EU and Canada Strengthen Textile and Apparel Trade Ties Under CETA Framework

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AI Summary

The textile and apparel industries on both sides of the Atlantic are signalling a strengthened commitment to transatlantic trade, with leading industry associations jointly calling for deeper cooperation under the Comprehensive Economic and Trade Agreement (CETA). The joint statement, issued on the occasion of the EU–Canada Summit in Montréal, was put forward by EURATEX, the Canadian Textile Industry Association (CTIA) and the Canadian Apparel Federation (CAF), who collectively described the textile and apparel sector as a major contributor to advanced manufacturing in both markets.

Trade Figures Reflect a Growing Commercial Relationship

EU exports of textiles and clothing to Canada approached €997 million in 2025, while EU imports from Canada totalled €147 million during the same period. In the first six months of 2026 alone, EU exports reached €702 million, representing a 5.7% increase compared with the same period in 2025.

The associations described these figures as evidence of an established commercial relationship with considerable room for further growth across the full textile and apparel value chain. For Canadian manufacturers specifically, the European market is seen as an opportunity to expand exports, build new commercial relationships and diversify beyond traditional markets.

Canada’s textile and apparel industry brings considerable manufacturing expertise in technical textiles, advanced materials and specialised products that serve sectors including defence, healthcare, transportation and construction.

Calls for Full CETA Implementation

A central theme in the joint statement was the call for full implementation of CETA, which has been provisionally applied since September 2017. The associations urged EU Member States that have not yet ratified the agreement to complete their national procedures, allowing CETA to enter into full force and deliver long-term stability for businesses across the textile and apparel sector.

According to the European Commission, the overall preference utilisation rate for EU exports to Canada rose from 38.7% in 2018 to 63.2% in 2024. While the associations acknowledged this as progress, they also noted that eligible exporters were still not consistently claiming the tariff preferences available to them under EU-Canada textile trade arrangements.

The groups called for practical guidance to be communicated more clearly and in simpler terms, so that small and medium-sized enterprises (SMEs) in particular could more readily benefit from CETA. They stressed that Canadian manufacturers must equally be able to access the opportunities the agreement offers in the European market, with greater awareness of tariff preferences, simplified procedures and stronger cross-border business connections all identified as key to unlocking the agreement’s full potential.

Deepening Industry Ties Through Dialogue and Partnership

EURATEX, CTIA and CAF noted they were already taking concrete steps to strengthen industry ties ahead of the summit. In April 2026, EURATEX signed complementary joint policy statements with CAF at Première Vision Montréal and with CTIA at Techtextil Frankfurt. Through these statements, the associations committed to closer industry dialogue, stronger business relationships and cooperation on sustainability and innovation.

The EU-Canada Textile and Apparel Dialogue, initiated through these statements, is intended to serve as a practical platform for fostering business-to-business partnerships and translating shared priorities into measurable outcomes for manufacturers on both sides of the Atlantic.

Focus on Technical Textiles, Sustainability and Regulatory Coherence

Looking ahead, EURATEX, CTIA and CAF expressed support for joint research and industrial partnerships in the areas of technical textiles, advanced materials, circularity and recycling technologies. The associations described these areas as offering meaningful opportunities to strengthen industrial competitiveness and develop innovative solutions across the broader supply chain.

The groups also called for more coherent regulatory approaches, specifically around traceability, eco-design and digital product information. They advocated for regulatory cooperation that could include aligning technical requirements and, where appropriate, mutually recognising standards between Canada and the European Union. Such steps, they argued, would help reduce unnecessary regulatory burdens, particularly for SMEs, which make up the majority of the sector.

The associations were clear that regulatory frameworks should be designed to support innovation, investment and industrial competitiveness, with the aim of maintaining a strong manufacturing base in both regions.

A Unified Call at a Time of Global Trade Uncertainty

Against the backdrop of wider global trade uncertainty, EURATEX, CTIA and CAF underlined the importance of open, rules-based trade and resilient, diversified supply chains. The associations invited EU and Canadian leaders to use the Montréal summit to advance CETA implementation, facilitate business-to-business connections, support joint industrial projects and promote innovation across the EU-Canada textile trade relationship.

The three organisations stated they stood ready to work with governments and industry partners to convert shared ambition into tangible opportunities for manufacturers across the transatlantic textile and apparel industry.

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