Canada-Europe FTA Will Benefit Montreal Throughput
The signing of a free trade agreement (FTA) between Canada and the European Union will have a positive impact on transatlantic trade between the two, with the port of Montreal on the country's eastern coast well positioned to benefit from the deal. The UK and Europe together make up the largest share of cargo traffic at Montreal; we believe that tariff-free access between importers and exporters from both offers upside risk to Montreal's throughput over the medium to longer term.
Canada's new free trade deal with the European Union, which was agreed in October 2013, will be a positive step for both parties, with the North American nation's second-largest container port, Montreal, most likely to benefit from a potential rise in transatlantic trade. Montreal Port Authority CEO Sylvie Vachon has said that the agreement will be a 'door opener' and encourage trade between North America's industrial heartland and Northern Europe.
The free trade agreement will allow Canadian exporters tariff-free access to the EU's market of 500mn consumers. Importers will also benefit from reduced prices for European products. The agreement is expected to take two years to ratify and will be phased-in over seven years.
|Back Into Positive Territory|
|Port Of Montreal Container Throughput, 2008-2017 (TEUs & % chg y-o-y)|