The Canada Border Services Agency (CBSA) and the European Union’s (EU) Taxation and Customs Union (TAXUD) have signed an agreement 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 agreement will contribute to increasing security of the international supply chain, facilitating trade at the border, and strengthening the economic competitiveness of Canadians doing business with the EU.
The EU is one of the largest economies in the world, with 450 million consumers, and Canada’s second-largest trading partner after the United States. In 2021, the value of trade in goods between the EU and Canada was approximately $88.2 billion.
The Canada-EU Comprehensive and Economic Trade Agreement has significantly expanded commercial opportunities between the parties.
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 others’ 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 and pilferage, and smuggling contraband. Mutual recognition also contributes to trade by streamlining processing at the border for certified trusted traders.
Border management is a shared international responsibility. Threats and opportunities arising from global migration and trade are dealt with most effectively by working together. Expanding the international network of accredited low-risk companies allows customs administrations to focus on targeting shipments of higher or unknown risk.
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.
Leave a Reply