The Value of Citrix

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The Canada-European Free Trade Association Free
Trade Agreement (CEFTA)
St. Johns, Newfoundland June 18 2008
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INTRODUCTION

• Canada European Free Trade Association (EFTA)
  Free Trade Agreement (CEFTA)
• Signed January 26, 2008 by Minister Emerson and
  EFTA country representatives
• EFTA Iceland, Liechtenstein, Norway and
  Switzerland
• CEFTA is a first generation (goods) agreement
• Covers non-agricultural goods and select
  agricultural products
• Could be expanded to cover services and
  investment at a later date
• Helps to further position the EFTA region as a
  strategic market and a platform for Canadian
  firms to enter European supply and value chains.

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The Agreement Process

• 21 Sitting Days under Treaties Parliament
  policy expired on April 4, 2008
• Bill to implement CEFTA was tabled in House of
  Commons on May 5, 2008
• Understanding with EFTA partners that CEFTA to
  come into effect on January 1, 2009

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Key Benefits to Canadian Industry

• Increased access to some of the wealthiest and
  most sophisticated economies in the world as well
  as a platform to tap into European supply and
  value chains.
• Exporters and producers to benefit through
  elimination of duties on all non-agricultural
  goods and the elimination or reduction in tariffs
  on selected agricultural exports, while importers
  will also have better and more affordable access
  to goods from EFTA countries.
• Agricultural producers and exporters will make
  positive gains from a free trade agreement with
  EFTA by eliminating or reducing tariffs on
  certain agricultural exports from Canada and
  provide tariff reductions on a wide range of
  processed foods in all three markets
• Canadas industrial producers and exporters will
  also make positive gains from a free trade
  agreement with EFTA by eliminating tariffs on all
  non-agricultural exports to EFTA countries.

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CURRENT TRADE

• EFTA worlds 14th largest merchandise trader and
  Canadas 5th largest merchandise export
  destination.
• Two-way Canada-EFTA non-agricultural merchandise
  trade 12.6 billion (2007)
• Canadian exports 5.1 billion (2007), including
  nickel and copper, pharmaceuticals, machinery,
  precious stones and metals, medical devices,
  aluminium, aerospace products, pulp and paper,
  organic chemicals, autos and auto parts, art and
  antiques.
• Canadian imports 7.4 billion (2007), including
  mineral fuel, pharmaceuticals, organic chemicals,
  machinery, medical and optical instruments, and
  clocks and watches.
• Canadian Direct Investment Abroad 10.2 billion
  (2007)
• Foreign Direct Investment into Canada 17.4
  billion (2007)

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Key Sectors in EFTA Countries

• Iceland
• Aerospace Defence, Agriculture, Food
  Beverages, Arts Cultural Industries, Building
  Products, Consumer Products, Fish Seafood
  Products
• Norway
• Arts Cultural Industries, Environmental
  Industries (specifically renewable energies),
  Fish Seafood Products (specifically fish
  farming), Information Communications
  Technologies, Oil Gas Equipment Services
• Switzerland
• Advanced Manufacturing Technologies (incl.
  Aerospace Defence), Environmental Industries,
  Health Industries, Information Communications
  Technologies

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Current Trade with Iceland

• In 2007,
• exports amounted to 97.5 million and imports
  totalled 29.2 million.
• Main exports were fish and seafood products,
  electrical machinery and equipment, and paper and
  paperboard products,
• Main imports consisted of fish and seafood
  products, mechanical machinery and equipment, and
  inorganic chemicals.
• Investment relations are substantial relative to
  the size of Icelands economy with Canadian
  direct investments reaching 1.4 billion in 2007
• In July 2007, open skies negotiations between
  Canada and Iceland were successfully concluded
• Spring 2008 Icelandair commenced direct passenger
  flights between Reykjavik and both Toronto and
  Halifax, the only direct air link between Canada
  and the Nordic countries.

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Agriculture - specifics

• The Agreement will provide considerable gains for
  Canadas agricultural producers and exporters as
  it will eliminate or reduce tariffs on certain
  agricultural exports, including
• Durum wheat Duty free within quantitative
  limits.
• Frozen french fries tariff reduced to 46 from
  76 in Iceland and by 15 in Norway
• Beer Tariff to be cut by 50 in Switzerland
  duty-free in Norway and Iceland
• Crude canola oil free into Switzerland
• Pet food for retail Free within quantitative
  limits in Switzerland and Norway.
• Frozen blueberries Duty-free in Switzerland
  tariff cut in Norway
• Tariff reductions on a wide range of processed
  foods in all three markets.

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Other Industries - specifics

• The FTA will eliminate all non-agricultural
  tariffs on Canadian exports to EFTA countries,
  including
• Pre-fabricated buildings and coldwater shrimp to
  Iceland (currently facing tariffs of 5 and 10
  respectively)
• Aluminum and cosmetics to Switzerland (currently
  facing tariffs of 4.9 and 3.8 respectively)
• Apparel products to Norway (most currently facing
  a tariff of 10.7)
• Canadian manufacturers will also benefit from
  lower-cost manufacturing inputs.

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Results for Canadians

• new export market opportunities
• new partnerships
• new customers
• important investors
• enhanced visibility for Canadian companies
• new links to European and global supply and
• value chains enhanced visibility for Canadian
  companies