between draught beer systems for Coors, Molson or Anheuser-Busch. For us, the European market was too many mountains to climb the longest. It was easier to look at the fruits at hand in the U.S. and maximize our potential there. But now, of course, with CETA, it has happened: of the five main obstacles I had in bringing my product to the European Union, CETA has already eliminated three.
We believe we have chosen the right partner for Canuck Beverage. And that`s a big part of what you do, because we use your skills and know-how in the markets of the European Union to allow us to distribute our products there. The biggest mountain was the rates. And if you look at the 33% increase in Canada`s trade and exports to the Netherlands, it`s clearly because of tariffs. It`s lobster, it`s salmon, it`s seafood, it`s pulp. So it`s all the things that Canadians like to send abroad that have suddenly become between 7 and 22 per cent cheaper. One of the reasons we were able to reach so many Dutch companies is that we went to the Dutch trade associations. Why is the focus on small and medium-sized enterprises? Why is this so important? OMAR ALGHABRA: Well, about ninety percent of our businesses are small and medium-sized businesses, which is the backbone of our economy.
And the healthier they are, the healthier our economy is and they have greater potential for growth. They have technologies, they have skills that we know the rest of the world can benefit from. But we believe it is untapped, and that is why there is a significant growth opportunity in this sector. REMCO DOLMAN: Spotzi is a data analysis company. For example, if you want to open a new business, we know the best place in the world to do so. We were originally a Dutch company, but four years ago we decided to move to Canada and now we have our second main office in Toronto. The reason we chose Canada is because there is a very good computer atmosphere here, and I would even compare it to Silicon Valley in San Francisco. It is about people, it is about knowledge and the CETA agreement makes it easier for us to transfer people between Europe and Canada.
And we look forward to continuing our expansion, and I think CETA will help us grow even faster here in Canada. CETA contributes to mobility. The government has done that, and again I will leave it to the parliamentary secretary, but we have created this new global skills visa process that really makes it much easier for highly skilled workers in these industries to come to work in Canada. CETA also contains provisions for professionals who can live and work in each other`s countries. CETA has lowered barriers for professionals, particularly in the digital sector you describe. And I would like to point out that earlier this year, our two countries signed memoranda of understanding with our Research Council agencies. We have also signed memoranda of understanding with our statistical authorities and we have signed memoranda of understanding with development finance agencies. So there is a particular awareness.
Can we do more? Yes. QUIET MUSIC CONTINUES (Prime Minister Rutte, Omar Alghabra and Sabine Nölke smile as they watch three men, including Greg Eston and Don Paauwe, sign a document. They pose for a photo while Rutte, Alghabra and Nölke applaud.) (The screen turns white with a picture of poppies at the bottom. The Dutch coat of arms, next to: Kingdom of the Netherlands. Kingdom of the Netherlands. Text on screen: Together, we are building a stronger future. Including the Logo of Canada and the Netherlands, Historical Ties, Common Future and Tekst www.netherlandsandyou.nl.) 20. Mexico is the Netherlands` 20th largest trading partner outside the EU.
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