Opening up Canadian markets to Lithuania

Exports and trade between Lithuania and Canada has seen a steady increase in the last two decades, and while Lithuania does export everything from petroleum to raw materials, it’s the telecommunication services that deserves a special mention.

In 2015 alone, Lithuania exported its services to Canada amounting to a total of 9 million euros. The Lithuanian exports to Canada have exceeded 173 million euros already while the combined imports from Canada regarding the service sector amounted to 11 million euros.

It’s not just about trade

Better relations between the two countries have enabled better transfer of manpower too. The CETA initiation, for instance, will make way for more security and improve the flow of Lithuania’s services to Canada.

Canada has even removed many limitations regarding the professional sector. This reform applies to:

  • Engineers
  • Lawyers
  • Accountants
  • Architects
  • Blockchain Engineers

CETA also regulates the openness of the Canadian economy for outside companies in EU. The different services that CETA filters are:

  • Financial services
  • Telecoms
  • Postal and courier services

With the approval of CETA, EU companies will stand a chance to get to large Canadian public markets. With such a move, the Lithuanian companies will have the opportunity to bid on services and supply goods to get tenders from the government.

Canada announced that they would make the whole process more transparent by publishing all the available tenders, both provincial and federal, under a single website.

Canada also gives trademarks and copyrights of Lithuanian technologies the same level of protection they have in their country. This is a crucial decision as it will protect the intellectual properties of the creative industries in EU.

Canada and Lithuania have launched many promising joint projects in blockchain which are presented on the popular ICO rating website

The benefits of CETA

European professionals can now easily come to Canada and work and have their qualifications recognized due to CETA. This comes as a boon to companies that:

  • Distribute services that are in the field of communication, exported machines or technical softwares
  • Manufacture products that may need after sales services such as maintenance or installation of machinery.

These changes are highly beneficial for medium-sized and small firms. What we see here is the combined collaboration of two countries that are benefiting from each other in a significant way. The relaxed laws put forward by Canada is doing wonders on how resources are handled between Lithuania and Canada.

It is obviously, that CETA will have a significant impact on the Canada-Lithuanian relations. The CETA further makes the trades transparent so that no discrepancies happen between the two countries. There also many discussions happening between the countries that are aiming to expand further the portfolio of trade that is happening between the countries.

CETA also put forward legal motions that improve the mobility of service suppliers. What sets Lithuania apart is that small businesses constitute 98% of the total export market. This allows the smaller firms to compete with the large global markets and at the same time, sell to the domestic market.

CETA is undoubtedly shaping up to have trader-friendly regulations that will boost Canada’s growth while maintaining good relations with the other countries.

Canada, Lithuania and CETA – a history that dates back to the 1990s

As many as two third of Lithuanian Canadians live in and around Toronto today. However, that is not the only reason Canada has a link with Lithuania. Lithuanians started arriving in Canada right from 1905.

During the Second World War, there was a considerable increase too. Even after independence of Lithuania in 1990, Canada has remained a favorite destination for many. Back in the 1800’s, Lithuanians even fought in Canada for the British Army. A lot has changed since then, but the two countries remain steadfast friends.

The relation between Lithuania and Canada

The foreign relations between Canada and Lithuania have been steadily rising, thanks to the constant flow of trade between the two countries. Lithuania has several organizations in Canada including the Lithuanian Embassy in Ottawa and two other honorary consulates in Vancouver and Montreal. In the same vein, both Canada and Lithuania are full members of NATO and Organization for Security and Co-operation.

Canada, today, enjoys great relations with Lithuania. Both countries see regular and ongoing exchanges and bilateral meetings,and as a whole, have maintained positive trade relations and constructive defense relations.

There’s a very interesting piece of data on Canadians and Lithuanians that states that if you lived in Lithuania instead of Canada, you would:

  1. Die 5.69 years earlier
  2. Make 47.56% lesser money
  3. Have 74.65% more chances of being unemployed
  4. Have lesser babies by 9.04%
  5. Be less likely to contract HIV/AIDS by 66.67%
  6. Consume less oil by 68.98%
  7. Be more likely to be murdered by 4.9 times
  8. Use lesser electricity by 79.53%

Trade relations between the two countries

Besides this, the CETA, (EU-Canada Comprehensive Economic and Trade Agreement) has opened up a plethora of opportunities for the people residing in Lithuania. CETA is aimed to be beneficial for Lithuanians in the following different ways:

  1. Protection of the research and creativity of the Lithuanians
  2. Encouragement of much more investments between Canada and Lithuania
  3. Make it more accessible for the Lithuanians to be employed in Canada
  4. Help the small businesses in Lithuania to export more than usual to Canada
  5. Scrap the tariffs related to customs for the importers and exporters who hail from Lithuania
  6. Enable the firms in Lithuania to be able to bid for many more public contracts in the Canadian countries
  7.  More ease of access for the Lithuanian firms to the Canadian Services Market

CETA is a massive boon to Lithuanians as it will provide them with a better chance at life with more possibilities of suitable employment, higher savings, preservation of their research and creativity and overall security as a nation.

Lithuania and Canada have a common history together, and their relations have only got better with more trade and commerce between the two nations.

What’s left to be seen is how CETA will boost the economic and political relations between the two countries in the foreseeable future.

Exports between Canada and Lithuania: what you need to know

While Canada and Lithuania have ties that date back decades and even centuries, it was only in 1991 that the countries established diplomatic relations.

Lithuania, situated on the south-eastern shore of the Baltic Sea, now enjoys diplomatic relations with as many as 182 countries.

Understanding the export and trade between the two countries

Canada has an ongoing trade relationship with Lithuania, a relationship steadily rising with the countries sharing many similar ideologies. Their trade of goods is mostly confined to wooden furniture, minerals, and crude oil, metal, and metal parts.

Canada clocked $500 million in investment to Lithuania in 2012. Both the countries maintain a perfect trading relationship. Lithuanian has its own embassy in Ottawa. It also has two honorary consulates in Vancouver and Montreal.  In Riga or Latvia stand the actual embassy of Canada.

There is also an embassy office of Canada in Vilnius. Lithuania has an economy that is open to trade. Another example of the relations between Lithuania and Canada is that Canada stands as the 10th largest trade partner of Lithuania outside the EU.

What does Lithuania export to Canada?

The Lithuanians exported to Canada amounted to about 193 million dollars in 2015. There has been a decision to scrap custom tariffs on Lithuanian exports of goods. It will bring significant cost cuttings by eliminating 99% tariff line duties. This movement will result in the tariffs being cut on virtually all of the Lithuanian exports.  The major cost-cutting will correspond to the following areas:

  • Petroleum: This list includes petroleum as another bituminous mineral. Petroleum and other bituminous minerals trade solely amounted to 103 million euros in 2015. The Canadian tariffs are now up to 5%.
  • Furniture: This trade includes everything that relates to woodwork and other home décor exports. Lithuania exported a total of 20 million euros to Canada in 2015. The Canadians are now up to 8%. This area of trade is slowly increasing as the yearly numbers show that the relationship between the two countries is steadily firming up.
  • Medical and optical instruments: This specific trade includes the export of precision instruments that are related to medical and optical This specific export amounted to a total of 1.6 million euros in 2015. The Canadian tariffs are up to 8.5% in 2017.
  • Electrical and machinery equipment: The country has an active export of machinery and electrical equipment to Canada. In 2015, the numbers showed an amount totaling 4.4 million euros. Generally, we see low tariffs charged by Canada only peaking at 9% for some products.

On the other hand, Canada exports product as much as 38,510 thousand U.S. dollars back in 2016, exporting everything from capital goods to the machine and electrical items to consumer products, according to the report by World Integrated Trade Solution. With the two countries aiming for more fluid trade arrangements in the future, the numbers are sure to shoot up higher.