Trade between Canada and the EU amounts to more than EUR60bn (US$69.8bn) per year

Trade between Canada and the EU amounts to more than EUR60bn (US$69.8bn) per year

The European Union (EU) and Canada have set a provisional implementation date for their Comprehensive Economic and Trade Agreement (CETA), after which products that qualify for free trade will be able to enter and leave Europe duty-free.

The move paves the way for around 98% of the treaty to come into effect. The provisional application of the pact will come into effect on 21 September, according to a joint-statement from Canada's Prime Minister Justin Trudeau and Jean-Claude Juncker, president of the European Commission.

"The Comprehensive Economic and Trade Agreement marks a new chapter in the relationship between the EU and Canada," the statement read. "It is by opening up to each other, by working closely with those who share the same values that we will shape and harness globalisation.

"Meeting at the G20 in Hamburg, reconfirming our joint commitment to the rules-based international trading system, we agreed to set the date of 21 September 2017 to start the provisional application of the agreement, thus allowing for all the necessary implementing measures to be taken before that date."

The agreement will enter definitively into force once it has been ratified by all 28 EU member states and parliaments.

The trade pact was set to be provisionally applied by 1 July, but a dispute between the two countries delayed it. The EU had not been satisfied Canada would open up its markets to 17,700 additional tonnes of EU cheese and provide guarantees for the patents of European pharmaceuticals.

Trade between the two countries amounts to more than EUR60bn (US$69.8bn) per year, and the EU expects CETA to boost this by 20% by removing almost all tariffs.

The general rule of origin for the CETA is fabric-forward. This means apparel goods qualify for duty-free treatment if they are cut and sewn in the EU or Canada, from fabric made in either Canada or Europe.

According to the Canadian Apparel Federation (CAF), apparel made from imported fabrics do not qualify under this rule of origin, but may utilise "origin quotas" established under the agreement that allow Canadian-made apparel to enter Europe duty-free.