The Comprehensive Trade and Economic Agreement (CETA) between the European Union and Canada should strengthen supplies of raw materials to the EU market. Once implemented, the agreement is expected to increase EU-Canada trade in goods and services by 23% and boost EU GDP by about EUR 12 billion per year, the European Commission said in a press release.
Under the agreement, export duties and other export restrictions will be generally prohibited. This is particularly important with regard to energy and raw materials for which the EU is dependent on imports and of which Canada is a major producer.
“Demand for critical raw materials is growing and that is why CETA is so essential,” Nickel Institute CEO Tim Aiken said at the workshop Europe + Canada - Raw Materials Supply, in Berlin in December. Speaking at the workshop, Aiken issued a note of caution concerning China, whom he called a sleeping giant seeking to challenge Western dominance in the competition for raw materials, and the fastest-growing economic power in the world.
“China is creating a competitive advantage by securing supplies of strategically significant raw materials through bilateral agreements with resourceful regions. At the same time, China is processing more and more while expanding engineering capacities for domestic and export markets,” Aiken said.
Also speaking at the conference, Dierk Paskert from the Raw Materials Alliance - a group of German companies aiming at ensuring security of raw materials supply for the German economy - said that Europe had experienced a price peak for rare earths, which was partly due to export quotas from China. “More recently, we made a 180-degree turn and are pleased by the extremely low prices. But what we need is a long-term strategy that offers security for the industry,” he said.
By helping secure Europe’s foothold in the international market for critical raw materials, CETA will be an important part of this long-term strategy. Following the conclusion of CETA negotiations in September, Canada and the EU are currently proceeding with legal checks and translations, aiming for the agreement to be ready for ratification in the first half of 2015.
For more information:
http://www.euractiv.com/sections/energy/germany-hopes-beat-china-ceta-race-raw-materials-310703