When people talk about North America, Italian companies almost always focus on the United States. Yet right next door there is a market that has become much more accessible in recent years: Canada. A country with high purchasing power, a strong community of Italian origin, a widespread appreciation of European food, wine and design and, above all, a free trade agreement with the European Union. In this article we explain why we consider it one of the most interesting markets for Made in Italy and how we work to enter it.
What CETA is
CETA (Comprehensive Economic and Trade Agreement) is the economic and trade agreement between the European Union and Canada, provisionally applied since 2017. With its application, the vast majority of tariffs on goods traded between the two areas were removed. For many Italian goods, from machinery to clothing, from pasta to olive oil, exporting to Canada today means paying no customs duties, provided the rules of origin are met.
Beyond tariffs, the agreement recognises and protects in Canada a list of European geographical indications, including many Italian designations. It also makes it easier for European companies to take part in Canadian public procurement, including that of provinces and cities.
Why Canada is an interesting market
- Duty-free access for most products, at a time when the US market has become more expensive.
- Like-minded consumers: a consumer culture close to Europe's and a large Italian-Canadian community, especially in Ontario and Quebec.
- Stability: clear rules, a reliable legal system, timely payments.
- A gateway: for many companies it is an excellent test bed before tackling larger and more competitive markets.
The rules to know
Exporting to Canada is simpler than before, but not automatic. There are some aspects we always check with companies.
Preferential origin
Zero duty applies only to products that meet the agreement's rules of origin. You must show that the product "originates" in the European Union and state this correctly in commercial documents. For shipments above a certain value threshold the exporter must be registered in the European registered exporter system (REX). A mistake here can mean paying a duty that could have been avoided.
Bilingual labels
In Canada English and French are official languages. For many products, food in particular, labels must show the mandatory information in both languages, with precise rules on content and format.
The provincial system
Canada is a federal state and some rules change from province to province. The best-known example concerns wine and spirits, whose sale is largely controlled by provincial bodies, the so-called liquor boards. To get into their catalogues you need to follow specific selection procedures and calendars, often through a local agent.
Technical and health requirements
Food, cosmetics, electrical products and machinery must comply with Canadian standards. We check the specific requirements for your product before shipments start.
How we enter the Canadian market with you
1. Market analysis
We assess demand for your products, competition and prices, starting with the most promising provinces for your sector.
2. Compliance and origin check
We check customs codes, rules of origin, labelling requirements and certifications, to avoid blockages and unexpected costs.
3. Partner search
We identify importers, distributors and agents suited to your product and prepare meetings, including at trade fairs and trade missions.
4. Pricing and channel strategy
We define a sustainable price list and the most suitable channels: large retail, specialist shops, food service, e-commerce.
5. Financing the project
We check access to instruments such as SIMEST subsidised loans for trade fairs, market entry and e-commerce, as well as regional calls for internationalisation.
Let's talk
If you are looking for a stable, wealthy foreign market that today is duty-free for most products, Canada deserves serious consideration. At Di Stasi Group we help you understand whether your product is ready and build a concrete entry path. Get in touch to find out more.
Further reading
- Import/export consulting: contracts, Incoterms and customs
- Exporting to the United States after the Turnberry agreement
- Exporting to Asia: Japan, South Korea and India
Frequently asked questions
What is CETA and how does it help Italian companies export to Canada?
CETA is the Comprehensive Economic and Trade Agreement between the European Union and Canada, provisionally applied since 2017. It removes the vast majority of tariffs on goods traded between the two areas, meaning many Italian products like machinery, clothing, pasta and olive oil can be exported to Canada duty-free, provided they meet the rules of origin.
What are the rules of origin for duty-free exports to Canada?
Zero duty applies only to products that originate in the European Union and are correctly declared in commercial documents. For shipments above a certain value threshold, the exporter must be registered in the European registered exporter system (REX). A mistake in this process can result in paying avoidable duties.
Do products need special labelling to be sold in Canada?
Yes, in Canada both English and French are official languages. Many products, especially food items, must have labels showing mandatory information in both languages with precise rules on content and format.
Why is Canada considered an interesting market for Made in Italy?
Canada offers duty-free access for most products, has high purchasing power, a strong Italian-Canadian community, widespread appreciation for European food and design, and a reliable legal system. It also serves as an excellent test market before entering larger and more competitive markets.
How do provincial rules affect selling wine and spirits in Canada?
Canada is a federal state where some rules change by province. Wine and spirits sales are largely controlled by provincial liquor boards, and to get into their catalogues you need to follow specific selection procedures and calendars, often through a local agent.
What steps should a company take to enter the Canadian market?
The process includes: market analysis to assess demand and competition, compliance and origin checks to avoid blockages, identifying suitable importers and distributors, defining pricing and channel strategy, and exploring financing options such as SIMEST subsidised loans for trade activities.