ST. JOHN’S—While the oil and gas industry is dealing with crude price challenges, good things are on the horizon for the industry in Atlantic Canada, according to Ernst & Young’s latest edition of East Coast Offshore.
According to the report, optimistic estimates predict the ratification of the Comprehensive Economic and Trade Agreement between Canada and the European Union will occur in 2016, which could mean that legislation respecting CETA commitments could be in play by late 2016 or early 2017.
“With current trade patterns bolstered by liberalization, a new, more efficient, borderless and integrated North Atlantic offshore industry is on its way to becoming a reality,” the report says.
The report also highlights how Canadian businesses have benefited from the country’s strong trade relationship with the U.S., but that the Canadian government is now hoping to create trade opportunities elsewhere.
Unlike Canada’s net export position with the U.S., Atlantic Canada in particular relies on imports from Europe.
“Atlantic Canada’s resource economy depends on European imports for production inputs, but has not historically capitalized on exporting product to the EU market,” the report says.
CETA, EY says, could change this and help boost Eastern Canada’s exports across the Atlantic.