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Supporting EU businesses in Canada
CETA FOR EU SERVICES SUPPLIERS
A Comprehensive Report to the Canadian Services Market for European Union Companies
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TABLE OF CONTENTS
LIST OF ACRONYMS .................................................................................................................................................................................................................................4EXECUTIVE SUMMARY ............................................................................................................................................................................................................................5
Why this Report? .............................................................................................................................................................................................................................5Disclaimer...........................................................................................................................................................................................................................................5
1. INTRODUCTION .............................................................................................................................................................. 61.1. Cross-Border Trade in Services ................................................................................................................................................................................................61.2. Investment ..........................................................................................................................................................................................................................................71.3. The Canadian Political System ................................................................................................................................................................................................81.4. Consumer Rights in Canada ......................................................................................................................................................................................................81.5. Use of Personal Information .....................................................................................................................................................................................................81.6. Federal Consumer Protection Laws ......................................................................................................................................................................................91.7. Mutual Recognition of Professional Qualifications .......................................................................................................................................................91.8. Temporary Entry of Natural Persons into Canada ........................................................................................................................................................9
A) Entry Requirements for Canada ....................................................................................................................................................................................10B) Categories .................................................................................................................................................................................................................................10C) Next Steps .................................................................................................................................................................................................................................10
1.9. Doing Business in Canada .......................................................................................................................................................................................................11A) Taxes in Canada .....................................................................................................................................................................................................................11B) Canadian Intellectual Property Office ........................................................................................................................................................................12C) Legal System ...........................................................................................................................................................................................................................12D) Language and Culture ........................................................................................................................................................................................................12E) Setting up a Company in Canada .................................................................................................................................................................................12F) Standards ...................................................................................................................................................................................................................................13
2. FINANCIAL SERVICES .................................................................................................................................................142.1. The Banking Sector ......................................................................................................................................................................................................................142.2. CETA Chapter 13 ...........................................................................................................................................................................................................................162.3. Case Studies ....................................................................................................................................................................................................................................17
▶ Caixabank ........................................................................................................................................................................................................................................17 ▶ Ortec Finance.................................................................................................................................................................................................................................17
Q&A ...............................................................................................................................................................................................................................................................182.4. Canadian Legislation and Regulation ................................................................................................................................................................................182.5. CETA Reservations Related to Financial Services .......................................................................................................................................................192.6. Relevant regulatory authorities and trade associations ........................................................................................................................................192.7. Certifications and Licenses .....................................................................................................................................................................................................20
3. INTERNATIONAL MARITIME TRANSPORT SERVICES .........................................................................................213.1. The Canadian Port System ......................................................................................................................................................................................................223.2. Industry Structure ........................................................................................................................................................................................................................223.3. Key Policy and Regulatory Initiatives ................................................................................................................................................................................233.4. Trade between the EU and Canada ....................................................................................................................................................................................233.5. CETA Chapter 14 ...........................................................................................................................................................................................................................24New routes, new opportunities ......................................................................................................................................................................................................243.6. CETA and Coasting Trade in Canada ..................................................................................................................................................................................253.7. Trade Associations .......................................................................................................................................................................................................................253.8. Case Studies ....................................................................................................................................................................................................................................25
▶ Maersk ...............................................................................................................................................................................................................................................25 ▶ CMA-CGM .........................................................................................................................................................................................................................................25
Q&A ...............................................................................................................................................................................................................................................................263.9. Canadian Legislation and Regulations .............................................................................................................................................................................263.10. Training and Certifications ....................................................................................................................................................................................................263.11. CETA Reservations ....................................................................................................................................................................................................................27
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4. TELECOMMUNICATIONS ............................................................................................................................................284.1. Service Providers in a Captive Market ..............................................................................................................................................................................284.2. Competition and Regulation ...................................................................................................................................................................................................294.3. Affordable Access .........................................................................................................................................................................................................................294.4. Retail vs. Wholesale ....................................................................................................................................................................................................................294.5. Trade Associations .......................................................................................................................................................................................................................294.6. Trade between EU and Canada ............................................................................................................................................................................................304.7. Case Studies ....................................................................................................................................................................................................................................30
▶ Ericsson .............................................................................................................................................................................................................................................30 ▶ Orange Business Services ......................................................................................................................................................................................................30
Q&A ...............................................................................................................................................................................................................................................................314.8. Canadian Legislation ..................................................................................................................................................................................................................324.9. CETA Reservations .......................................................................................................................................................................................................................32
5. ELECTRONIC COMMERCE ..........................................................................................................................................335.1. Market Size ......................................................................................................................................................................................................................................335.2. Computer and IT Related Services ......................................................................................................................................................................................335.3. Internet Penetration ....................................................................................................................................................................................................................345.4. Which Channels are Driving Growth? ................................................................................................................................................................................345.5. E-Commerce Breakdown ..........................................................................................................................................................................................................345.6. E-Commerce Customer Profile ..............................................................................................................................................................................................355.7. Purchases from Outside Canada .........................................................................................................................................................................................365.8. New Technologies ........................................................................................................................................................................................................................365.9. Big Players........................................................................................................................................................................................................................................365.10. Logistics ..........................................................................................................................................................................................................................................375.11. On-Line Payment .......................................................................................................................................................................................................................375.12. Challenges .....................................................................................................................................................................................................................................375.13. CETA Chapter 16 ........................................................................................................................................................................................................................375.14. Opportunities ...............................................................................................................................................................................................................................385.15. Trade Associations ....................................................................................................................................................................................................................385.16. Case Studies .................................................................................................................................................................................................................................38
▶ ColisExpat for Zalando and European Deliveries.......................................................................................................................................................38 ▶ Nortal .................................................................................................................................................................................................................................................39
Q&A ...............................................................................................................................................................................................................................................................405.17. Canadian Policy and Legislation .......................................................................................................................................................................................40
6. CONCLUSION ................................................................................................................................................................41
7. RESOURCES FOR EU COMPANIES ...........................................................................................................................42
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BMO Bank of Montreal
BN Business Number
CASL Canada’s Anti-Spam Legislation
CBA Canadian Bankers Association
CIRA Canadian Internet Registration Authority
CWTA Canadian Wireless Telecommunications Association
CETA Comprehensive Economic and
Trade Agreement
CFA Chartered Financial Analyst
CIBC Canadian Imperial Bank of
Commerce
CIPO Canadian Intellectual Property Office
CRA Canada Revenue Agency
CRTC Canadian Radio-Television and Telecommunications Commission
CSC Canadian Securities Course
EC European Commission
eTA Electronic Travel Authorisation
EU European Union
FDI Foreign Direct Investment
GAC Global Affairs Canada
GDPR General Data Protection Regulation
GST Goods and Services Tax
HST Harmonised Sales Tax
ICT Intra-Company Transferee
ICTS Information Communications Technology Sector
ICS Investment Court System
LMIA Labour Market Impact Assessment
NOC National Occupation Classification Code
OSFI Office of the Superintendent of Financial Institutions
OLHI OmbudService for Life and Health Insurance
PIPEDA Personal Information Protection and Electronic Documents Act
RBC Royal Bank of Canada
SAC Canadian Standards Association
SCC Standards Council of Canada
TD Toronto-Dominion Bank
TEUs Twenty-Foot Equivalent Units
ULC Underwriters Laboratories of Canada
USMCA United States-Canada-Mexico Agreement
VAC Visa Application Centre
VAT Value Added Tax
LIST OF ACRONYMS
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The EU-Canada Comprehensive and Economic Trade Agreement (CETA) is the most extensive and far-reaching EU free trade agreement to date, addressing trade in goods and services, investment, and government procurement.
CETA entered into force provisionally on September 21, 2017, opening up new markets in the EU and Canada creating a stable trading environment for the two partners.
The main benefits of CETA for EU services suppliers are:
• Improved market access to Canada’s services sectors and investment in other activities, such as manufacturing and energy markets;
• Simplified access for temporary movement of company personnel and service providers; and
• Opportunities to bid on government procurement contracts in Canada.
Canada is an excellent starting point for access to other regional markets through its free trade deals with the US and Mexico (USMCA), and other Latin American markets.
Further details and summaries of CETA are available at:
• European Commission (EC) CETA Chapter by Chapter• Global Affairs Canada (GAC) Chapter Summaries
Why this Report?
The “CETA and Services” guide aims to increase awareness of the opportunities for EU services suppliers in Canada within four key service sectors: financial services, maritime transport, telecommunications, and e-commerce. The guide is designed for EU companies engaged in, or considering, trade in services with Canada.
Disclaimer
The information mentioned in this guide is publicly available and was current at the time of publication. This publication is designed as a general guide and should not be used in place of professional consultation. The information should not be quoted as, or considered to be, a legal authority. It may become obsolete, in whole or in part at any time without notice, depending on the evolution of the political and legal situation between the EU and Canada.
Executive Summary
Note: All dollar figures are cited in Canadian dollars, unless otherwise noted. All euros figures extracted from Canadian sources have been converted from Canadian dollars using InforEuro exchange rate system on July 2020.
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The EU and Canada enjoy a strong bilateral relationship that extends to many areas beyond trade. Canada’s relationship with the EU is the oldest formal relationship with any industrialised country dating back to 1959.1 With many cultural, political, judicial, and linguistic elements in common, the EU has always been an important partner for Canada. With the implementation of CETA, this relationship continues to grow and find new areas where partnerships between both regions can flourish.
In terms of trade, the total value between the two regions in 2018 was €72.3 billion in goods2 and €40.6 billion in services. The EU had a trade surplus with Canada, for both goods and services, of €19.6 billion in 2017, and €21.2 billion in 2018 (an increase of 8.2%).3
1.1. Cross-Border Trade in Services
Services are a major part of the global economy, generating more than two thirds of global gross domestic product (GDP), attracting over three-quarters of foreign direct investment in advanced economies, employing the most workers, and creating most new jobs globally.4
International trade in services covers a wide and complex array of transactions on products that are generally intangible in nature, as distinct from physical goods. The benefits of CETA for EU suppliers trading in services include:
- Strengthening their ability to access the services sector in Canada;
- Improving the structure for temporary movement of company personnel and service providers between the EU and Canada; and
- Mutual recognition of each other’s professional qualifications can be negotiated, thereby facilitating the supply of services in each other’s jurisdictions.
Increased market access is vital for companies selling abroad, and the improved conditions for temporary movement are especially important for those that provide after-market service. As a result of CETA, EU suppliers will now have more opportunities to provide services to the Canadian market.
Figure 1. EU-Canada Trade in Services (€B) from 2016 to 2018
21,8
22,8
24,8
12,2
13,6
15,6
9,5
9,2
9,2
0 5 10 15 20 25 30
2016
2017
2018
Balance Imports Exports
Source: European Commission, Canada
1 Government of Canada, Canada and the European Union - https://www.international.gc.ca/world-monde/international_relations-relations_internationales/eu-ue/index.aspx?lang=eng 2 European Commission, Canada - https://ec.europa.eu/trade/policy/countries-and-regions/countries/canada/3 European Commission, Canada - https://webgate.ec.europa.eu/isdb_results/factsheets/country/overview_canada_en.pdf4 Organisation for Economic Cooperation and Development, Services Trade in the Global Economy - https://www.oecd.org/trade/topics/services-trade/
1. INTRODUCTION
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Between 2016-2018, there has been a steady increase in trade in the export of services to Canada, with a corresponding significant surplus. In 2018, the EU exported €24.9 billion in services to Canada, while importing €15.7 billion, resulting in a trade surplus of €9.2 billion for the EU.5
The major contributing services sectors are travel (24%), transport (20%), telecommunications (10%) and financial services (6.7%).
1.2. Investment
In recognition of the distinction between trade in goods/cross-border provision of services and investment, CETA contains a dedicated chapter to facilitate increased investment between Canada and the EU.
Chapter 8 of CETA gives investors greater certainty, stability, transparency and protection for their investments, and secures access to each other’s markets.
Canada’s commitments cover investment in most services sectors and in non-services sectors such as agriculture, mining, manufacturing and energy markets.6
A recourse for investment protection is available through the Investment Court System (ICS) mechanism. The ICS enables investors to enforce their rights against the host state of their investment, before an international investment Court. All hearings will be open to the public.
This Court will be:
- Permanent;- Not based on temporary panels;- Composed of professional and independent judges appointed by the EU and Canada; and- Based on a two-tier system including a Tribunal and an Appellate Tribunal.
A single set of rules will replace the eight existing bilateral investment agreements between EU Member States and Canada, as soon as CETA is fully ratified.
The investment climate will offer more certainty to investors by: 7
- Not discriminating between domestic and foreign investors;- Not imposing new restrictions on foreign shareholdings.
Investment represents a substantial portion of the Canada-EU economic relationship. Foreign direct investment stocks by Canada into the EU for 2018 were €397.3 billion while outward stocks from the EU to Canada totalled €392.2 billion providing a balance of € -5.1 billion.8
Figure 2. EU-Canada Foreign Direct Investment Stocks (€B)
316,1
303,7
392,2
312,2
313,4
397,3
3,9
-9,7
-5,1
-50 0 50 100 150 200 250 300 350 400 450
2016
2017
2018
Balance Inward FDI Stocks Outward FDI Stocks
Source: European Commission, Canada
5 European Commission, Canada - https://ec.europa.eu/eurostat/web/international-trade-in-services/data/database6 Global Affairs Canada, CETA Chapter Summaries - www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/ceta-aecg/chapter_summary-resume_chapitre.aspx?lang=eng7 European Commission, CETA Explained, How Will CETA Protect Investments - https://ec.europa.eu/trade/policy/in-focus/ceta/ceta-explained/8 European Commission, Canada - https://webgate.ec.europa.eu/isdb_results/factsheets/country/overview_canada_en.pdf
316,1
303,7
392,2
312,2
313,4
397,3
3,9
-9,7
-5,1
-50 0 50 100 150 200 250 300 350 400 450
2016
2017
2018
Balance Inward FDI Stocks Outward FDI Stocks
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1.3. The Canadian Political System
In Canada, there are two orders of government: the federal government and provincial and territorial governments. Comprehensive trade agreements like CETA overlap with the jurisdiction of both levels of government. This is an important consideration for companies seeking to understand the Canadian political landscape.
The federal government is based in Ottawa, Ontario, the national capital city. There are 10 provinces and three territories, and, accordingly, 10 provincial governments and three territorial governments - each based in the various provincial and territorial capitals.
1.4. Consumer Rights in Canada
EU companies providing services to consumers and businesses in Canada will need to know how their particular service offering is regulated. There are laws and agencies across Canada that provide consumers with assistance and support if they have a dispute with your business.
Responsibility for consumer rights in Canada is shared between the provincial and federal governments, as well as non-government organisations. For example, offering of travel related services may have provincial regulations such as all-in pricing that is required to be displayed in any advertising depending on the jurisdiction in which it is offered.9
The federal government regulates the safety of food and consumer products, product packaging and labelling, anti-competitive practices, and privacy complaints. The federal government also oversees consumer transactions related to federally regulated financial institutions (including banks, federally regulated retail associations and trust and loan companies).
For online transactions, provincial regulation protects consumers. Provinces and territories also legislate the licensing of businesses dealing with consumers, like credit reporting and collection agencies.
Other consumer complaints that fall under provincial/territorial jurisdiction include issues relating to buying goods and services, contracts, and purchase/maintenance/repair of motor vehicles.
1.5. Use of Personal Information
The federal government and some provinces have regulated the private sector’s use of personal information. Federal privacy legislation includes The Privacy Act and The Personal Information Protection and Electronic Documents Act (PIPEDA).10 PIPEDA applies to private-sector organisations across Canada that collect, use or disclose personal information in the course of a commercial activity. All businesses that operate in Canada and handle personal information that crosses provincial or national borders are subject to PIPEDA, regardless of the province or territory in which they are based.11 PIPEDA applies to both the handling of personal information by organisations operating in Canada (i.e., with a tangible presence in Canada) and the collection, use and disclosure of personal information relating to individuals who are resident. Accordingly, PIPEDA generally applies to organisations outside Canada that collect and use the personal information of Canadian residents.
EU suppliers must be aware of the various PIPEDA implications when operating in Canada, as well as certain provincial/territorial requirements.
Canada’s Anti-Spam Legislation (CASL) protects business and consumers from the misuse of digital technology including spam and other electronic threats.12
The EU’s General Data Protection Regulation (GDPR) is applicable to Canadian companies holding or processing data on European customers, irrespective of where the data processing occurs.
9 For example, see Ontario Government Consumer Protection Laws regarding travel - https://www.ontario.ca/page/booking-trip-your-rights 10 Personal Information Protection and Electronic Documents Act (S.C. 2000, c. 5) - https://laws-lois.justice.gc.ca/ENG/ACTS/P-8.6/index.html 11 Office of the Privacy Commissioner of Canada, The Personal Information Protection and Electronic Documents Act - https://www.priv.gc.ca/en/privacy-topics/privacy-laws-in-canada/the-personal-information-protection-and-electronic-documents-act-pipeda/pipeda_brief/#_h1-212 Canada’s Anti-Spam Legislation - www.fightspam.gc.ca
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1.6. Federal Consumer Protection Laws
Canada Consumer Product Safety Act (CCPSA) protects the public by addressing or preventing dangers to human health or safety that are posed by consumer products in Canada. The Quick Reference Guide provides a plain language guide of everything contained in the act.
The Competition Act governs most business practices in Canada with the purpose of maintaining and encouraging competition in Canada;
Canadian Radio-Television and Telecommunications Commission (CRTC): The Wireless Code of Conduct explains consumers’ rights and rules that providers in that sector must follow.
Financial Consumer Agency of Canada (FCAC) ensures that federally regulated financial entities comply with consumer protection measures, promotes financial education and raises consumers’ awareness of their rights and responsibilities in financial services.
OmbudService for Life and Health Insurance (OLHI) provides consumers with access to impartial and cost-free resolutions of life and health insurance issues.
1.7. Mutual Recognition of Professional Qualifications
Chapter 11 of CETA creates a framework for recognising EU qualifications in Canada and vice versa.
Professionals (such as accountants, architects, engineers, and lawyers) on both sides of the Atlantic may be able to have their qualifications recognised in each other’s geographic territory under certain conditions.
The professional associations and regulatory bodies play an important role in the preparation of mutual recognition agreements facilitating the recognition of professional qualifications. These associations in both Canada and the EU may prepare and submit joint recommendations to the Joint Committee on Mutual Recognition of Professional Qualifications, established under CETA. This Committee may then follow up to the joint recommendation and decide to adopt mutual recognition agreements. A list of the relevant regulatory bodies in Canada that oversee the architectural, legal, engineering and accounting professions (federal, provincial, territorial) is available in Table 2 at the end of this guide.
EU suppliers should contact their professional association for an update on any mutual recognition agreements between the EU and Canada. Even without mutual recognition agreements, recognition of qualifications may be granted on a case-by-case basis by the relevant authorities.
1.8. Temporary Entry of Natural Persons into Canada
Chapter 10 of CETA reflects the reciprocal objective between the EU and Canada to enable trade in services and investment by permitting the temporary entry and stay of natural persons for business purposes in each other’s territory (i.e. key personnel, contractual service suppliers, independent professionals or short-term business visitors, who are citizens of the EU and/or Canada). It should be noted that for key personnel, chapter 10 of CETA (GATS mode 4) is relevant for all EU companies established or seeking to establish in Canada, not only services suppliers.
The key benefits to EU suppliers are enhanced opportunities and reduced delays in placing temporary staff in Canada and being able to react quickly to expansion opportunities.
Many service suppliers, notably intra-corporate transferees, may no longer need a Labour Market Impact Assessment (LMIA) to be able to be employed by an EU subsidiary, whilst certain contract service suppliers and independent professionals may also not require an LMIA to supply their services on a temporary basis in Canada.
The LMIA requires that a potential employer in Canada undergo a lengthy recruitment process before employing a foreign worker. CETA facilitates this process by exempting some EU professions from an LMIA, making it easier to enter Canada for business purposes. These LMIA-exempt permits are issued by the International Mobility Program (IMP).
Under the International Mobility Program (IMP), employers in Canada may hire foreign workers on a temporary work permit without needing to obtain a Labour Market Impact Assessment (LMIA). CETA provides a number of opportunities for EU service suppliers to benefit from this.13
13 International Mobility Program, Labour Market Impact Assessment (LMIA) exemption codes - https://www.canada.ca/en/immigration-refugees-cit-izenship/corporate/publications-manuals/operational-bulletins-manuals/temporary-residents/foreign-workers/exemption-codes.html
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A) Entry Requirements for Canada
You will need a valid passport and an Electronic Travel Authorisation (eTA) before travelling to Canada, if you are a visa exempt foreign national.
The government of Canada provides additional information on both these items. See Visa exempt foreign nationals to see if you are exempt. Find out more about the eTA by visiting the Electronic Travel Authorisation website.
B) Categories
EU professionals may be eligible for simplified access to the Canadian market in the following four instances:
A) Business Visitors are eligible for short-term entry, without a work permit or LMIA, up to 90 days in any six-month period:
• To establish a business enterprise;• To perform a permissible activity (like meetings, marketing research, trade fairs, tourism, and translation), but not to sell any
products/services to the general public, nor receive remuneration from a Canadian source.
B) Intra-Company Transferees (ICTs) employed with an EU enterprise for at least one year, and temporarily transferred to a Canadian subsidiary after operation:
• Senior Personnel (three-year work permit and 18-month maximum extension possible);• Specialist (same as above);• Graduate Trainee (one-year work permit with no extensions possible).
C) Investors are eligible for short-term entry without an LMIA, if they are:
• Involved in an executive capacity in the establishment or operation of an investment in Canada;• Either those persons or their employer have committed previously, or are currently committing, a substantial amount of capital
for such investment. CETA does not set a threshold for a “substantial amount of capital”;
Under this category, there is a maximum of one-year LMIA-exempt entry and temporary stay, with possible extensions.
D) Contractual Service Suppliers and Independent Professionals may be eligible for entry without an LMIA, if they meet the following general criteria:
• Citizen of EU member states;• Maximum one-year contract;• Service is covered by Canada’s National Occupation Classification (NOC) Code;• University degree or qualifications.
Additionally, specific criteria for Contractual Services Suppliers include length of experience in sector of activity (at least three years) and with the EU enterprise (at least one year). The EU enterprise cannot have a Canadian location.
Specific criteria for Independent Professionals include that they are self-employed with at least six years’ experience.
E) Spouses of ICTs are eligible for an open work permit for the same duration as their spouse’s work permit.
C) Next Steps
1. Determine applicable category and eligibility, and whether an LMIA is required.2. Seek specialist guidance from your company’s HR department and/or an immigration lawyer.3. Applications can be made at a Canadian Port of Entry (POE), which is an entry port along the Canadian border (e.g. the first
international airport where an EU services’ supplier will enter Canada).4. Applications can also be submitted, prior to travel, at a Visa Application Centre (VAC).
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1.9. Doing Business in Canada
Canada is recognised as one of the leading trading nations in the world and has been a full participant in the effort to reduce global trade barriers. Canada ranks 23rd on the World Bank’s Ease of Doing Business Report for 2020.14 Some of the factors assessed include the ease of starting a business, trading across borders, enforcing contracts, paying taxes and employing workers.
This section is intended as a short introduction, and highlights some of the legal, immigration, and taxation aspects of the Canadian market. While this section will help guide EU suppliers in various business requirements when operating in or selling to Canada, they should seek additional advice and consult the laws and regulations that directly affect their service offering.15
A) Taxes in Canada
Canada Revenue Agency (CRA)
The CRA is largely responsible for taxation in Canada. This responsibility is shared with the territories and provinces.
1. International Tax
For International Tax and Non-Resident Inquiries, and Non-Resident Corporations and Corporation Accounts:
Tel: +1 613 940 8497Hours of Telephone Service: 9 am to 6 pm (Eastern time) from Monday to Friday
2. Non-Resident GST/HST Enquiries
Canadian contact details for non-resident GST/HST enquiries are provided at the website above for International Tax enquiries.
Canada’s good and services tax (GST) is 5% for most Canadian provinces.
The harmonised sales tax (HST) is a consumption tax, used in provinces where the GST and the regional provincial sales tax (PST) have been combined into one tax. Alberta is the only province without a PST. None of the three territories are authorised to charge PST.16 Outside of Alberta and the three territories, the total sales tax rate on most goods or services (GST+PST = HST) is 11-15%.
3. VAT
VAT is not charged on exports to countries outside of the EU. You will need to provide evidence that the goods/services were exported to a country outside of the EU.
See VAT Rules and Rates for further information.
4. Withholding Tax
A Withholding Tax is an income tax to be paid to the CRA by the payer of the income, rather than by the recipient of the income. The tax is withheld or deducted from the income due to the recipient.
It is recommended that EU-based companies and individuals seek professional guidance to determine if they are subject to a withholding tax in Canada.
5. Company and Corporate Tax
The basic federal corporate tax rate is 38% of taxable income.
Provinces and territories operate a dual tax system, and can set their income tax rate17, at a lower rate (for federal small businesses) and higher rate (to all other income).
14 The World Bank Group, Doing Business 2020, Economy Profile Canada - https://www.doingbusiness.org/content/dam/doingBusiness/country/c/canada/CAN.pdf 15 EU companies may wish to visit some Canadian resource compendiums such as Stikeman Elliott’s Doing Business in Canada. - https://www.stike-man.com/en-ca/kh/guides/Doing-Business-in-Canada 16 Retail Council of Canada, Sales Tax Rates by Province - https://www.retailcouncil.org/resources/quick-facts/sales-tax-rates-by-province/ 17 Canada Revenue Agency - www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations/provincial-territorial-corporation-tax/dual-tax-rates.html
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B) Canadian Intellectual Property Office
The Canadian Intellectual Property Office (CIPO) is the patent, trademark, and copyright administration body of Canada. Contact information is:
Address: Place du Portage I, 50 Victoria Street, Room C-114, Gatineau, Québec K1A 0C9Email: [email protected]: (+001) 819 934 0544
C) Legal System
The basis for law in nine provinces and three territories is English common law. French civil law is the basis of law in Québec.
The Province of Québec requires that a business operating in that province uses a French, as well as an English, version of its name.
D) Language and Culture
Canada is an officially bilingual country with English and French being legal equivalents. French is spoken by the majority of the population in Québec, while English is spoken by the majority in most other jurisdictions.
Under provincial law, French is the language of business in Québec. English is widely used outside the province of Québec, with pockets of French speaking areas particularly in New Brunswick and Ontario.
You may need an interpreter when doing business in Québec, and marketing material will need to be presented in both French and English.
French is spoken as a minority language throughout Canada.
E) Setting up a Company in Canada
Establishing a Business in Canada: For information on immigration, taxation, laws and regulation, federal and regional organisations, and investing in Canada.
Contact a representative of Invest in Canada at your country’s Canadian embassy in the EU, for guidance on setting up operations in Canada.
Registering a Business in Canada: EU companies may need to register with the government before operating their business in Canada.
Business types include corporation (federal/provincial), sole proprietorship, partnership or co-operative. Contact a lawyer or accountant for advice on which option bests suits your business, as there are tax implications for each option.
If you opt for provincial or territorial incorporation, you must also register with the Canada Revenue Agency (CRA) for a business number.
A Business Number (BN) will be issued when registering for a GST/HST account.
Find out more about federal incoporation in Canada.
Contact details for federal regional services, business support, networks and training, in Canada, are available here.
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F) Standards
The Standard Council of Canada (SCC) oversees and implements national standards in Canada, including those for products, services, and processes.
Canada has four accredited standards organisations:
· Canadian Standards Association (CSA) · Underwriter Laboratories of Canada (ULC) · Canadian General Standards Boards (CGSB)· Bureau de normalisation du Québec (BNQ)
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Canada has one of the strongest financial services sectors globally, made up of banks, trust and loan companies, insurance companies, credit unions, securities dealers, finance and leasing companies, pension fund managers, mutual fund companies, and independent insurance agents and brokers. Because of its size and stability, it offers some excellent opportunities for EU companies to grow.
Canada withstood the financial crisis in 2007-2008 better than most countries partly thanks to its stricter regulations and supervision. Financial services have remained a core element of Canada’s economy as evidenced by the size of the sector.
In 2018, financial services accounted for 6.7% or €88 billions of Canada’s €1.32 trillion GDP18 with over 830,000 jobs in this sector. By comparison, financial services represented about 4.7% (€679 billion) of the EU’s GDP (€14.19 trillion) in 2018.19
Toronto is Canada’s financial services capital and the second largest financial sector in North America after New York.20 It accounts for one-third of all employment countrywide in that sector.21 It has the largest fintech ecosystem in Canada, with 43% of all fintechs (194 companies, 19 venture capital firms, and 20 incubators).22
Almost half of Canada’s stock of outward foreign direct investment (FDI) is in the financial services sector (at €370 billion)23, with Canada becoming a large and growing net exporter (ratio of 2 to 1) of financial services capital. Much of this is due to overseas infrastructure investments by Canadian sovereign wealth funds.
2.1. The Banking Sector
The banking sector includes domestic banks, foreign bank subsidiaries, full-service foreign bank branches and foreign bank lending branches operating in Canada. Banks in Canada operate as Schedule I, II or III as defined in the Bank Act.
‘Schedule I’ banks are domestic banks that can accept deposits and are not subsidiaries of a foreign bank. They cannot be owned by non-residents (but can have foreign shareholders). They are authorised to offer the full suite of retail banking services but face legislative restrictions in insurance and car leasing.
‘Schedule I’ banks include the “Big Five”, the name given to the five largest banks that dominate the banking sector in Canada: Bank of Montreal (BMO), Bank of Nova Scotia (Scotiabank), Canadian Imperial Bank of Commerce (CIBC), Royal Bank of Canada (RBC), and Toronto-Dominion Bank (TD). The “big five” hold approximately 89% of the banking market share in Canada.24
Other large Canadian banks include: National Bank of Canada, Laurentian Bank of Canada and Canadian Western Bank.
Schedule I banks (and their subsidiaries) control almost 90% of all financial transactions in Canada. In 2017, the largest eight Canadian banks (Big 5 plus Canadian Western Bank, Laurentian Bank and National Bank) managed €3.28 trillion ($4.82 trillion) in Canadian assets.25
Foreign-owned banks are able to establish themselves in Canada as a ‘Schedule II’ bank or a ‘Schedule III’ bank. In terms of retail banking service provision, there is virtually no difference between Schedule I and II banks. Schedule II banks can accept deposits and are subsidiaries incorporated under Canadian law of foreign-owned banks. One EU bank, Société Générale (SG),26 operates as a Schedule II bank in Canada.
18 Statistics Canada, Gross Domestic roduct, May 2019 www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610043402 19 Eurostat, European Union https://ec.europa.eu/eurostat/web/products-datasets/product?code=nama_10_a1020 Toronto Finance International, February 2020 https://tfi.ca/toronto-financial-centre/toronto-financial-centre 21 Ibid. 22 Toronto Finance International 2019 Report https://tfi.ca/files/common/BuildingTheTorontoRegionIntoAGlobalFintechLeader_UPD2019_FINAL_V6.pdf23 Conference Board of Canada, “Toronto on the Global Stage”. https://cdn2.hubspot.net/hubfs/4372260/Toronto%20on%20the%20Global%20Stage%20-%20for%20TFI.pdf24 RBC Global Asset Management Study (2018), as presented on the Visual Capitalist https://www.visualcapitalist.com/canada-u-s-banking-differences/ 25 Canadian Bankers Association, Database of Domestic Banks’ Financial Results (2012-2017) https://cba.ca/bank-financial-results-annual26 Note: SG operates as both a fully-incorporated subsidiary and a branch of the parent French company, i.e. Schedule II and III.
2. FINANCIAL SERVICES
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Schedule III banks are branches of a foreign-owned bank and are subject to significant restrictions on their operations. ‘Full service branches’ cannot accept deposits lower than €101,787 ($150,000), and so-called ‘lending branches’ are barred from accepting deposits or borrowing money except from financial institutions.
Figure 3. EU banks with a Schedule III presence in Canada
Outside of the various regulated banks, the so-called Foreign Bank Representative Offices are not permitted to carry on any activity in Canada, other than promoting the services of the foreign bank and acting as liaison between the foreign bank and its Canadian clients.
Figure 4. EU Banks with Foreign Bank Representative Offices in Canada
Canadian Trade Associations Related to Financial Services
• Canadian Bankers Association• Mutual Fund Dealers Association• Investment Industry Association of Canada• Advocis: The Financial Advisors Association of Canada• Financial Markets Association of Canada• International Fiscal Association - Canada• Treasury Management Association of Canada• Canadian Life & Health Insurance Association
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Figure 5. EU-Canada Trade in Financial Services (€B)
2,05
1,85
2,01
0,42
0,46
0,7
1,63
1,38
1,31
0 0,5 1 1,5 2 2,5
2016
2017
2018
Balance Imports Exports
Source: European Commission, Canada
Balance of trade with Canada on financial services has been slightly decreasing, despite EU increasing exports to Canada. Same for insurance and pension services (below).
Figure 6. EU-Canada Trade in Insurance & Pension Services (€B)
1,51
1,29
1.34
0,16
0,18
0,21
1,34
1,11
1.11
0 0,2 0,4 0,6 0,8 1 1,2 1,4 1,6
2016
2017
2018
Balance Imports Exports
Source: European Commission, Canada
2.2. CETA Chapter 13
Chapter 13 applies to measures adopted and maintained by Canada and the EU with regards to financial institutions, investors and their investments in financial institutions, and cross-border trade in financial services.27
Financial services include:
• Insurance and insurance related services;• Banking and other financial services including financial advisory services, provision and transfer of financial information, and
financial data processing and software.
Because CETA is comprehensive, it applies to financial services that are regulated at the federal and provincial levels. EU companies in the insurance, securities dealings and personal financial advice services should note that these sectors are largely regulated at the provincial level and therefore requirements may differ throughout Canada.
27 Global Affairs Canada, CETA Chapter Summaries - www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/ceta-aecg/chapter_summary-resume_chapitre.aspx?lang=eng#a14
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2.3. Case Studies
▶ Caixabank
Caixabank is a Spanish financial services company based in Valencia and Barcelona. It is Spain’s third largest lender by market value. Canada is an increasingly important trade partner for Spain. In 2018, Spanish exports to Canada grew by 6%, while Spanish imports from Canada increased by 30%.28 CaixaBank’s presence in Canada caters to Spanish companies doing business in Canada and Canadian companies doing business in Spain.
Caixabank opened its Toronto representative office in December 2018, with two employees. This was Caixabank’s second location in North America after New York, which has been in operation since 2015.
Caixabank’s representative office in Toronto is focused on informing Canadian companies about the products and services that CaixaBank offers in Spain and ensuring their Spanish customers can rely on CaixaBank to support their business needs in Canada, proactively and expertly.
Additionally, it aims to improve relations with Canadian financial institutions which could support their clients with services and products related to trade and project finance.29
According to Caixabank “Canada is one of the easiest countries in the world to do business. It has become even easier with CETA, especially with the simplified access to Canadian work authorisations.”30
▶ Ortec Finance
The asset liability management solutions of Ortec Finance help institutional investors analyse and control their long-term strategic risk-return trade-off, while simultaneously managing the short-term risks.
Over the last decade Ortec Finance has seen its revenue and profits increase by about 20% per year, forcing the staff to grow to about 200 people.
Besides its main offices in the Netherlands, Ortec Finance operates from locations in the United Kingdom and Switzerland. When its Canadian client list expanded further in the last couple of years, the company decided to open a North American office in 2016.
While Ortec Finance serves clients in the U.S., Canada and Bermuda, the Canadian pension funds that have adopted the company’s software solutions rank among the largest in the world, and they’re based primarily in Toronto.
As Ortec Finance becomes more established in Toronto, the company intends to attract new clients, not only among Canadian pension funds but also in other financial sectors throughout North America such as asset management and insurance.
Their office in Toronto continues to expand, with CETA’s mobility provisions making it easier to move staff and personnel between their HQ in Rotterdam and Toronto.31
28 Department of Innovation, Science and Economic Development Canada, Trade Data Online - https://www.ic.gc.ca/eic/site/tdo-dcd.nsf/eng/home 29 Caixabank International – Canada - https://www.caixabank.es/empresa/internacional/or/canada_en.html 30 Toronto Finance International, Caixabank case study - https://tfi.ca/files/pages/TFI-Case-Study-CaixaBank.pdf 31 Toronto Financial Services Alliance, Case Study – Ortec Finance - https://cdn2.hubspot.net/hubfs/4372260/Case%20Studies/TFSA_CaseStudy_Ortec_.pdf
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Q&AQ. Where can I get information on establishing a branch of a foreign bank in Canada?
A. From the Office of the Superintendent of Financial Institutions (OSFI), at Guide to Foreign Bank Branching.
A quick summary:
• OSFI assesses applications by foreign banks looking to establish a branch in Canada.• OSFI makes recommendations to the Minister of Finance, who has the authority to approve the
establishment of a Foreign Bank Branch.• Two approvals are required:
o Ministerial order – Permission to Establish a Foreign Bank Brancho Superintendent (OSFI) order – Approving the Commencement and Carrying on of
Business in Canada.• It is recommended the applicant branch contact OSFI’s Regulatory Affairs Division (15th Floor,
255 Albert Street, Ottawa, Ontario, Canada, K1A 0H2, Tel: +1 613-990-6282, website: http://www.osfi-bsif.gc.ca/swppws/default.html) to arrange an in-person meeting.
Q. What capital is needed?
A. Branches of foreign banks are required to maintain “capital equivalency deposits” in Canada to provide some cushion for their Canadian liabilities.
Q. What are the financial sector opportunities in Canada?
A. Opportunities range from the traditional financial services sector, (banking and insurance) to specialist sub-sectors, like the public-private partnerships (PPPs), and to more creative applications in the fintech sector.
Q. What regulations apply for EU companies that want to offer technology services to the financial sector in Canada (such as software, data storage, personal finance advice, or other applications that do not rely on the taking of deposits)?
A. There are no direct limitations for companies that want to offer financial technology solutions, however they must be mindful of the various privacy, consumer rights, and other financial services restrictions that exist in Canada, and which may vary by province.
Q. What is the distribution of fintech start-ups and technology in the Greater Toronto Area (the financial capital of Canada)?
A. Payments (21%), lending (17%), back office (13%), digital currencies/forex (12%), and capital markets (12%).
2.4. Canadian Legislation and Regulation
Regulation in the financial services sector is shared between the provincial and federal governments. Federally-regulated financial institutions (banks, federally-regulated trust and loan companies, federal credit unions, life insurance, and property and casualty insurance sub-sectors) are subject to various federal statutes. Provincial regulations apply to Provincial credit unions32, caisses populaires, and securities dealers/exchanges.
Federal legislation:
• Bank Act is the Canadian legislation governing how banks operate in Canada.• Cooperative Credit Associations Act governs federal retail associations in Canada.• Insurance Companies Act governs all federal insurance companies in Canada.• Trust and Loan Companies Act is the primary federal legislation for all trust and loan companies.• Canada Deposit Insurance Corporation Act stipulates the deposit insurance parameters and requirements.
32 Credit Unions used to be the purview of the Provinces, but changes to legislation now allow Credit Unions to apply to become federally regulated. Therefore, there are now some federally-regulated Credit Unions in Canada.
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Provincial Regulators/Legislation:
• Ontario Securities Commission (OSC) is responsible for regulating capital markets in Ontario.• Autorité des marchés financiers (AMF) regulates Québec’s financial markets and assists consumers of financial products
and services.
2.5. CETA Reservations Related to Financial Services
There are certain reservations that relate to chapter 13 of CETA which set out essential requirements for financial services under the agreement. Reservations are located in Canadian Annexes I, II, and III to the CETA agreement. The following are important to take note of:
• Reservation IIIA-C-1 - Canadian Directors:
This reservation includes a limit on non-Canadian directors for federally-regulated financial institutions. Specifically, a minimumof one half of the directors of a federally-regulated financial institution that is a subsidiary of a foreign institution, and amajority of the directors of any other federally-regulated financial institution must be Canadian citizens ordinarily resident inCanada or permanent residents ordinarily resident in Canada.33
In other words, EU nationals must respect the conditions imposed by Canada in relation to opening a bank, including theaccepted ownership structures under Canadian law.
• Reservation I-C-19 – Cross-Border Trade in Services, Auditing:
Banks are required to have a firm of accountants to be auditors of the bank. A firm of accountants must be qualified as setout in the Bank Act. Among the qualifications required is that two or more members of the firm must be ordinarily resident inCanada and that the member of the firm jointly designated by the firm and the bank to conduct the audit must be ordinarilyresident in Canada.
An insurance company, a cooperative credit association, and a trust or loan company require an auditor who can either be a natural person or a firm of accountants. If a natural person is appointed to be the auditor of such a financial institution, the person must be ordinarily resident in Canada. If a firm of accountants is appointed to be the auditor, the member of the firm jointly designated by the firm and the financial institution to conduct the audit must be ordinarily resident in Canada.34
• Reservation II-C-6 – Investment in Security Markets:
Canada reserves the right to adopt or maintain a measure relating to the acquisition, sale or other disposition by nationalsof the European Union of bonds, treasury bills or other kinds of debt securities issued by the Government of Canada or aCanadian sub-national government.35
2.6. Relevant regulatory authorities and trade associations
Bank of Canada is Canada’s central bank (responsible for monetary policy, financial system, currency and funds management).
Office of the Superintendent of Financial Institutions (OSFI) regulates and supervises 400+ federally regulated financial institutions, and 1200+ pension plans.
Department of Finance develops and implements financial sector policy and legislation.
Canada Deposit Insurance Corporation provides deposit insurance to all member institutions.
33 European Commission, CETA Chapter by Chapter, Annex III Senior Management and Board of Directors, CETA, Annex III, IIIA-C-1 (p. 7) - http://data.consilium.europa.eu/doc/document/ST-10973-2016-ADD-15/en/pdf34 European Commission, CETA Chapter by Chapter, Annex I National Treatment, CETA, Annex I, I-C-19 (p.35) - https://data.consilium.europa.eu/doc/document/ST-10973-2016-ADD-9/en/pdf#page=835 European Commission, CETA Chapter by Chapter, Annex II Market Access and National Treatment, CETA, Annex II, Schedule of Canada, II-C-6 (p.11)http://data.consilium.europa.eu/doc/document/ST-10973-2016-ADD-12/en/pdf
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Financial Consumer Agency of Canada (FCAC) is responsible for consumer protection and supervises payment card network operators and external complaints bodies.
Canadian Payments Association (d/b/a Payments Canada) operates national clearing and settlement system in Canada.
Financial Reports and Transactions Analysis Centre of Canada (FINTRAC) is Canada’s financial intelligence unit. FINTRAC facilitates the detection, prevention and deterrence of money laundering and the financing of terrorist activities, while ensuring the protection of personal information under its control.
Canadian Bankers Association advocates for effective banking policy.
Canadian Life & Health Insurance Association represents and advocates on behalf of health and life insurance providers in Canada.
Legislative Framework for Foreign Banks provides an overview of how OFSI interprets and administers the framework for foreign banks as set out in the Bank Act.
Office of the Privacy Commissioner of Canada protects and promotes privacy rights.
Ombudsman for Banking Services and Investments (OBSI) resolves disputes between banks and their customers.
2.7. Certifications and Licenses
Canadian Securities Institute offers 170+ courses and 30 certificates/designations in the financial services sector, including:
Canadian Securities Course (CSC) is a baseline regulatory requirement to perform securities, mutual fund and alternative funds transactions in many financial services positions. Cost is quoted as circa €685 ($1,000).
A Chartered Financial Analyst (CFA) is a globally-recognised professional designation given by the CFA Institute (formerly AIMR – Association of Investment Management and Research), that measures and certifies the competence and integrity of financial analysts. Fees (as of September 2019):
• Membership fee: €250 ($275 USD). • Program enrolment fee: €410 ($450 USD).• Level I exam fee is €762 ($860 USD).
CFA exam schedules are available here.
Institute of Corporate Directors (ICD), with 13,000 members and 11 regional chapters across Canada, is a national not-for-profit association providing education, advocacy and thought leadership, and governance resources to strengthen director performance.
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Canada’s marine industry is comprised of domestic marine operators, providing both domestic and international shipping services, and international shipping lines calling at Canadian ports.
The domestic sector falls into four geographic regions:
- Pacific West Coast;- Great Lakes-St. Lawrence Seaway;- Atlantic region; and- Northern region.
The Great Lakes-St. Lawrence Seaway region and Atlantic region are the most relevant geographically for EU companies and are emphasized in this section of the guide.
Figure 7. Canada’s Marine Transportation Network
Source: Transport Canada, Transportation in Canada – 2018 Overview Report
From a strategic policy perspective, under the Government of Canada’s National Policy Framework for Strategic Gateways and Corridors released in July 2007, Canada’s gateways are divided into three strategic regions: the Asia-Pacific Gateway and Corridor, the Ontario-Québec Continental Gateway, and the Atlantic Gateway and Trade Corridor.36
Gateways comprise a range of multimodal transportation infrastructure to move goods and services to and from global markets. For Canada, ports are an important component of the broader trading system.
36 Transport Canada, Gateways and Corridors - https://www.tc.gc.ca/eng/policy/anre-menu-3023.htm
3. INTERNATIONAL MARITIME TRANSPORT SERVICES
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3.1. The Canadian Port System
Ports are the main point of entry for imported containerised manufactured goods in Canada, dominated by the Asian market. Ports are important hubs connecting Canadian coast lines to inland domestic and U.S. markets where goods are shipped by trucks and railways.37
As of December 2018, Canada had 557 port facilities, 883 fishing harbours and 127 recreational harbours in Canada. Transport Canada, the federal department responsible for transportation policy and programmes, has a mandate for two categories of ports: 18 ports independently managed by Canada Port Authorities, and 44 port facilities currently owned and operated by Transport Canada.38
Canada’s public ports may be owned by Transport Canada or by non-federal entities (e.g. private entities, provinces and municipalities, or not-for-profit entity). There are also a number of non-federal ports in Canada where Transport Canada’s role is limited to a regulatory and compliance monitoring role.
Canada Port Authorities handle more than 60% of the overall marine commercial tonnage. In 2017, the five largest Canada Port Authorities (Vancouver, Montréal, Prince Rupert, Halifax and Saint John) had a total container throughput of 6.33 million Twenty-Foot Equivalent Units (TEUs).39
In 2017, Canada’s ports and marine shipping brought in €75 billion ($110 billion) accounting for 21% of Canada’s total imports by value. For the same period, they carried almost €61.5 billion ($90 billion) or 17% of Canada’s total exports to world markets.40
Table 1. Overview of Canada’s Top Five Ports and the Great Lakes and St. Lawrence Seaway (2018)41
PORT VOLUME OF CARGO (MILLION TONNES) CARGO MAIN MARKETS
Vancouver 147.1 Mt Coal, grain, minerals, containers, autos
Asia
Prince Rupert 26.7 Mt Grain, containers Asia
Montréal 38.9 Mt Containers, petroleum, grain Europe, Québec, Ontario and U.S. Midwest
Halifax 4.8Mt Containers, petroleum products, vehicles
Europe
Saint John 25.1 Mt Crude oil Europe
The Great Lakes and St. Lawrence Seaway
40.4 Mt Grain, iron ore, salt, and liquid petroleum
Central Canada
Source: Transportation in Canada (2018)
3.2. Industry Structure
Canadian registered vessels are active in domestic commercial activities, carrying on average 98% of domestic tonnage, as well as in trade between Canada and the United States. In contrast, Canadian shippers mostly rely on foreign registered fleets to carry goods to non-U.S. international destinations.42
The domestic marine sector’s main activity is transporting bulk cargo. It is also critical for Northern resupply and offshore resource development. For example, marine vessels are used for the transportation of workers and supplies to support offshore oil industries in Eastern Canada.
In 2018, Canada’s commercial registered fleet (1,000 gross tonnage and over) had 113 vessels with a total of 2.7 million gross tonnes. The fleet’s backbone is dry bulk carriers, with 29% of total gross tonnage and 43% of vessels, followed by general cargo and tanker vessels. There is also a large active fleet of 484 tugs and 1,876 barges (15 gross tonnage and over), operating in Canada, mainly on the Pacific Coast (offshore).43
37 Transport Canada, Transportation in Canada – 2018 Overview Report - https://www.tc.gc.ca/documents/Transportation_in_Canada_2018.pdf 38 Ibid.39 Transport Canada, Backgrounder on Canada’s Port System - https://www.tc.gc.ca/eng/backgrounder-canada-port-system.html 40 Ibid.41 Transportation in Canada - 2018 Overview Report - https://www.tc.gc.ca/documents/Transportation_in_Canada_2018.pdf 42 Ibid.43 Ibid.
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Additionally, ferries in Canada provide an important resupply and transportation link. The members of the Canadian Ferry Association (which includes all major ferry routes in Canada) carried more than 53 million passengers and more than 21 million vehicles in 2018.44
Canada is situated along international shipping routes that link North America with other regions. Many international container lines call at Canadian ports as members of alliances of container shipping companies and as independent lines. These include Maersk Line, Hapag Lloyd, Mediterranean Shipping Company (MSC), and CMA-CGM Group.
3.3. Key Policy and Regulatory Initiatives
There are a number of important federal policy initiatives that are helping shape the evolution of Canada’s maritime transport sector.
- The National Trade Corridors Fund (NTCF): The €1.28 billion ($2 billion), 11-year NTCF supports projects that result in more efficient trade corridors, including ports and other maritime transportation infrastructure. The current calls for proposal (as of April 2020) focus on projects supporting trade diversification and projects supporting Canada’s Territorial North.
- Oceans Protection Plan (OPP): Launched in 2016, the OPP is a comprehensive framework to protect Canada’s coasts and waterways. It includes funding for a variety of projects and initiatives addressing emergency preparedness, marine protection, ecosystem conservation, and more.
- Transportation Modernization Act: Important changes to the marine transportation sector came into force in 2018 as part of the Transportation Modernization Act. These include amendments to the Coasting Trade Act and the Canada Marine Act.
3.4. Trade between the EU and Canada
For the period 2016-2018, Canadian exports of maritime transport services to the EU increased from €1.05 billion to €1.43 billion (+36%), while EU exports increased from €1.81 billion to €2.16 billion (+19%).45
Figure 8. EU-Canada Trade in Sea Transport Services (€B)
1,81
1,89
2,16
1,05
1,3
1,43
0,75
0,58
0,73
0 0,5 1 1,5 2 2,5
2016
2017
2018
Balance Imports Exports
Source: European Commission, Canada
44 Ibid.45 European Commission, Canada - https://ec.europa.eu/eurostat/web/international-trade-in-services/data/database
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3.5. CETA Chapter 14
Maritime transport is the backbone of globalised trade, handling more than 80% of world merchandise trade by volume and 70% by value.46 The inclusion of a dedicated chapter in CETA (Chapter 14) for International Maritime Transport Services (IMTS) reflects the economic importance of this sector for the EU and Canada.
Chapter 14 refers inter alia to the following international maritime transport services:
• transport of passengers and/or cargo by a sea-going vessel between different countries;• customs clearance services/customs house brokers’ services;• container station and depot services;• door-to-door or multi-modal transport operations;• feeder services;• maritime agency services;• maritime auxiliary services;• maritime cargo handling services;• maritime freight forwarding services; and • storage and warehousing services.47
Chapter 14 outlines the scope, obligations, and reservations for regulating the maritime transport market between the EU and Canada. It includes measures to ensure fair and equal access to ports and port services for commercial ships and provides definitions so that commitments are clear.
For one, it establishes that government measures affecting the IMTS sector are subject to the provisions in CETA’s Investment and Cross-border Trade in Services chapters.
Chapter 14 also sets out specific obligations, including:
• commitment to allow international maritime service suppliers to provide the repositioning of owned or leased empty containers on a non-revenue basis, as well as provide feeder services for international cargo between ports in each other’s territory;
• a prohibition on cargo-sharing arrangements with third countries;• obligation to provide unrestricted access to the carriage of government cargo; and• obligation to provide IMTS suppliers with ability to contract directly with road and rail carriers of their choosing for
multimodal transport operations.48
Importantly, Chapter 14 also lays out non-conforming measures establishing limits on the application of the obligations (see “Canada CETA Reservations” at the end of this chapter).
New routes, new opportunitiesCETA has been a catalyst for a new opening up the Canadian maritime transport market; namely, the liberalisation of feedering on the shipping route between Montreal and Halifax. Feedering is the term given to the “transhipment of merchandise from one ship to another in order to transport the merchandise to a central container terminal.”49 The Port of Montreal and Port of Halifax are the second and fourth largest ports in Canada, respectively.50 The opening up of this route will “make it easier for EU maritime operators and their larger vessels to operate in Canada.”51
46 United Nations Conference on Trade and Development (UNCTAD), Review of Maritime Transport 2019 - https://unctad.org/en/PublicationsLibrary/rmt2019_en.pdf 47 CETA Ch. 14 - https://ec.europa.eu/trade/policy/in-focus/ceta/ceta-chapter-by-chapter/ 48 Global Affairs Canada, CETA Chapter 14 Summary - https://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/ceta-aecg/chapter_summary-resume_chapitre.aspx?lang=eng#a1449 GEFCO, What is Feedering? - https://www.gefco.net/en/glossary/definition/feedering-1/ 50 Transport Canada. Backgrounder on Canada’s Port System. Available at - https://www.tc.gc.ca/eng/backgrounder-canada-port-system.html. 51 European Commission. Guide to the Comprehensive Economic and Trade Agreement (CETA) - https://trade.ec.europa.eu/doclib/docs/2017/septem-ber/tradoc_156062.pdf
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3.6. CETA and Coasting Trade in Canada
One area worth highlighting is the changes the entry into force of CETA introduced to the Coasting Trade Act in Canada. The definition of “coasting trade” is contained in section 2 of the Act and includes any type of transportation by vessel of goods, passengers and “any other marine activity of a commercial nature in Canadian waters.”52
CETA introduced changes to the Act to give EU companies access to Canadian coasting trade. A number of specific marine activities are exempted from the licencing scheme otherwise required by the Act (although companies must still provide advance notice of coasting trade), including:
• the repositioning of empty containers; • dredging activities; and• feeder services.53
3.7. Trade Associations
• Association of Canadian Port Authorities• Canadian Ferry Association• Canadian International Freight Forwarders Association• Canadian Maritime Law Association• Shipping Federation of Canada
3.8. Case Studies
▶ Maersk
The Ports of Halifax and Montreal have ramped up operations thanks to a new Maersk express freight service to the Mediterranean. Maersk, based in Denmark, is the world’s largest container shipping company. In addition to a weekly service between Montreal and ports in Northern Europe, in 2018 Maersk announced plans to add a weekly service between Montreal and ports in the Mediterranean. Ships leaving Montreal will also stop in Halifax.
With more than 200 employees spread across Canada, Maersk offers more than just ocean transport. Their Inland Services – incorporating rail, road and barges – ensures seamless connection to and from any inland location.54
The increased volume of maritime trade resulting from Maersk’s additional routes to Canada will also have a positive impact on service suppliers. CETA will ensure open markets for international maritime transport services and is one of the first agreements to conditionally open feeder services, transportation of empty containers and dredging services.
▶ CMA-CGM
Headquartered in Marseille, CMA-CGM is one of the largest shipping and maritime transport companies in the world. One of their larger areas of focus is in shipping seafood. With CETA enabling the shipment of live lobster overseas, CMA-CGM has been keen to benefit from this by using their extensive sea transport services network to facilitate shipping.
To benefit from this aspect of CETA requires a knowledge base and specialised supporting services. CMA-CGMs “Reefer Experts” are specialised in seafood products. They know their markets thoroughly and give advice and support to customers before, during and after transport. Seafood products are sensitive to the slightest deviation in temperature during the cold chain; control of the transport environment is crucial and everything lies in the details. The Reefer Experts are familiar with the specificities of port terminals, services, customer needs, stuffing and unloading techniques, and refrigeration technologies.
52 Coasting Trade Act (S.C. 1992, c. 31) - https://laws-lois.justice.gc.ca/eng/acts/c-33.3/ 53 Borden Ladner Gervais LLP, The Impact of CETA on the Coasting Trade Regime in Canada - https://www.blg.com/en/insights/2016/12/the-impact-of-ceta-on-the-coasting-trade-regime-in-canada-brief-analysis-of-bill-c-30 54 Maersk, Shipping to and from Canada - https://www.maersk.com/local-information/north-america/canada
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CMA-CGM, partly in response to CETA opening up the market to the transport of lobsters, introduced the AQUAVIVA: a new generation of container allowing the safe transportation of live lobsters. With the introduction of the new AQUAVIVA containers, lobsters and other seafood can now travel by sea in optimal conditions mimicking their natural habitat to preserve the product’s quality.55 Previously, lobsters were carried either frozen or alive on ice by plane.
CMA-CGM plans to scale this service based on demand. By opening up the lobster trade, CETA has created the conditions for an innovative maritime transportation service to thrive.
Q&AQ. Where can I find a list of Canadian ports? A. At Transport Canada’s Backgrounder on Canada’s Port System.
Q. What certificates will I need for the Canadian maritime transport sector? A. You will need to review Transport Canada’s guidance on Marine Training, Examination and Certification, which covers the regulations, examinations, and training standards for the Certification of Seafarers. Certificates of Competency will be issued to seafarers after they have successfully completed all the prerequisites and examinations appropriate to the certification level.
3.9. Canadian Legislation and Regulations
The Canada Shipping Act (CSA) 2001 is the principal legislation governing safety of marine transport and recreational boating, as well as protection of the marine environment.
The Pilotage Act provides the legislative framework for creating Canada’s four Pilotage Authorities: 1) the Atlantic Pilotage Authority; 2) the Laurentian Pilotage Authority; 3) the Great Lakes Pilotage Authority; and 4) the Pacific Pilotage Authority. Each authority has a mandate to operate and maintain safe and efficient pilotage services in a designated area. Each authority has the exclusive right to provide pilotage services within their geographic area of operation.56
The Coasting Trade Act governs the use of foreign ships and non-duty paid ships in the coasting trade. It is administered by the Minister of Transport.
Advance Notification of Coasting Trade for Foreign Vessels requires that eligible vessel owners and operators must provide advance notice to Transport Canada before providing these coasting trade services without a licence in Canada.
3.10. Training and Certifications
Transport Canada - Marine Training and Certification of Individuals covers applying for a Pleasure Craft Operator Card, training and certification of seafarers, and the Canadian Coast Guard College.
55 CMA-CGM, special services for refrigerated cargo - http://www.cma-cgm.com/services/special-services-refrigerated56 Marine Pilotage in Canada, https://hillnotes.ca/2018/10/23/marine-pilotage-in-canada-en-route-to-modernizing-the-pilotage-act/
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3.11. CETA Reservations
Reservations for Canadian Federal, Provincial, and Territorial and the EU to the Obligations contained in Chapter 14 IMTS are located in Schedules to Annex I and Annex II of the CETA Agreement.
Key Annex I Reservations for Canada include:
• Reservation I-C-23 – requirements to register a vessel in Canada;• Reservation I-C-24 – certification requirements for masters, mates, engineers, and certain other seafarers; and• Reservation I-C-25 – requirements to obtain a licence or Pilotage certificate from the relevant regional Pilotage Authority.
Key Annex II Reservations for Canada include:
• Reservation II-C-14 – the investment in or supply of marine cabotage services; and• Reservation II-C-15 – covers Canada’s right to adopt or maintain measures in areas such as pollution control, safe navigation,
barge inspection standards, water quality, pilotage, salvage, drug abuse control and maritime communications.
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The telecommunications sector in Canada is dominated by three players (Bell, Rogers, and Telus) who provide 89.2% of telecommunications services in Canada.57 This represents a revenue market share of 90.7%. These companies provide internet, mobile and landline telephone, and TV/radio distribution services.
Total Canadian telecommunications revenues reached €34 billion in 201858 as Canadians used ever-increasing amounts of data through both fixed Internet and mobile services. Subscription (market penetration) of landline services (63%) continued their decline, while mobile (90%) and internet (89%) increased. Usage of data through both fixed internet and mobile services is increasing.59
In 2017, households spent approximately €119 monthly on telecommunication services (See Figure 11).60
Figure 9. Approximate monthly expenditure per type of telecommunication service in 2017
Source: CRTC, Communications Monitoring Report 2019
Challenges: A major challenge for the telecommunications sector is the lack of broadband connection in rural and remote areas of Canada.
In its budget of 2019, the federal government has set a national target of 95% of Canadian homes and businesses having access to internet speeds of at least 50/10 Mbps by 2026 and 100% by 2030, no matter where they are located in the country.61
4.1. Service Providers in a Captive Market
The Canadian telecommunications market is dominated by an oligopoly of 3 main companies (Bell, Rogers, and Telus).62 These companies all offer nation-wide coverage and comprehensive service plans. Their sub-brands include: Virgin Mobile and Lucky Mobile (Bell), Fido and Chatr (Rogers), and Koodo (Telus).
Services providers are divided into two broad categories:
• Incumbent telecommunications service providers (TSPs) – the companies which provided local telecommunicationsservices on a monopoly basis prior to the introduction of competition (e.g. Bell and Telus);
57 Canadian Radio-Televisions and Telecommunications Commission (CRTC), Communications Monitoring Report 2019 - https://crtc.gc.ca/eng/publi-cations/reports/policymonitoring/2019/index.htm58 Ibid. 59 CRTC, Communications Monitoring Report 2019 - https://crtc.gc.ca/eng/publications/reports/policyMonitoring/2019/cmr9.htm 60 Ibid. 61 Government of Canada, Budget 2019. - https://www.budget.gc.ca/2019/docs/nrc/infrastructure-infrastructures-internet-en.html 62 Innovation, Science and Economic Development, Price Comparisons of Wireline, Wireless and Internet Services in Canada and with Foreign Juris-dictions - 2018 Edition - https://www.ic.gc.ca/eic/site/693.nsf/eng/00169.html
4. TELECOMMUNICATIONS
Landline €17.24
Internet €36.98
Mobile €68.96
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• Alternate service providers, which encompasses all other types of entities including cable-based carriers (i.e. Rogers), facilities-based service providers; and resellers (which are companies providing services mainly on other companies’ facilities).
The five largest telecommunication service providers (Bell, Quebecor, Rogers, Shaw and Telus) accounted for 87.4% of revenues in 2018.63 These 5 providers are a combination of incumbent TSPs and cable-based carriers, though all are facilities-based service providers.
The revenue share changes slightly from year-to-year, with any larger changes due to occasional ownership transfers. Since 2013, the incumbent TSP’s share of revenue has been declining by approximately 2% per year, to 58.2% in 2018.64
4.2. Competition and Regulation
Incumbent TSPs, along with cable-based carriers, own and operate most of the infrastructure used by other service providers. This often results in a market that is not only dominated by the 3 main companies, but regulatory policy tends to serve their interests. Smaller providers need to negotiate the price at which they can use the infrastructure of the incumbent TSPs, limiting their ability to provide true competition in the market.
Furthermore, the Canadian telecommunications sector is highly protected with strict foreign ownership rules, making it an easy target for criticism for lack of competition and high prices. This is a historical structure which hearkens back to the protection of Canadian culture in broadcasting.
4.3. Affordable Access
In part due to the nature of who owns the infrastructure, as well as a historical bias towards domestic suppliers, many Canadians do not have affordable access to mobile and internet services. Wireless services pricing in Canada is amongst the highest in the world and is controlled by the aforementioned oligopoly of three companies.
The federal government has announced plans to attempt to force Canadian telecommunication companies to reduce their prices by 25% over the next few years.65
There remains the question as to how invested the federal government is in increasing competition as its main policy plank continues to be the pursuit of lower prices. This does not address the structural and legacy reasons for the lack of affordability. It is likely that overhauling how the sector is regulated would do more to increase affordability and competition rather than imposing maximum price thresholds.
4.4. Retail vs. Wholesale
Revenues are from sales to residential and business customers, and to other carriers:
• Residential and business – 92.8%• Wholesale – 7.2%
4.5. Trade Associations
• Canadian Wireless Telecommunications Association• Canadian Association of Internet Service Providers• Canadian Independent Telecommunications Association
63 Canadian Radio-Televisions and Telecommunications Commission, Communications Monitoring Report 2019 - https://crtc.gc.ca/eng/publications/reports/policymonitoring/2019/cmr8.htm64 Ibid. 65 https://globalnews.ca/news/6634639/big-3-cellphone-price-drop-5g-auction
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4.6. Trade between EU and Canada
Figure 10. EU-Canada Trade in Telecommunications Services (€B)
0,41
0,44
0,52
0,17
0,19
0,33
0,24
0,25
0,19
0 0,1 0,2 0,3 0,4 0,5 0,6
2016
2017
2018
Balance Imports Exports
Source: European Commission, Canada
4.7. Case Studies
▶ Ericsson
Telefonaktiebolaget LM Ericsson, better known as simply Ericsson, is a Swedish multinational networking and telecommunications company headquartered in Stockholm. The company offers services, software and infrastructure in information and communications technology for telecommunications operators, traditional telecommunications and Internet Protocol (IP) networking equipment, mobile and fixed broadband, operations and business support services, cable television, IPTV, video systems, and an extensive services operation.
In 2016, Ericsson opened its Global Information and Communication Technology Centre in Vaudreuil-Dorion (Montreal suburb). It is estimated that €152.2 million was invested, creating over 100 jobs.66 This centre has enabled engineers globally to accelerate innovation cycles, reduce cost and better support Ericsson’s customers.
More recently, it was announced that Ericsson would be one of two European suppliers (together with Nokia) to be selected by Canada’s big 3 telecommunications companies to help build their 5G network. Ericsson’s partnership with Bell is especially important as it becomes only the second company allowed on Bell’s network (again, following Nokia).67
While CETA will benefit European suppliers of equipment, the decision by the big three Canadians telcos also demonstrates that CETA has further cemented the trustworthiness and strong reputation of European suppliers in the eyes of Canadian telecommunications companies. It is expected that this will help pave the way for more partnerships between EU based suppliers and their Canadian counterparts.
▶ Orange Business Services
As an infrastructure operator, technology integrator and supplier of value-added services, Orange Business Services supports businesses and local governments and public sector organisations through every step of their digital transformation. Orange Business Services Canada Inc. is located in Montreal, and is a subsidiary of French Telecommunications company Orange S.A.
Orange Business Services connects more than 360 multinational companies in North America to worldwide markets. They offer full resilient network infrastructure using the latest network technologies, including SDN, NFV, SD-WAN and hybrid network solutions, all backed by proven cyber security solutions. They also focus on serving the local market and help clients navigate the regulatory, compliance, and security landscapes in their regions. In addition, they have partnerships and certifications from numerous technology partners including Cisco, Microsoft, Riverbed, Zscaler, Juniper and Polycom, as well as many business-standard certifications, such as ITIL®, ISO and PMI.
With the benefit of CETA, and especially with workplaces looking to make use of secure online environments to conduct their business, Orange Business Services is well aligned to continue to grow its footprint in Canada.
66 Information and Communications Technology Council, January 2020 Report - https://www.ictc-ctic.ca/wp-content/uploads/2020/01/canada-eu-partnership.pdf67 https://www.cbc.ca/news/business/bce-5g-ericsson-1.5594601
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Q&AQ. What is the CRTC and what do they do? A. The Canadian Radio-television and Telecommunications Commission (CRTC) is responsible for regulating and supervising the broadcasting and telecommunications systems in Canada. The CRTC reports to Parliament through the Minister of Canadian Heritage.The CRTC is an administrative tribunal focused on achieving policy objectives established in the Broadcasting Act, Telecommunications Act and Canada’s anti-spam legislation (CASL). Any information on the structure, ownership, business operations, and regulations related to the telecommunications sector in Canada can be found on the CRTC’s website.
Q. Where can I get information on Canada’s telecommunications rules and standards? A. Go to Broadcasting and Telecommunications Regulations for information on broadcasting, distribution and spectrum licenses; telecommunications standards; and certification.
Q. How do I register as a telecommunications provider in Canada? A. Before an organisation can offer or provide customers with telecommunications services, it must register with the CRTC. Telecommunications services include: local voice services, Voice over IP (VoIP) services, internet services, long distance services, wireless services and/or payphone services.68 All telecommunications providers that carry telecommunications traffic internationally must obtain a Basic International Telecommunications Services (BITS) licence.69
Q. Who are the large internet-service providers (ISPs) in Canada? A. Bell, Rogers, Telus, Shaw and Videotron are among the largest ISPs in Canada. Bell and Rogers are the large internet service providers in Ontario. Shaw and Telus are the main players in the Western Provinces. Videotron’s primary market is Québec. The Internet service revenue share of these top five companies decreased, from 73.3% in 2017 to 71.7% in 2018.The second tier of large ISPs (considered independent ISPs) include: Cogeco, Eastlink, Northwestel, Sasktel, TekSavvy and Xplornet.The large ISPs represent 90% of total residential high-speed Internet service subscriptions in 2018.70 Cable-based carriers and incumbent TSPs had an 85.5% share of the market by subscriptions while wholesale-based service providers and other facilities-based carriers continued to increase their share of the market, reaching 8.9% and 5.6% of subscriptions.71
Q. What is the CRTC Internet Code? A. The Internet Code became effective on January 31, 2020, and applies to the largest regional and national ISPs. The CRTC, however, expects all ISPs to follow the code and plans to eventually make it universally applicable. This code provides Canadians with additional safeguards against unexpectedly high bills and helps them resolve disputes with their ISPs. Canadians will benefit from:• Easier to understand contracts;• Clearer information about prices including for bundles, promotions and time-limited discounts;• Bill shock protection which includes notifications when customers approach and reach data usage limits; and• Great flexibility regarding cancellation of contracts, including a 24-month maximum whereby ISP; can impose contract cancellation penalties.
Q. Does the CRTC Regulate Internet Services? A. The CRTC does not regulate internet retail rates, quality of service, billing, marketing practices, equipment offered, and customer relations of Internet service providers except in rare cases where competition is insufficient.For the most part, the CRTC has determined the market for Internet services in Canada is competitive enough to ensure ongoing creativity and innovation without regulation.
68 CRTC, Telecommunications Providers - https://crtc.gc.ca/eng/comm/telecom/69 CRTC, Basic International Telecommunications Services Licence - https://crtc.gc.ca/eng/comm/telecom/international.htm 70 CRTC, Communications Monitoring Report 2019 - https://crtc.gc.ca/eng/publications/reports/policyMonitoring/2019/cmr9.htm 71 Ibid.
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4.8. Canadian Legislation
Telecommunications Act regulates telecommunications by ensuring reliable services and protecting privacy.
Canadian Radio-Television and Telecommunications Commission (CRTC) is the federal regulator of broadcasting and telecommunications in Canada.
4.9. CETA Reservations
Reservations to the telecommunications services chapter are located in Annex I to the CETA Agreement. There is one specific reservation which has a number of threshold requirements.
Reservation I-C-9, Ownership, Control, and Directors72
Foreign investment in facilities-based telecommunications service suppliers is restricted to a maximum, cumulative total of 46.7% voting interest, based on 20% direct investment and 33.3% indirect investment.
Facilities-based telecommunications service suppliers must be controlled by Canadians. At least 80% of the members of the board of directors of facilities-based telecommunications service suppliers must be Canadians.
Exceptions to Reservation I-C-9a) Foreign investment is allowed up to 100% for suppliers conducting operations under an international submarine cable licence.b) Mobile satellite systems of a foreign service supplier may be used by a Canadian service supplier to provide services in Canada.c) Fixed satellite systems of a foreign service supplier may be used to provide services between points in Canada and all points
outside Canada.d) Foreign investment is allowed up to 100% for suppliers conducting operations under a satellite authorisation.e) Foreign investment is allowed up to 100% for facilities-based telecommunications service suppliers that have revenues,
including those of its affiliates, from the supply of telecommunications services in Canada representing less than 10% of the total telecommunications service revenues in Canada.
72 European Commission, CETA Chapter by Chapter, Annex I National Treatment, Market Access, Senior Management and Boards of Directors, CETA, Annex I, I-C-9 (p.22) - http://data.consilium.europa.eu/doc/document/ST-10973-2016-ADD-9/en/pdf#page=8
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Online services, marketing and sales are increasingly popular. Some customers considered an online presence a necessity for companies in today’s global marketplace even before the COVID-19 pandemic. It has only grown in importance ever since.
CETA recognises the importance of electronic commerce in a global economy through a standalone chapter, which addresses all transactions done online, not just the sale of goods.
Acknowledging that the future of e-commerce depends on its security and the confidence that consumers and businesses place in it, the e-commerce chapter includes measures to protect personal information and to facilitate cooperation on issues such as the treatment of spam and protection from fraudulent and deceptive commercial practices. The chapter also includes a commitment to maintain the current framework of not applying customs duties on digital content transmitted electronically as a means to further enhance the transparent and predictable regulatory framework of electronic commerce.73
5.1. Market Size
Total e-commerce sales of goods in 2019, recorded by Canadian retailers, were €14 billion ($22 billion), representing 3.6% of total retail sales of €394 billion ($616 billion). This includes both brick-and-mortar and “pure play”. 2019 saw a 25% increase over e-commerce sales in 2018 which were €12 billion ($17.5 billion), representing 2.9% of total retail sales €413 billion ($605 billion).74
Purchases made by Canadian consumers from foreign websites are not captured in the above numbers from Statistics Canada. This means that the above numbers are likely much larger than what is reported, especially since many Canadians make purchases from non-Canadian online retailers and service providers.
5.2. Computer and IT Related Services
In recent years, the strong economic performance of the Canadian information and communications technologies sector (ICTS) has been driven by the software and computer services sub-sector. In 2018, this sub-sector posted strong growth in terms of GDP (+7.7%), revenues (+5.9%), and employment (+8.0%).75
This growth originates mainly from sales in the domestic market, which accounted for more than 85% of the Canadian software and computer services sub-sector revenues.
Cyber security and data analytics have been driving growth in the software and computer services sub-sector. The Canadian cyber security software and services market was estimated at almost €1.5 billion ($2.3 billion) in 2018, up 9.2% from 2017.76
Another major driver of the growth in the software and computer services sub-sector is the shift to cloud computing delivery models. These models have led to declines in the prices of several IT services, resulting in stronger demand for these services. Consequently, many Canadian firms are shifting to cloud services, which means that their internal IT functions are transferred to third-party IT services companies.
73 Global Affairs Canada, CETA Chapter 16 Summary - https://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/ceta-aecg/chapter_summary-resume_chapitre.aspx?lang=eng#a16 74 Statistics Canada - https://www150.statcan.gc.ca/t1/tbl1/en/cv.action?pid=2010007201#timeframe75 Innovation, Science and Economic Development Canada - https://www.ic.gc.ca/eic/site/ict-tic.nsf/eng/h_it07229.html 76 Ibid.
5. ELECTRONIC COMMERCE
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5.3. Internet Penetration
Canada is very well connected to the internet. It has high internet penetration, with 94% of Canadians having home Internet access. In 2018, the share of Canadians aged 15 and older who used the Internet was 91%.77 Nearly 84% of Internet users bought goods or services online in 2018, spending €37.9 billion ($57.4 billion).78
Canadians also spend a lot of time online, with 73% spending between 3-4 hours online per day.79 This usage is on par with other developed markets, like the USA and the EU.
The most common online activities include email, banking, accessing social media, catching up on news/current events and shopping. Notably, instant messaging has become a more common use of how Canadians spend time online, increasing from 32% of Canadians who use it to 47% in 2019.80
Facebook is Canada’s favourite and most-used social media site, but at least one-third use LinkedIn, Instagram and WhatsApp. The number of people who use Twitter and Snapchat dropped slightly in 2019, with Twitter falling from 26% in 2018 to 23% in 2019, and Snapchat dropping from 19% in 2018 to 14% in 2019.81
5.4. Which Channels are Driving Growth?
While mobile device usage is certainly growing, more than half (51%) of all Canadians are using desktops and laptops when they head online. Slightly fewer (at 48%) accessed the internet using a smartphone, tablet or other mobile device. Notably, 57% of those aged 55 and over are using a mobile device to access the internet.82
In 2019, 46% of Canadians said they purchased a product or service online using their mobile device.83
5.5. E-Commerce Breakdown
Overall, 87% of internet users in Canada made an online purchase in 2019. A computer remains the most common device used for online purchasing used by 78% of Canadians. Mobile devices (46%) and tablets (25%) were also commonly used for e-commerce purposes.84
Streaming services have increased in popularity, especially in 2020 as the COVID-19 crisis lingered on. According to a report by Statista, 68.6% of Canadian adults report watching streamed or downloaded video content at least once per month. In addition, 7.1 million Canadians subscribe to a paid video streaming service.85
77 Statistics Canada, Canadian Internet Use Survey, October 2019. - https://www150.statcan.gc.ca/n1/daily-quotidien/191029/dq191029a-eng.htm 78 Ibid.79 Canadian Internet Registration Authority - https://cira.ca/resources/corporate/factbook/canadas-internet-factbook-201980 Ibid.81 Ibid. 82 Ibid.83 Ibid. 84 Ibid. 85 https://www.finder.com/ca/streaming-statistics-canada
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5.6. E-Commerce Customer Profile
The profile of e-commerce participants in Canada can be divided by location, household, gender and age cohort, as summarised below:86
Figure 11. Use of E-Commerce by location, household, gender and age cohort
42%
23%
20%
12%
3%
HouseholdsCouples withoutchildrenCouples with children
Living alone
Single, living withother adultsSingle Parents
41%
38%
21%
Location
Urban
Suburban
Rural
37%
28%
25%
5%5%
Age Cohort
Baby Boomers (53-72)
Millennial (24-37)
Gen-Xers (38-52)
Pre-boomers (73+)
Gen-Zers (18-23)
49%51%
Gender
Men
Women
Source: Canada Post, The 2020 Canadian E-Commerce Report
Figure 12. Top ten categories purchased and percentage of on-line shoppers buying from each product category
624142
3132
2930
2322
2017171716161615
0 10 20 30 40 50 60 70
CLOTHING APPAREL (ANY)COMPUTERS AND ELECTRONICS
WOMEN’S APPAREL BOOKS
MEN’S APPAREL BEAUTY PRODUCTS
FOOTWEARHOME AND GARDEN
HEALTH PRODUCTSOFFICE SUPPLIES
TOYS HOME DECORAUTOMOTIVE
JEWELLERY SPORTING GOODS
CHILDREN’S APPAREL GROCERIES (PERISHABLE)
Source: Canada Post, The 2020 Canadian E-Commerce Report
86 Canada Post, The 2020 Canadian E-Commerce Report. - https://www.canadapost.ca/cpo/mc/assets/pdf/miniforms/e-commerce-report-en.pdf
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5.7. Purchases from Outside Canada
Although Canadians expressed comfort and preference for making online purchases from Canadian retailers87, the top reasons for why Canadian consumers choose particular retailers is not heavily influenced by the location of the company.
EU companies, therefore, have several means to attract Canadian consumers in e-commerce.
Figure 13. Top eight influences driving choice of retailer in Canada
80%
52% 50% 46% 44% 40% 37%
14%0%
10%
20%
30%
40%
50%
60%
70%
80%
90% Offers free shipping
Manages delivery expectations (e.g.delivery date)
Offers a better returns policy
Offers faster shipping
Provides a better deliveryexperience (e.g. convenient)
Is a Canadian company
Participates in a loyalty or rewardsprogramme
Is committed to environmentalprotection
Source: Canadian Internet Registration Authority, 2019 Canada’s Internet Factbook
5.8. New Technologies
While only a small percentage of Canadians (8%) use voice-controlled connected-home devices such as Google Home, Amazon Alexa and Apple HomePod to go online, their use jumped 60% in the last year. These technologies are likely to continue their growth in the coming years.
5.9. Big Players
Canada’s lone geographic neighbour and largest trading partner is the US, which has impacted the structure of its e-commerce markets. Almost all of the online trading/retail sites are American services, with many of them having large “big box” retail locations across Canada.
Cross-border e-commerce between the US and Canada may seem relatively seamless, but many goods are subject to delivery charges (which is not the case in the US) and some products – although available on their US website – are not available in Canada.
87 Canadian Internet Registration Authority, 2019 Canada’s Internet Factbook.- https://cira.ca/resources/corporate/factbook/canadas-internet-fact-book-2019
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Figure 14. Current Top 10 Leaders of E-Commerce Platforms in Canada
124
34,5 2616,7 15,2 14,2 10,4 7,9
6,6 4,2
AMAZON CANADA
EBAY CANADA
WALMART CANADA
BEST BUY CANADA
CANADIAN TIRE
COSTCO HOME DEPOT
ETSY CANADA
HUDSON´S BAY
NEWEGG CANADA
Estimated Monthly Visits (Millions)
Estimated Monthly Visits (Millions)
Source: Disfold, Top 10 e-commerce sites in Canada 2019
5.10. Logistics
Logistics support for e-commerce is very well developed in Canada, with UPS, DHL, Fedex and Canada Post (and its subsidiary Purolator) taking leading roles in parcel delivery. As 90% of Canada’s population lives within 100 miles (approx. 161 km) of the US border, a large proportion of fulfilment activities will take place in the US.
5.11. On-Line Payment
Several methods for collection are available to on-line retailers, including e-Wallets, Interac Online and PayPal, along with prepaid cards or vouchers. Visa and Mastercard are the most widely accepted credit cards, with some merchants also accepting American Express.88
5.12. Challenges
EU companies looking to sell to Canadian businesses and consumers over the internet will need to have pricing in Canadian dollars. While English is used outside of Québec, EU suppliers wishing to sell in Québec will also need a French language website. If selling in Québec, English and French customer service is also essential.
In addition, EU suppliers should attempt to package their products in a way that maximise the reasons for which Canadians choose their retailers (as discussed above). This is even more important given rising demand for products from Canadian retailers.
As previously stated in the telecommunications section of this report, a challenge for the e-commerce sector is the lack of broadband connection in rural and remote areas of Canada. Also, many Canadians do not have affordable access.
5.13. CETA Chapter 16
Chapter 16 covers any business or transaction done electronically. It goes beyond the online purchase of goods; it also covers the provision of online services. For example, it highlights the importance of using electronic signatures, signing electronic contracts and consumer protection for electronic commerce.89
CETA recognises that e-commerce increases economic growth and trade opportunities in many sectors and has confirmed the applicability of the WTO rules.
88 https://www.finder.com/using-a-credit-card-in-canada89 CETA Chapter by Chapter - https://ec.europa.eu/trade/policy/in-focus/ceta/ceta-chapter-by-chapter/
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The EU and Canada have agreed to promote the development of e-commerce between them, in particular by cooperating on the issues raised by e-commerce under the provisions in Chapter 16. Both acknowledge that the future of e-commerce depends on consumers’ and businesses’ confidence in its security.
Key provisions include:
• Banning the imposition of customs duties, fees, or charges on electronic transmissions between Canada and the EU; • Internal taxes and charges may still be charged, provided they are consistent with CETA’s other chapters;• Trust and confidence: each party should adopt rules ensuring that personal information on the internet is protected, in line with
international data protection standards; • General provisions:
o Highlight the importance of specific aspects of e-commerce:o clarity and transparency in domestic regulations;o promotion of interoperability, innovation and competition in e-commerce; ando facilitating use of e-commerce by SMEs;
• Ongoing cooperation and dialogue on challenges raised by e-commerce (like verification of online signatures, liability of suppliers for transmission/storage of information, dealing with spam, protection of consumers from fraudulent and deceptive commercial practices). It includes information exchanges between EU and Canada on current e-commerce laws and enforcement practices.
5.14. Opportunities
Given the low uptake on e-commerce as a percentage of retail sales (in comparison with the EU) there are opportunities for EU firms to supply Canadian retailers with the latest technology and innovation.
Canada is a highly developed ‘plugged-in’ market with the vast majority of people having access to high-speed internet, making it a market ripe for EU suppliers to expand.
There is a large potential audience with which to build a customer base. According to Canada Post, Canada’s e-commerce market is growing and is not yet mature, with double digit annual growth over the next five years.
5.15. Trade Associations
• Retail Council of Canada• The Canadian Internet Registration Authority (CIRA) • Retail Insider
5.16. Case Studies
▶ ColisExpat for Zalando and European Deliveries
Zalando is a German e-retailer specialising in the sale of shoes and clothes, but it sells over 150,000 items. However, they ran into a problem when customers wanted to order items to a country where Zalando does not have a physical presence. They have partnered with e-commerce French company ColisExpat to solve this problem.
ColisExpat – a trademark of the IMX France Group - specialises in parcel delivery. For more than 20 years IMX has been proving its worth as a high-quality worldwide postal distributor in a sector that is virtually monopolised by traditional national operators. The group has expanded on four main market segments: press, direct marketing, corporate mail and parcels. With its very own independent international sorting center in France, which to date is the only one of its kind, IMX benefits from an international distribution network and a logistics organisation which enable it to offer competitive and high-quality services.
The way it works: ColisExpat will receive Zalando purchases in one of their secured warehouses, store them, repack them if desired and deliver them to customers anywhere in the world. This service, while it has been an excellent way for Zalando to receive orders from Canada, is available to other EU suppliers who wish to expand their e-commerce platform without necessarily having a physical presence in Canada. ColisExpat provides logistical support to e-commerce companies looking to expand their footprint in Canada who want to take advantage of CETA.
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▶ Nortal
Nortal is a multinational strategic change and technology company that was started in Estonia in 2000. It combines strategy, long-term business sector know-how and data-driven solutions to simplify and optimise complex processes for efficiency, sustainability and agility. It creates better seamless services in the telecom sector, builds electronic identities and digitalises healthcare systems to help hospitals offer better care.
The company has operations in 10 countries, employing 850 professionals worldwide. With revenue over €85M (40% of business outside of EU), e-commerce stands for roughly 10% of Nortal revenue.
Nortal is working on numerous e-commerce projects in Northern Europe and Canada, creating an exchange of technology and subject matter expertise in digital commerce. Nortal is one of the largest partners with Elastic Path, a leading Canadian e-commerce solution company. This partnership has involved multiple projects in Europe, including in the Netherlands, Sweden, Finland, Switzerland and the United Kingdom.
Furthermore, in partnership with German leading e-commerce software company Intershop, Nortal helps an international athletic apparel retailer headquartered in Vancouver, British Columbia, achieve strategic change and build better customer experiences. It is a global brand with a significant online presence and retail locations across Canada, Asia, Australia, the EU and the United States.
Nortal entered the U.S. market in 2016 and expanded its footprint further in 2018 with the acquisition of the U.S. cloud engineering company Dev9, based in Seattle. Having operations in Washington State also makes it easier to service Canadian clients in British Columbia (just across the U.S.–Canadian border).
Being a fast-growing company with established partnerships and looking more seriously toward Canada to expand the business, Nortal finds the improved access and opportunities through CETA encouraging. According to Nortal, the advantages of CETA significantly support the outlook for establishing a steady presence in Canada.
40CETA and Services Report
Q&AQ. Does an EU company charge taxes (like a VAT) for online sales to Canada?
A. VAT is not charged for online sales in Canada.
Q. Do I need a .CA Domain?
A. The Canadian Internet Registration Authority manages the .CA domains. Foreign investors in Canada are encouraged to set up a Canadian internet identity, as Canadians prefer to buy from Canadian companies and are very familiar with the .CA domain.
Q. What regulatory bodies are responsible for the regulation of e-commerce, data protection and internet access tariffs and charges?
A. E-commerce businesses are regulated by the same agencies that regulate other businesses. They can expect to engage with federal agencies such as the Competition Bureau, the Canadian Radio-Television and Telecommunications Commission (notably with respect to anti-spam laws), the Canadian Intellectual Property Office and the Office of the Privacy Commissioner of Canada, as well as authorities at the pro-vincial level, such as provincial privacy commissioners (where provincial privacy laws apply) and securities commissions.
Q. What regulatory and procedural requirements govern the establishment of e-commerce businesses in Canada? To what extent do these requirements and procedures differ from those governing the establishment of brick-and-mortar businesses?
A. No special legal requirements apply to the establishment of a digital business in Canada. Like all busi-nesses, digital businesses must:
• register their business name;• comply with regulations; and• obtain licences and permits relating to the goods that they sell.
If they wish to incorporate in Canada, they may do so under any federal, provincial or territorial business corporations act.
5.17. Canadian Policy and Legislation
The digital and the data economies are areas of rapid policy development, with anticipated legislative changes. The introduction of Canada’s Digital Charter in May 2019 set the policy tone for a government-wide approach to ensure that Canadians can trust new digital technologies, and that their personal data will be kept secure.
In Canada, electronic commerce legislation is generally considered to be a matter of provincial jurisdiction and all of the provincial and territorial legislatures have enacted e-commerce legislation to address certain contractual formalities and procedural aspects of the formation of contracts. As such, EU companies must be aware of the laws that apply in the particular province or territory in which they conduct business.
At the federal level, there are three laws that govern the protection of personal information:
• Canada’s Anti-Spam Law (CASL) came into force on July 1, 2014 and applies to all electronic messages (including email and texts) sent to encourage commercial activity. Canadian and global organisations sending commercial electronic messages (CEMs), from, to or within Canada, must receive consent from recipients before sending messages. CASL does not apply to CEMs routed through Canada. CASL protects consumers and businesses from the misuse of digital technology.
• Personal Information Protection and Electronic Documents Act (PIPEDA) is a federal private-sector privacy law. It sets out the ground rules for how all private sector organisations collect, use or disclose personal information in the course of commercial activities.
• Privacy Act, covers the personal information-handling practices of federal government departments and agencies.
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CETA has opened a suite of opportunities for EU services suppliers looking to grow or establish a presence in Canada. It has reduced many barriers that previously existed and contains chapter specific commitments for many services sectors where European suppliers are world leaders. With the overview presented in this guide of doing business in Canada, combined with where certain opportunities lie in the Canadian services market, EU suppliers should look to the opportunities presented by CETA to further enhance their footprint in Canada.
6. CONCLUSION
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FEDERALAccounting: Chartered Professional Accountants of Canada (CPA) or CPA Canada National organisation established to support a unified Canadian accounting profession, amalgamating Canada’s previous CA, CGA and CMA designations.
Internationally trained accountants can contact the CPA licensing body in your province to find out how you can become licensed as a CPA in Canada. *Note the CPA designation is different from CPA designations in the U.S. and other countries.
Architecture: Canadian Architectural Certification Board is the national certification board of the architecture profession. It offers useful information for internationally trained professionals as part of its Broadly Experienced Foreign Architect Program (BEFA).
Legal: Federation of Law Societies of Canada The federation covers Canada’s 14 provincial and territorial law societies in collective practice and implementation entirely independent from the Canadian government.
National Committee on AccreditationThe NCA Assesses the legal education and professional experience of individuals who obtained their credentials outside of Canada or in a Canadian civil law program.
Engineering: None. To be a professional engineer (P.Eng.) in Canada, you need to become licensed by a Canadian provincial
or territorial engineering association. You can still work in engineering before being licensed if you are supervised by a professional engineer (P.Eng.)
ALBERTA Accounting: CPA AlbertaArchitecture: The Alberta Association of Architects (AAA)Legal: Law Society of AlbertaEngineering: Association of Science and Engineering Technology Professionals of Alberta
BRITISH COLUMBIA Accounting: CPA British Columbia Architecture: Architectural Institute of British Columbia (AIBC)Legal: Law Society of British ColumbiaEngineering: Engineers and Geoscientists British Columbia
MANITOBA Accounting: CPA Manitoba Architecture: Manitoba Association of ArchitectsLegal: Law Society of ManitobaEngineering: Association of Professional Engineers and Geoscientists of the Province of Manitoba
ONTARIOAccounting: CPA OntarioArchitecture: Ontario Association of Architects (OAA)Legal: The Law Society of OntarioEngineering: Association of Professional Geoscientists of Ontario and Professional Engineers Ontario
NEW BRUNSWICK Accounting: CPA New Brunswick Architecture: Architects’ Association of New Brunswick (AANB)Legal: Law Society of New BrunswickEngineering: Engineers and Geoscientists New Brunswick
NEWFOUNDLAND AND LABRADOR Accounting: CPA Newfoundland and Labrador Architecture: Newfoundland and Labrador Association of ArchitectsLegal: Law Society of Newfoundland and LabradorEngineering: Professional Engineers and Geoscientists Newfoundland and Labrador
NORTHWEST TERRITORIES AND NUNAVUT Accounting: CPA Northwest Territories and Nunavut Architecture: Northwest Territories Association of Architects (NWTAA)Legal: Law Society of Northwest Territories and Law Society of NunavutEngineering: Northwest Territories and Nunavut Association of Professional Engineers and Geoscientists
NOVA SCOTIA Accounting: CPA Nova Scotia Architecture: Nova Scotia Association of Architects (NSAA)Legal: Nova Scotia Barristers’ SocietyEngineering: Engineers Nova Scotia
7. RESOURCES FOR EU COMPANIES
Table 2. List of Professional Services Regulatory Bodies in Canadian Jurisdictions
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PRINCE EDWARD ISLANDAccounting: CPA Prince Edward IslandArchitecture: Architects Association of Prince Edward Island (AAPEI)Legal: Law Society of Prince Edward IslandEngineering: Engineers PEI
QUÉBEC Accounting: CPA Québec
Architecture: Ordre des Architectes du Québec (OAQ)Legal: Barreau du Québec and Chambre des notaires du QuébecEngineering: Ordre des ingénieurs du Québec
SASKATCHEWAN Accounting: CPA SaskatchewanArchitecture: Saskatchewan Association of Architects (SAA)Legal: Law Society of Saskatchewan
Engineering: Association of Professional Engineers and Geoscientists of Saskatchewan
YUKON Accounting: CPA Yukon Architecture: N/ALegal: Law Society of YukonEngineering: Engineers Yukon
EUROPEAN UNIONDelegation of the European Union to Canada150 Metcalfe Street, Suite 1900, K2P 1P1, Ottawa, Ontariohttps://eeas.europa.eu/delegations/canada_en [email protected] Tel. (1) 6132386464
European Union Chamber of Commerce in Canada (EUCCAN)622 College Street, Suite 201F, M6G 1B6, Toronto, Ontariohttps://euccan.com/[email protected]
AUSTRIAAustrian Embassy in Ottawa445 Wilbrod Street, K1N 6M7, Ottawa, Ontariohttps://www.bmeia.gv.at/en/embassy/ottawa.html [email protected] Tel. (1) 6137891444
Austrian Honorary Consulate General in Toronto30 St. Clair Avenue West Suite 607, M4V 3A1, Toronto, Ontario
[email protected]. (1) 4169674867
Austrian Chamber of Commerce (Austrian Trade Delegation)2 Bloor Street West, Suite 400, ON M4W 3E2, Toronto, [email protected]. (1) 4169673348
Austrian Federal Economic ChamberWirtschaftskammer Österreich, WKÖRobert-Graf-Platz 1 7000 Eisenstadtwww.wko.at/[email protected]. +43 5 90 907 2000
Advantage Austria TorontoConsulate General of Austria —Commercial Section Advantage Austria30 St Clair Avenue West, Suite 1402, Toronto,Ontario, M4V 3A1www.advantageaustria.org/[email protected]. +1 [email protected]. +1 5148493708
BELGIUM Belgian Embassy in Ottawa60 Albert Street, 8th floor, Suite 820, K1R 7X7, Ottawa, Ontariohttp://canada.diplomatie.belgium.be/[email protected]. (1) 6132367267
Belgian Consulate General in Montreal1000, rue Sherbrooke Ouest - Suite 1400, H3A 3G4, Montrealhttps://canada.diplomatie.belgium.be/[email protected]. (1) 5148497394
Belgian Chamber of Commerce (Belgian Canadian Business Chamber)508-161 Bay Street, 27th Fl, M5J 2S1, Toronto, Ontariohttp://[email protected]. (1) 4168169154
AWEX — Wallonia Foreign Trade and Investment AgencyAgence wallonne à l’Exportation et auxInvestissements Etrangers
Place Sainctelette, 2 1080 Bruxelleshttp://www.awex.be/fr
Bruxelles Invest & ExportChaussée de Charleroi 110, 1060 Bruxelleshttps://hub.brussels/fr/bruxelles-invest-export/Tel. 02 422 00 20
Flanders TradeBoulevard Roi Albert II 37, 1030 Bruxelles,Belgiumwww.flandersinvestmentandtrade.com/export/[email protected] Tel. +32 2 504 87 11
Flanders/Wallonia/BrusselsTrade rep. for Ontario, Manitoba2 Bloor Street West — Suite 2508, Toronto,Ontario, M4W 3E2https://canada.diplomatie.belgium.be/en/[email protected] Tel. +1 416515-7777
Trade rep. for British Columbia, Alberta,Saskatchewan, Yukon and Northwest221 West Esplanade (Suite 412), North
Table 3. Relevant EU institutions, Embassies, Consulates and Chambers of Commerce for EU companies
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Vancouver, British Columbia, V7M3J3https://canada.diplomatie.belgium.be/en/[email protected] Tel. +1 7789973758
FlandersTrade rep. for Quebec, Newfoundland andLabrador, Nunavut, New Brunswick, NovaScotia, Prince Edward Island999 Boulevard de Maisonneuve West — Suite1600, Montréal (Québec) H3A 3L4https://canada.diplomatie.belgium.be/en/[email protected] Tel. +1 514289-9955
WalloniaTrade rep. for Quebec, Newfoundland andLabrador, Nunavut, New Brunswick, NovaScotia, Prince Edward Island1250 René-Lévesque West — Suite 4115,Montréal, Québec, H3B 4W8https://canada.diplomatie.belgium.be/en/[email protected] Tel. +1 514939-4049
BrusselsTrade rep. for Quebec, Newfoundland andLabrador, Nunavut, New Brunswick, NovaScotia, Prince Edward Island1010 Sherbrooke West — Suite 2404,Montreal, Quebec, H3A 2R7https://canada.diplomatie.belgium.be/en/[email protected] Tel. +1 514286-1581
BULGARIA Bulgarian Embassy in Ottawa325 Stewart Street, K1N 6K5, Ottawa, Ontariohttps://www.consul.info/en/embassy-bulgaria- [email protected]. (1) 613893215
Bulgarian Consulate General in Toronto65 Overlea Blvd, Suite 230, ON M4H 1P1, Torontohttps://www.bgconsultoronto.info/[email protected]. (1) 416 696 242
Bulgarian Chamber of Commerce (Canada Bulgaria Business Network)6 Hillholm Rd #1, M5P 1M2, Toronto, Ontariohttp://www.canadabulgaria.com/[email protected] Bulgarian Small and MediumEnterprises Promotion2-4 Lege Str., 1000 Sofia, [email protected]. +359 2 940 7940
The Bulgarian Small and MediumEnterprises Promotion2-4 Lege Str., 1000 Sofia, [email protected]. +359 2 940 7940
CROATIA Croatian Embassy in Ottawa229 Chapel St, K1N 7Y6, Ottawa, Ontariohttp://ca.mvep.hr/en/[email protected]. (1) 6135627820
Croatian Consulate General in Mississauga918 Dundas Street East, Suite 302, L4Y 2B8, Mississauga, Ontariohttp://ca.mvep.hr/en/[email protected]. (1) 905277905
Croatian Chamber of Commerce630 The East Mall, M9B 4B1, Etobicoke, Ontariohttps://croat.ca/[email protected]. (1) 4166412829
Export portal Izvozni portalTrg N.Š. Zrinskog 7-8, 10 000 Zagrebhttps://izvoz.gov.hr/[email protected]
CYPRUSCyprus Embassy in Ottawa150 Metcalfe Street, Suite 1002, K2P 1P1, Ottawa, Ontariohttp : / /www.mfa .gov.cy /mfa/consu late /consulate_toronto.nsf/dmlindex_en/[email protected]. (1) 6135639763
Cyprus Honorary Consulate in Coquitlam 435 Donald Street, V3K 3Z9, Coquitlam, British Columbiahttp://www.mfa.gov.cy/mfa/consulate/consulate_toronto.nsf/dmlconscanada_en/[email protected]. (1) 6049362268
Cyprus Chamber of Commerce38, Grivas Dhigenis Ave., Deligiorgis Str., PO
Box 21455, 1509 Nicosiahttps://ccci.org.cy/[email protected]. (1) 35722889800
Trade ServiceΥπηρεσία Εμπορίουwww.mcit.gov.cy/mcit/trade/ts.nsf/index_gr/index_%20gr?OpenDocument
CZECH REPUBLIC Czech Embassy in Ottawa251 Cooper Street, K2P 0G2, Ottawa, Ontariowww.mzv.cz/ottawahttp://www.mzv.cz/ottawa/en/[email protected] Tel. (1) 6135623875
Consulate General of the Czech Republic2 Bloor Street West, Suite 1500, M4W 3E2, Toronto, Ontariowww.mzv.cz/[email protected] Tel. (1) 416972147616
Czech Chamber of Commerce (Czech Business Association of Canada)300-340 Midpark Way SE, T2X 1P1, Calgary, Alberta,http://www.cbaconline.ca/Tel. (1) 4032645150
National Trade Promotion Agency of theMinistry of Industry and Trade of theCzech RepublicCzechTrade — Česká agentura na podporuobchoduDittrichova 21, 128 01 Praha 2https://www.czechtrade.cz/sluzby Tel. +420 224 907 576
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CzechTrade Canada6707 Elbow Drive SW, T2V0E5 Calgary,Alberta, T2H 0S7https://www.czechtradeoffices.com/en/[email protected] [email protected] Tel. +1 4032694924
DENMARK Danish Embassy in Ottawa47 Clarence Street, Suite 450, K1N 9K1, Ottawa, Ontariohttp://canada.um.dk/[email protected]. (1) 6135621811
Danish Trade Council in Ottawa47 Clarence Street, Suite 450, K1N 9K1, Ottawa, Ontariohttps://canada.um.dk/en/the-trade-council/[email protected] Tel. (1) 4166407481
Danish Canadian Chamber of Commerce2 Bloor Street West, Suite 2109, M4W 3E2, Toronto, Ontariohttps://[email protected]
Ministry of Foreign Affairs of DenmarkUdenrigsministeriet EksportrådetAsiatisk Pl. 2, 1448 København, Denmarkhttp://um.dk/da/eksportraadet/ [email protected] Tel. +4533921435
Trade Council of Denmark2 Bloor Street West, Suite 2120, Toronto,Ontario, M4W 3E2
http://canada.um.dk/en/the-trade-council/invest-in-denmark/[email protected] Tel. +1 416962-5661
ESTONIAEstonian Embassy in Ottawa260 Dalhousie Street, Suite 210, K1N 7E4 , Ottawa, Ontariohttps://vm.ee/en/[email protected]. (1) 6137894222
Estonian Consulate in Toronto958 Broadview Avenue, Suite 202, M4K 2R6, Toronto, [email protected] Tel. (1) 4164610764
Estonian Chamber of Commercec/o 956 Broadview Avenue, M4K 2R4, Toronto, Ontariohttp://canestchamber.com/[email protected]. (1) 4162345678910
Enterprise Estonia (EAS)Ettevõtluse Arendamise Sihtasutus (EAS)Lasnamäe 2, 11412 Tallinnwww.eas.ee/ [email protected] Tel. +372 6 279 700
FINLAND Finland Embassy in Ottawa55 Metcalfe Street, Suite 850, K1P 6L5, Ottawa, Ontariohttps://finlandabroad.fi/web/can/frontpage
[email protected] Tel. (1) 6132882233
Honorary Consulate of Finland in Toronto1200 Bay Street, Suite 301, M5R 2A5, Toronto, [email protected] Tel. (1) 4169640066
Finish Chamber of Commerce191 Eglinton Avenue East, M4P 1K1, Toronto, Ontariohttps://canadafinlandcc.com/[email protected]. (1) 4164861533
FinproBusiness Finland Porkkalankatu 1 Helsinkiwww.finpro.fi/ Tel. +358 295055000
FRANCEFrench Embassy in Ottawa42 Sussex Drive, K1M 2C9, Ottawa, Ontariohttps://ca.ambafrance.org/[email protected]. (1) 6137891795
General Consulate of France in Toronto2 Bloor Street East, Suite 2200, M4W 1A8, Toronto, Ontariohttps://toronto.consulfrance.org/[email protected] Tel. (1) 8077009888
France Canada Chamber of Commerce2 Bloor Street East, Suite 2200, M4W 1A8, Toronto, Ontariohttp://www.fccco.org
[email protected]. (1) 647291136
Business Francewww.businessfrance.fr Multiple European Offices
Trade Representative in Canada:Business FranceToronto: 154 University Avenue Suite 400,Toronto, M5H 3Y9Tel. +1 4169771257
Montreal: Bureau Business France, 1501McGill College, Bureau 1120, Montreal, QCH3A 3M8Tel. +1 5146704000
Vancouver: 1111 Melville Street, Suite 320Vancouver, British Columbia V6E 3V6www.businessfrance.fr/contact [email protected] Tel. +1 6046390923
GERMANYGerman Embassy in Ottawa1 Waverley Street, K2P 0T8, Ottawa, [email protected]. (1) 6132321101
German Consulate General in Montreal1250 Bd Rene Levesque O #4315, H3B 4W8, Montréal, Québechttps://canada.diplo.de/[email protected] Tel. (1) 5149312431
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German Chamber of Commerce480 University Avenue, Suite 1500, M5G 1V2, Toronto, [email protected]. (1) 4165983355
Germany Trade and Invest (GTAI)Friedrichstrasse 60, 10117 Berlinwww.gtai.de/gtai-en Tel. +49 30 200 099 0
GREECEGreek Embassy in Ottawa80 MacLaren Street, K2P 0K6, Ottawa, Ontariohttp://www.agora.mfa.gr/en/offices-of-economic-and-commercial-affairs/[email protected]. (1) 6132386271
Greek Consulate General in Toronto1075 Bay Street, Suite 600, M5S 2B1, Toronto, Ontariohttps://www.mfa.gr/canada/en/[email protected] Tel. (1) 4165150133
Greek Chamber of Commerce380 St -Antoine West, Suite 6000, H2Y 3X7, Montreal, Québechttps://hbotmontreal.com/[email protected]
Enterprise Greece Invest and Trade109 Vasilissis Sophias Avenue, 115 21Athens, Greecewww.enterprisegreece.gov.gr/[email protected]
Tél. +30 210 335 5700
HUNGARYHungarian Embassy in Ottawa299 Waverley St., K2P 0V9, Ottawa, Ontariohttps://ottawa.mfa.gov.hu/[email protected]. (1) 6132307560
Hungarian Consulate General in Toronto175 Bloor Street East, Suite 1109, South Tower, M4W 3R4, Toronto, Ontariohttps://www.kormany.hu/hu/[email protected] Tel. (1) 6473492550
Hungarian Chamber of Commerce8750 Jane St. unit 12, L4K 0E7, Concord, Ontariohttp://www.hcba-canada.org/[email protected]. (1) 9057383834
Hungarian Investment Promotion AgencyH-1055 Budapest, Honvéd u. 20.www.hipa.hu/[email protected] Tel. +36 1 872 6520
IRELANDIrish Embassy in OttawaVarette Building, 130 Albert St, K1P 5G4, Ottawa, Ontariohttps://www.dfa.ie/irish-embassy/canada/about-us/team-ireland/[email protected]. (1) 6132336281
Consulate General of Ireland in Vancouver999 World Trade Centre, Suite 704, V6C 3E1, Vancouver, British Columbiahttps://www.dfa.ie/irish-consulate/vancouver/Tel. (1) 6046963263
Irish Chamber of Commerce101-1001 Wst Broadway, Suite 164, Vancouver, British Columbiahttps://icccvan.ca/[email protected]. (1) 6047307883
Enterprise IrelandEast Point Business Park The Plaza Dublin 3D03 E5R6https://www.enterprise-ireland.com/en/Export-Assistance/[email protected]. +353 (1) 7272000
Trade Representative in Canada:Enterprise Ireland2 Bloor St. W, Suite 1501, Toronto, Ontario,M4W 3E2https://www.enterprise-ireland.com/en/[email protected] [email protected] Tel. +1 4169345033
ITALYItalian Embassy in Ottawa275 Slater St, K1P 5H9, Ottawa, Ontariohttp://www.ambottawa.esteri.it/ambasciata_ottawa/[email protected]. (1) 6132322401
Consulate General of Italy in Toronto136 Beverley Street, M5T 1Y5, Toronto, Ontariohttps://constoronto.esteri.it/Consolato_Toronto/it/[email protected] Tel. (1) 4169771566
Italian Chamber of Commerce of Ontario622 College Street Suite, 201F, M6G 1B6, Toronto, Ontariohttps://[email protected]. (1) 4167897169
Italian Trade AgencyICE — Agenzia per la promozione all’estero el’internazionalizzazione delle imprese italianeVia Liszt, 21 - 00144 Romewww.ice.it/en/Tel. +39 06 59921
Italian Trade Promotion Agency of theConsulate General of Italy365 Bloor Street East, Suite 1802, Toronto,Ontario, M4W [email protected] Tel. +1 41659815661000 rue Sherbrooke ouest, Bureau 1720,Montreal, Quebec, H3A [email protected]. +1 5142840265
LATVIALatvian Embassy in Ottawa350 Sparks St, K1R 7S8, Ottawa, Ontariohttp://www.mfa.gov.lv/en/[email protected]. (1) 6132386014
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Consulate General of Latvia in Montreal3955 Latvian Centre Provost Lachine, H8T 1M1, Montreal, Qué[email protected] Tel. (1) 5144220562
Latvian Chamber of Commerce (Latvian Canada Business Council)4 Credit Union Drive, M4A 2N8, Toronto, Ontariohttp://www.latcan.org/[email protected]. (1) 7056563541
Investment and Development Agency ofLatviaLatvijas Investīciju un attīstības aģentūraPērses iela 2, Rīgahttp://eksports.liaa.gov.lv/[email protected] Tel. +371 68803505
LITHUANIALithuanian Embassy in Ottawa150 Metcalfe Str #1600, K2P 1P1, Ottawa, Ontariohttps://ca.mfa.lt/ca/en/[email protected]. (1) 6135675458
Lithuanian Honorary Consulate in Toronto1573 Bloor Street West, M6P 1A6, Toronto, [email protected]. (1) 4165382992
Enterprise LithuaniaA. Goštauto st. 40 A, LT-03163 Vilnius, Lithuaniawww.enterpriselithuania.com/en
[email protected] Tel. +370 (5) 249 90 83
LUXEMBOURG Luxembourg Honorary Consulate in Ottawa45 World Exchange Plaza, O’Connor Street, Suite 1150, K1P 1A4, Ottawa, Ontariohttps://www.consulate-info.com/consulate/25427/[email protected] Tel. (1) 6137554091
Luxinnovation5, AVENUE DES hauts Fourneaux L-4362Esch-sur-Anette, [email protected] Tel. +352 43 62 63-1
MALTA Malta Consulate General in Toronto3300 Bloor St W, M8X 2X3, Etobicoke, Ontariohttps://foreignandeu.gov.mt/mt/Pages/[email protected]. (1) 4162070922
Malta EnterpriseMalta Enterprise Corporation GwardamangiaHill, Pietà MEC 0001 Maltawww.maltaenterprise.com/support/[email protected] Tel. +356 2542 0000
NETHERLANDSDutch Embassy in Ottawa350 Albert Street, Suite 2020, K1R, 1A4, Ottawa, Ontariohttps://www.netherlandsandyou.nl/your-country-and-the-netherlands/canada/[email protected]. (1) 6132375031
Dutch Consulate General in Toronto1 Dundas Street West, Suite 2106, M5G 1Z3, Toronto, Ontariohttp://[email protected]. (1) 416 595 2402
Dutch Chamber of Commerce69 Hazelton Ave, M5R 2E3, Toronto, Ontariohttp://[email protected]. (1) 4167575523
Netherlands Enterprise AgencyRijksdienst voor Ondernemend NederlandPr. Beatrixlaan 2, 2595 AL Den Haag, Netherlandswww.rvo.nl/onderwerpen/internationaalondernemen http://english.rvo.nl/topics/internationalTel. +31 70 379 80 00
Ondernemersplein — an online portal forforeign and Dutch start-upsBusiness Gov. NetherlandsKamer van Koophandel P.O. Box 48 3500 AAUtrechthttps://[email protected]
POLAND Polish Embassy in Ottawa443 Daly Ave, K1N 6H3, Ottawa, Ontariohttp://[email protected]. (1) 6137890468
Polish Consulate General in Vancouver1177 West Hastings Street, Suite 1600, V6E 2K3, Vancouver, British [email protected] Tel. (1) 6046883458
Polish Chamber of Commerce2680 Matheson Boulevard East, Suite 102, L4W 0A5, Mississauga, Ontariohttp://www.canada-poland.com/[email protected]. (1) 416 871 1938
Polish Investment and Trade Agency(former Polish Information and ForeignInvestment Agency)Polska Agencja Inwestycji i Handluwww.paih.gov.pl [email protected] President’s Secretariat:Tel. +48 223349871Foreign Investment Department:Tel. +48 223349875Department of Economic Development:Tel. +48 223349820Economic Promotion Department:Tel. +48 223349926Information and Communication Department:Tel. +48 223349994
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Polish Investment and Trade Agency inToronto438 University Avenue, Suite 1810, Toronto,Ontario, M5G 2K8https://canada.trade.gov.pl [email protected] Tel. +48 223349999
PORTUGALPortuguese Embassy in Ottawa645 Island Park Dr, K1Y 0B8, Ottawa, Ontariohttps://www.otava.embaixadaportugal.mne.pt/en/[email protected]. (1) 6137290883
General Consulate of Portugal in Toronto438 University Avenue, M5G 2K8, Toronto, Ontariohttp://cgptoronto.blogspot.com/[email protected] Tel. (1) 4162170966
Portuguese Chamber of Commerce1136 College Street, M6H 1B6, Toronto, Ontariohttp://www.fpcbp.com/[email protected]. (1) 4165378874
aicep Portugal Global — Trade andInvestment Agency1, Rue de Noisiel, 75116 Paris FRANCEwww.portugalglobal.pt/PT/Internacionalizar/Paginas/MenuInternacionalizar.aspx [email protected] Tel. +331 45054410
Trade and Investment Agency: aicep Toronto438 University Avenue, Suite 1400, Toronto,Ontario, M5G 2K8
w w w. p o r t u g a l g l o b a l . p t / E N / a b o u t - u s /ove rseas-ne twork /Pages /ARedeA i cep [email protected]. +1 4169214925
ROMANIARomanian Embassy in Ottawa655 Rideau St, K1N 6A3, Ottawa, Ontariohttps://[email protected]. (1) 6137893709
Romanian General ConsulateSuite 855, 555 Burrard Street, Two Bentall Centre, V7X 1M8, Vancouver, British Columbiahttp://vancouver.mae.ro/[email protected]. (1) 6046330986
Romanian Chamber of Commerce111 Peter Street, M5V 2H1 [email protected]. (1) 4169137222
Ministry for Business Environment,Commerce and EntrepreneurshipMinisterul Economiei, Comertului, Industrieisi Mediului de Afaceri152, Victoriei blvd. 010096 Bucuresti Romaniahttp://imm.gov.ro Tel. 0751.513.210
InvestRomania152 Calea Victoriei Street, 1st District,Bucharest, postal code 010096http://investromania.gov.ro/web/[email protected] [email protected]
SLOVAKIASlovak Embassy in Ottawa50 Rideau Terrace, K1M 2A2, Ottawa, Ontariohttps://www.mzv.sk/web/ottawa-en/[email protected]. (1) 6137494442
Consular Office of the Slovak Republic in Newmarket649 Brooker Ridge, L3X 1V7, Newmarket, Ontariohttps://www.mzv.sk/web/[email protected]. (1) 6472909304
Sario — Slovak Investment and TradeDevelopment AgencySlovenská agentúra pre rozvoj investícií a obchoduTrnavská cesta 100 821 01 Bratislava SlovakRepublicwww.sario.sk/sk/[email protected]@sario.sk Tel. +421 2 58 260 100
SLOVENIASlovenian Embassy in Orttawa150 Metcalfe Street, Suite 2200, K2P 1P1, Ottawa, Ontarioh t t p : / / w w w . o t t a w a . e m b a s s y .s i / ? f b c l i d = I w A R 1 x m N O D J p g j 5 t _qjE7ULSuQ4TZWF9HAjrXduCYT9KGTooMrJh_hpD59Mqksloembassy.ottawa@gov.siTel. (1) 6135655781
Slovenian Consulate General in TorontoCanada - 747 Browns Line, 2nd Floor,
(Etobicoke), L4Z 1S2, Mississauga, Toronto, Ontariowww.mzz.gov.si/en/representations_abroad/[email protected]. (1) 4162018307
Slovenian Chamber of Commerce5096 S Service Rd Suite 102, Burlington, ON L7L 5H4, Canadahttps://[email protected]. (1) 2897870593
SPIRIT Slovenia — Public Agency forEntrepreneurship, Internationalization,Foreign Investments and TechnologySektor za spodbujanje internacionalizacijeVerovškova 601000 Ljubljanawww.izvoznookno.si/[email protected]. 01 5891870
SPAINSpanish Embassy in Ottawa74 Stanley Ave, K1M 1P4, Ottawa, Ontariohttp://www.exteriores.gob.es/embajadas/ottawa/en/Pages/[email protected]. (1) 6137472252
Spanish Consulate in Toronto2 Bloor Street East, Suite 1201, ON M4W 1A8, Toronto, Ontariohttp://www.exteriores.gob.es/Consulados/TORONTO/en/Consulado/Pages/[email protected] Tel. (1) 4169771661
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Spanish Chamber of Commerce1117, Ste-Catherine West, Suite 907, H3B 1H9, Montreal, Québechttp://www.espcan.ca/[email protected]. (1) 5148769797
ICEX — Spanish Institute for Foreign TradeICEX España Exportación e InversionesPaseo de la Castellana, 278, 28046 Madrid, Spainwww.icex.es/icex/es/navegacionprincipal/exportadores-habituales/index.html Tel. +34 913497100
Economic and Commercial Office151 Slater Street, Suite 801, Ottawa, Ontario,K1P 5H3http://[email protected]. +1 6132360409
Toronto Trade Promotion Office170 University Ave #602, Toronto, Ontario,M5H 3B3http://canada.oficinascomerciales.es [email protected] Tel. +1 4169670488
SWEDENSwedish Embassy in Ottawa377 Dalhousie Street, Suite 305, K1N 9N8, Ottawa, Ontariohttps://www.swedenabroad.se/en/embassies/canada-ottawa/contact/[email protected]. (1) 6132448200
Swedish Consulate General in Montrealc/o BCF Business Law, 1100 René-Lévesque Blvd, West, 25th floor, H3B 5C9, Montreal, Québechttps://www.swedenabroad.se/en/embassies/canada-ottawa/[email protected] Tel. (1) 5143976703
Swedish Chamber of Commerce2 Bloor Street West, Unit 2109, M4W 3E2, Toronto, Ontariohttp://www.sccc.ca/[email protected]. (1) 416925866
Business Sweden — The Swedish Tradeand Investment CouncilWorld Trade Center Klarabergsviadukten 70111 64 Stockholm (Postadress Box 240101 24 Stockholm)www.business-sweden.se/Export/tjanster/ [email protected] Tel. +46 858866000
Trade Representative in Canada:Business Sweden2 Bloor Street West, Suite 2120, TorontoOntario M4W 3E2https://www.business-sweden.com/markets/americas/canada/[email protected] Tel. +1 416922815
50 CETA and Services Report
The European Union www.europa.eu
The European Commission www.ec.europa.eu
Delegation of the European Union to Canada www.eeas.europa.eu/delegations/canada
Contact the CETA Programme Team via email at [email protected]
This guide has been commissioned by the EU Delegation to Canada in the context of the CETA Market Access for EU business project funded by the Partnership Instrument of the EU.
It has been developed with the assistance of Noah Arshinoff, Independent Consultant – Canada.
The content of this publication does not reflect the official opinion of the European Union. Responsibility for the information and views expressed therein lies entirely with the author(s). Reproduction is authorised provided the source is acknowledged.
The reuse policy of European Commission documents is regulated by Decision 2011/833/EU (OJ L 330, 12.12.2011, p.39).
© European Union, 2020
This Project is funded bythe European Union
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