EU-Canada Trade Shift: What It Means
- Madni Laghari
- Jun 27
- 5 min read
The EU and Canada strengthen trade ties—here’s why this is big news for customs, compliance, and cross-border trade professionals.
This week, customs and trade professionals are watching a powerful message from Brussels: the EU and Canada are entering a new era of transatlantic cooperation. From joint defense procurement to deeper industrial collaboration and AI cooperation, this signals more than a political handshake—it’s a future-focused framework that enhances customs integration, digital trade, and supply chain resilience.
If you’re an exporter, compliance officer, or customs consultant, you’ll want to understand how this impacts your business. And while that’s the headline, we also cover major updates from the U.S. and Israel—plus our tips to build stronger internal customs capabilities and keep your team on track.
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Key Questions Covered in This Blog
What’s new in the EU-Canada strategic partnership and how does it affect exporters?
How do the new U.S. HTSUS tariff codes affect steel-related imports?
What should importers know about goods from Israeli settlements under EU rules?
How can companies secure customs knowledge effectively using video intranets?
Why should customs and compliance teams run a midyear performance check?
What are the benefits of the Zollwärts summer roundtables for customs professionals?
Abbreviations Used in This Blog
HTSUS – Harmonized Tariff Schedule of the United StatesFTZ – Foreign Trade ZoneEU – European UnionCETA – Comprehensive Economic and Trade AgreementSAFE – Support Act for European Defense Industry
“When global trade relationships evolve, smart customs professionals adapt early. The EU-Canada partnership offers opportunities we can’t afford to miss.”Arne Mielken, Managing Director, Customs Manager
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What’s new in the EU-Canada strategic partnership and how does it affect exporters?
The EU and Canada are tightening their transatlantic trade ties through a new security and defense partnership that includes access to joint EU procurement via the SAFE instrument. This goes beyond defense. Canada and the EU have agreed to deeper collaboration on AI development, digital trade, and industrial policy.
For exporters, the reinvigoration of CETA is critical: since implementation, bilateral trade has increased by 65%, and 98% of goods are now duty-free. Customs consultants and compliance officers should note that new dialogues on digital commerce, AI cooperation, and supply chain resilience will likely shape upcoming regulatory standards. This is the moment to align systems and practices with both EU and Canadian requirements.
The strategy also signals geopolitical solidarity, with joint calls to support Ukraine and Moldova and de-escalation in the Middle East. But economically, the focus is clear: the EU and Canada want to build the most resilient and tech-driven trade partnership in the G7.
How do the new U.S. HTSUS tariff codes affect steel-related imports?
Effective 23 June 2025, new HTSUS codes (9903.81.87 to 9903.81.99) target steel derivatives like nails and bumpers with an increased 50% additional import duty. Even goods with minor steel content are subject if steel value is declared.
This marks a significant shift for brokers and compliance officers: customs filings must now include detailed steel content declarations. FTZ use doesn’t shield goods from duties upon release into free circulation. These duties stack atop regular customs duties and trade remedy measures.
What should importers know about goods from Israeli settlements under EU rules?
The European Commission has published a list of territories excluded from preferential treatment under the EU-Israel Agreement. Products originating in Israeli settlements in territories occupied since 1967 (e.g. West Bank, East Jerusalem, Golan Heights) are not eligible for tariff preference.
Declarations like EUR.1, EUR-MED, or origin statements must now clearly show the location and 7-digit ZIP code. Customs declaration code Y864 is mandatory, confirming the product does not originate from a non-preference area. Misstatements lead to denial of preference and financial penalties.
How can companies secure customs knowledge effectively using video intranets?
In customs, internal know-how is gold. But it often disappears with staff turnover or stays buried in inboxes. That’s why some companies, like the Grenzlotsen team, are building internal video intranets: short explainer clips embedded in company portals to document, explain, and standardize customs workflows.
It’s practical. It’s scalable. And it answers questions before they become urgent compliance issues. With minimal investment, customs consultants and import/export officers can use these tools to reduce errors, reinforce compliance, and train new hires.
Why should customs and compliance teams run a midyear performance check?
As July approaches, it’s time to ask: What have we achieved this year? What’s still pending? And have we celebrated our wins?
A midyear check-in allows customs teams to realign goals, update KPIs, and tackle obstacles early. Whether it’s missed audits, tariff misclassifications, or process delays, this is your window to course-correct. Don’t wait until year-end to notice what’s off-track.
What are the benefits of the Zollwärts summer roundtables for customs professionals?
The Zollwärts Stammtisch summer series offers a sneak peek into top customs themes through interactive virtual roundtables with industry speakers. Topics include U.S. trade policy shifts, tricky tariff classification issues, and customs valuation pitfalls.
The real benefit? You don’t just sit and listen—you discuss, share, and walk away with practical tools for your customs compliance challenges. It’s also a great networking space to hear from other customs consultants and professionals across industries.
Arne’s Takeaway
This week’s headline is clear: EU-Canada cooperation is moving into a new strategic phase. For exporters, consultants, and compliance professionals, this isn’t just political—it’s operational. Align with evolving digital trade and regulatory goals now.
And don’t lose sight of other critical updates—like U.S. tariff shifts and origin rules in the EU. Knowledge is your best defense in today’s trade environment.
Expert Recommendations
Map your business activities against new EU-Canada cooperation points.
Audit U.S.-bound steel product codes against new HTSUS listings.
Use the EU-Israel non-preference list proactively in documentation.
Launch internal training videos to lock in critical customs skills.
Schedule a departmental midyear review and align goals.
Join the Zollwärts roundtable to share customs challenges and solutions.
Sources & Further Information
Disclaimer
This blog is for educational purposes only and should not be considered legal advice. Please consult qualified professionals for personalized trade and customs guidance.
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