Argo Customs Brokers is dedicated to maintaining clear communication with their customers and those who wish to keep themselves informed about important importing and exporting regulations. As such, we present pertinent points from a news release issued by the Canada Border Services Agency.
The news release titled CBSA signs Mutual Recognition Agreement with the European Union to enhance supply chain security and facilitate trade was published on October 28, 2022.
The Canada Border Services Agency (CBSA) announced the signing of a Mutual Recognition Agreement with the European Union’s (EU) Taxation and Customs Union (TAXUD) to honour each other’s Trusted Trader programs. The signing took place during a Canada-EU Joint Customs Cooperation Committee meeting in Brussels, Belgium. This contributes to increasing the security of the international supply chain, facilitating trade at the border, and strengthening the economic competitiveness of Canadians doing business with the EU.
Members of Canada’s Trusted Trader program, Partners in Protection (PIP), will have their goods treated as low risk and cleared by EU Customs faster, ultimately saving time and money at the border. The CBSA will do the same for members of the EU’s Trusted Trader program, which is referred to as their Authorized Economic Operator program. This will also allow the CBSA to focus its resources on areas of higher or unknown risk and protect Canadians by preventing contraband from entering the country.
The CBSA establishes mutual recognition with customs organizations around the world so countries can recognize each other’s program members as low risk and honour similar benefits. It signifies that countries apply similar security standards and validation processes when approving program applicants. The key goal of mutual recognition is to strengthen trust and security in the supply chain to prevent criminal activity, such as cargo theft, pilferage, and smuggling contraband. Mutual recognition also contributes to trade by streamlining processing at the border for certified and trusted traders.
| “The Canada Border Services Agency is pleased to have signed a Mutual Recognition Agreement with the European Union, Canada’s second-largest trading partner. This agreement will enhance international supply chain security, facilitate trade between Canada and Europe, and strengthen the economic competitiveness of Canadian businesses.” —Erin O’Gorman, President, Canada Border Services Agency |
Key Takeaways
- The EU is one of the largest economies in the world and Canada’s second-largest trading partner after the United States.
- The EU is a large, dynamic market of 450 million consumers that offers tremendous opportunities for Canadian businesses in a wide range of sectors.
- The Canada-EU Comprehensive and Economic Trade Agreement has significantly expanded commercial opportunities between the parties.
- In 2021, the value of trade in goods between the EU and Canada was approximately $88.2 billion.
- In addition to this agreement with the EU, the CBSA has established mutual recognition with the customs administrations of Australia, Hong Kong, Israel, Japan, Mexico, New Zealand, Peru, Singapore, South Korea and the United States.
Associated Links
- Partners in Protection: Mutual recognition
- Canada-European Union Comprehensive Economic and Trade Agreement
- Doing business in the European Union
Argo Customs Brokers is Available to Assist
If you or your company imports goods that are affected by this agreement, ARGO Customs Brokers would be happy to talk with you about how you and your company can get the most out of it. The team at Argo Customs Brokers is always available to answer questions about importing and exporting and can help you understand the effect that this agreement can have on your plans. All inquiries are welcome.