Canada and the European Union new free trade agreement Essay

Canada and the European Union new free trade agreement - Essay Example Canada and the European Union new free trade agreement Canada as a country is renowned for its skillful ideas in research, innovation and invention and production of different types of manufactured products. These products include industrial and machinery, rail products, agricultural and medical equipments. The Canada’s gross domestic product was $42.7 billion resulting from employing approximately 418, 000 Canadian individuals in the manufacturing industry. On the other hand, the European Union benefits from Canada on products such as aero products, rail products and agricultural goods, and medical products, scientific and precision equipments. However, the trade between Canada and European Union is affected by 22 percent tariff on the goods exported and imported. This has been affecting the trade making the European Union to get goods at costly prices (Canada). Upon the completion of the agreement, the Canada-EU trade agreement will work to reduce and remove most of the existing EU tariffs on the manufactured goods, which include electrical parts and equipments and medical equipments. The reduction of physical barriers on the market will help to increase market access for exports and imports. Additionally, the agreement gives opportunities of helping Canada and EU identify different ways and steps of either preventing imposition of non-tariff barriers or direct deal with them when they arise.