About the Canada-EU trade agreement

The Canada-European Union Comprehensive Economic and Trade Agreement (CETA) will create jobs, strengthen economic relations and boost Canada’s trade with the world’s second-largest market. This landmark agreement entered into force on September 21, 2017.

CETA is a progressive free trade agreement which covers virtually all sectors and aspects of Canada-EU trade. For example, prior to CETA’s entry into force, only 25% of EU tariff lines on Canadian goods were duty-free. With CETA, 98% of EU tariff lines are now duty-free for Canadian goods. Once CETA is fully implemented, the EU will have eliminated tariffs on 99% of its tariff lines.

For Lithuanian exports to Canada, this has meant, for example, the elimination of 8 tariffs on furniture, 7.5% tariffs on wheat gluten, and 5% tariffs on some medical and optical equipment. Lithuania will also benefit from increased access to the Canadian cheese market. With CETA, two new annual import quotas for EU cheese are in place: 2,667 tonnes for non-industrial cheese and 283 tonnes for industrial cheese. Over the next five years, these volumes will grow to permanent TRQs of 16,000 tonnes and 1,700 tonnes, respectively.

Beyond tariffs, Canada’s estimated $187 billion (€132 billion) government procurement market (2015) will be of interest to Lithuanian companies, particularly opportunities at the sub-federal level. Canada’s government procurement commitments in CETA are the most ambitious the EU has ever received from any negotiating partner.

The services sector is responsible for the majority of economic activity in Canada and the EU – over 70%. CETA contains provisions on temporary entry that will facilitate the movement of contract service suppliers, investors, independent professions and business visitors.

Invest in Lithuania

Canadians have significant investment interests in Lithuania, with direct investment from Canada in Lithuania valued at €102 million at the end of 2014. Canadian firms have holdings in sectors such as real estate, retail, manufacturing and life sciences.

WHY LITHUANIA?

  • 84% proficiency in English among young professionals
  • 4th in the EU for Bachelors graduates in science, maths, computing, engineering, manufacturing, and construction
  • 3rd highest in the EU share of youth (25-29 years) with tertiary education: 52.8%

EU-wide recognition of Lithuania’s acceleration in e-government solutions offers a one-stop-shop for public information and services for business, a fast online system for the registration and payment of taxes, allowing the taxpayers file all tax returns electronically. Over 50 bilateral double taxation avoidance treaties ensure that the business environment is both convenient and cost-effective.

As an example, it only takes 24 hours to register your business using an e-signature.

From the world’s most powerful laser through to the extra-resistant glass in over 4.5 billion smartphones, Lithuanian innovation is impacting research and product development globally. Companies are currently assembling international-quality research teams here at highly competitive costs, and there is strong and committed governmental support for R&D. So it’s not surprising that Lithuania has jumped 8 places in the European Innovation Scoreboard and now ranks ahead of Poland, Hungary, Slovakia and Spain.

Lithuania combines large-scale commitment to innovation with small-scale, sector-specific tailoring. This enables it to support dynamic businesses with both generous support and an ability to adapt to niche needs. R&D expenses are fully deductible 3 times, while corporate tax can be reduced by up to 50%. And because nurturing talent is a top priority, 50% of employee training costs can be reimbursed.

Support for R&D and the tech sectors is a national priority. So much so that between 2006-2013 Lithuania spent 411 million EUR to develop its R&D infrastructure and science valleys. Another 679 million EUR is being invested towards the further enhancement of R&D capacity over the period 2014-2020.

With its buzzing cosmopolitan centres, and boundless landscapes of fresh forest and placid lakes that are never more than 30 minutes from your door, Lithuania gives you the perfect base to build a great life. And if you are bringing your family, you’ll find everything is in place to give them the start that they need.

Lithuanian cities are compact and smart, cutting your commuting time and making your everyday life more manageable. From apps to pay for parking through to smart public transport solutions like bike and car share, getting from A to B is a breeze. Plus, with world-record public WiFi speeds, you’re connected wherever you go.

  • the inhabitants of Vilnius have been surveyed as being the most satisfied people in Europe
  • Lithuania ranks 1st globally for public WiFi speed
  • Vilnius was ranked by the New York Times alongside Copenhagen, Barcelona and Capetown as a hip and well managed place to live

Bringing a family or looking to start one? Lithuania offers a broad base of education opportunities, from private kindergartens offered in a number of languages, to private secondary schools and public schools offering the world accredited International Baccalaureate program. You’ll also find a supportive and modern public health system, along with numerous private clinics and hospitals. On top of which, there is a well-developed system of after-school clubs and activities that will allow your children to develop their interests into real talents.

Last but not least, Lithuania’s highly affordable living costs will give you and your team the quality of life you deserve.

Become a member!

Join the Canadian Chamber of Commerce in Lithuania today!