Regional and Bilateral Initiatives
Canada-European Union - Trade and Investment
Enhancement Agreement |
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Canada-European Union Trade and Investment Enhancement Agreement
Framework for the Agreement
Introduction
Following the instructions given by Leaders at the Canada-EU Summit
in Ottawa on 19 December 2002 to “design a new type of forward-looking,
wide-ranging bilateral trade and investment enhancement agreement
(TIEA)”, the European Commission and the Government of Canada
have worked towards the definition of the scope and main objectives
of such an agreement.
The TIEA builds on the long and fruitful co-operation established
under the 1976 Framework Agreement for Commercial and Economic Co-operation,
the 1996 Joint Action Plan and the 1998 EU-Canada Trade Initiative,
as well as the various bilateral sectoral agreements concluded between
the Parties, most recently the Agreement on Trade in Wines and Spirits
Drinks signed in Niagara on 16 September 2003. The TIEA is aimed
at further developing existing co-operation where it has proved
successful while providing a general framework for bilateral trade
and investment relations.
Canada and the EU1 also seek to address
new challenges and opportunities for trade and investment between
two open and developed economies in the XXI century, given the significant
potential impact of regulatory barriers and the increasingly prominent
role of investment in the bilateral economic relationship. The EU
and Canada agree to work to prevent and eliminate unnecessary barriers
to trade and investment while ensuring better quality and efficiency
of regulations to achieve legitimate policy objectives. Therefore,
regulatory co-operation will be an important element of the TIEA.
The TIEA will also reinforce the Canada-EU partnership in the pursuit
of common objectives, notably further trade liberalisation based
on a strong multilateral rules-based system, and reflect the shared
commitment to promote sustainable development, cultural diversity,
and science and technology linkages.
In addition to contributing to the enhancement of the bilateral
trade and economic relationship, the TIEA should support and contribute
to multilateral trade negotiations, to which the EU and Canada remain
highly committed. Therefore, for those issues covered by the World
Trade Organization (WTO) Doha Ministerial Declaration, bilateral
co-operation under the TIEA will take place without prejudice to
on-going WTO negotiations.
Canada and the EU agree to intensify discussions based on the design
of the TIEA with the aim of further clarifying the scope of the
Agreement and explore the potential for co-operation in any other
areas. The agreement should provide an opportunity for review in
light of any future multilateral/regional/bilateral trade agreements
negotiated by the Parties. Negotiations will begin in 2004.
Scope and Objectives of the TIEA
1. Regulatory Co-operation
The EU and Canada, as reflected in the EU “Better Regulation
Package” and the Canadian “Smart Regulation Initiative”,
respectively, are committed to ensuring high levels of protection
for their citizens and for the environment, while ensuring transparency,
performance and cost-effectiveness of regulations. In this context,
the EU and Canada recognise the value of regulatory co-operation,
developed within the frame of their domestic procedural and substantive
obligations, in order to promote information exchange and expand
mutual knowledge of regulatory practices, including enhanced use
of best practices, improve the effectiveness of regulatory initiatives
and facilitate trade and investment.
The EU and Canada agree to work towards removing obstacles to trade
and investment through adequate mechanisms, including, where appropriate,
the reduction of unnecessary regulatory differences, so as to facilitate
trade while ensuring quality and effectiveness of regulations.
Consequently, regulatory co-operation should have a central role
in the future agreement while respecting both Parties' rights and
obligations under the WTO Agreements or any other international
agreements to which each may be a Party, including the right to
determine the appropriate level of protection of public interests
involved (inter alia, the prevention of deceptive practices, protection
of human health or safety, animal or plant life or health, or the
environment). Regulatory co-operation will also take into consideration
any other international initiatives on regulatory practices to which
both Parties might subscribe, such as those developed in the Organisation
for Economic Co-operation and Development (OECD).
At the December 2002 Summit in Ottawa, the EU and Canada agreed
“to intensify our regulatory dialogue and work towards a new
framework in this field”. Following the adoption by Leaders
at the May 2003 Summit in Athens of the Joint Action Plan on Regulatory
Dialogue and Co-operation, the European Commission and the Government
of Canada are developing such a framework. The EU and Canada look
forward to its completion at the earliest opportunity. This voluntary
framework will form the basis for the development of voluntary co-operation
between EU and Canadian regulators competent in the sectors concerned.
This framework will support, not duplicate, existing mechanisms
(e.g. Joint Committees established under bilateral EU-Canada Agreements;
or in multilateral regulatory bodies).
The TIEA will consequently refer to the voluntary Framework as
the instrument of regulatory cooperation for those areas within
its scope. Other regulatory issues will be addressed according to
the relevant sections of this document. With respect to the regulatory
aspects of services, consideration will be given, if needed, to
possible common elements with future developments arising from this
section.
The TIEA may also establish a specific committee for purposes of
follow up of progress made in the overall application of the voluntary
Framework, address any issues arising, and make recommendations
for future action, without prejudice to the operation of sectoral
committees established under bilateral agreements (e.g. Joint Management
Committee established under the Veterinary Agreement, and Joint
Committee created under the Agreement on Trade in Wines and Spirits
Drinks). In addition, the TIEA may establish more formalised co-operation
mechanisms in those sectors identified by the respective competent
regulators.
2. Services – Domestic Regulation
Canada and the EU agree to discuss issues related to domestic regulation,
including transparency, to help facilitate services trade and enhance
investment.
3. Mutual Recognition of Professional Qualifications
The EU and Canada agree to discuss issues related to mutual recognition
of professional qualifications to help facilitate services trade
and enhance investment.
4. Temporary Entry
Canada and the EU agree to discuss ways to improve access to information
by business on their respective temporary entry regimes.
5. Financial Services
The EU and Canada agree to explore ways to facilitate bilateral
trade in financial services, including the feasibility of facilitating
market access by investment dealers to foreign stock exchanges,
without prejudice to the fora or mechanism for advancing enhanced
access.
6. E-Commerce
Canada and the EU agree to continue and reinforce co-operation
on the basis of the 1999 Joint Statement on Electronic Commerce
in the Global Information Society and the 2000 E-Commerce Work Plan,
including new areas where Canada and the EU share common objectives.
In particular, developments in sectors already identified in the
current co-operation framework such as privacy, security and consumer
protection should be taken into account, namely the fight against
unsolicited communications (spam). This co-operation should take
place, inter alia, bilaterally, in multilateral fora, or
supporting and collaborating with the private sector and civil society.
7. Government Procurement
As reflected in the 1996 EU-Canada Joint Action Plan, the EU and
Canada agree on the value of liberalising government procurement
in terms of increased trade and investment. The potential benefits
of liberalisation are increased in the perspective of the enlargement
of the EU to 25 Members.
In this context, the EU and Canada agree to undertake negotiations
with a view to achieving the greatest possible extension of their
commitments under the WTO Agreement on Government Procurement (GPA)
and eliminating any remaining discriminatory measures and practices.
The EU and Canada also agree to consider transparency rules for
procurement not included in market access commitments and the need
for simplified obligations for some entities or types of procurement.
The EU and Canada also agree to consider working together on the
promotion of GPA membership, in particular amongst developing countries,
and accelerating negotiations of those already committed to join
the GPA.
8. Trade Facilitation
The TIEA should set out a joint commitment and establish a framework
for Canada and the EU to progress both bilaterally and multilaterally
on trade facilitation.
The TIEA shall reflect a strong Canada-EU commitment to co-operate
towards convergence of views and joint action in relevant multilateral
organisations dealing with trade facilitation, notably in the WTO,
the World Customs Organization (WCO), the United Nations (UN) and
the United Nations Conference on Trade and Development (UNCTAD)
and use appropriate elements from their bilateral relations as a
point of reference in such multilateral discussions.
Co-operation pursuant to the TIEA should in particular focus on
areas that can bring identifiable trade benefits to both Parties.
The following aspects of trade facilitation should be covered:
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The development and sharing of best practices in modern customs
techniques: risk management; simplified procedures; the status
of authorised trader; pre-arrival processing; post entry audit;
and “single window” co-ordination of official controls;
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Promotion of common application of international rules, standards
and guidelines in the field of customs and international trade,
including simplification and harmonization of import and export
data and, where possible, use of documentation and procedures
that are in line with relevant international standards of the
WCO, the UN and other organizations;
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Co-operation in the field of electronic data exchange with
the aim of facilitating trade (e.g. in line with the results
of the G7 initiative on trade facilitation), once Canada and
the EU have completed their respective electronic data interchange
systems;
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Ensuring that any measure on security takes account of trade
facilitation, by aiming at greater transparency, proportionality,
non-discrimination, and the reduction of barriers to legitimate
trade;
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Consulting the trading community on its needs with regard to
the development and implementation of trade facilitation measures,
noting that particular attention should be given to the interests
of small and medium enterprises;
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Exchange of information and best practices regarding the Parties’
technical assistance policies and programmes in the field of
trade facilitation; and
- Establishing a programme to develop future steps to facilitate
trade.
Canada and the EU will make use of relevant co-operation mechanisms,
notably those established under the 1997 Customs Co-operation Agreement
and international organizations.
9. Investment
The EU and Canada agree to work to ensure that investment remains
a dynamic feature of the bilateral relationship.
To this aim, the TIEA should include provisions aimed at facilitating
two-way investment. This could be achieved through a work programme
that may include elements to, inter alia:
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Establish a more systematic dialogue covering all investment-related
issues;
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Carry out a more detailed assessment in consultation with stakeholders,
including business, of factors influencing international investment
in their respective jurisdictions, with a view to determining
appropriate disciplines and instruments for improving the bilateral
investment environment. This work would involve a consideration
of existing investment obligations under the network of multilateral,
plurilateral and bilateral investment rules currently in place
between Europe and Canada;
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Continue co-operating in promoting the development of multilateral
disciplines for investment;
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Explore the development of mechanisms that enhance transparency
such as co-operation between appropriate Business Information
Centres, electronic databases and web-portals with the aim to
facilitate investment. This work would aim at providing both
EU and Canadian companies interested in investing in the other
Party’s territory with specific and up-to-date information
on the prevailing regulatory and business conditions; and
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Explore ways to promote investment, including through increased
collaboration between Investment Promotion Agencies in EU Member
States and Canada.
10. Competition
Canada and the EU recognize the importance of embracing the principles
of competition so as to ensure the efficient functioning of their
respective markets and that the benefits of the trade and investment
liberalisation process are not diminished by anti-competitive conduct.
The TIEA should confirm the Parties’ commitment for continued
co-operation and co-ordination among competition authorities on
the basis of the 1999 Competition Agreement.
Canada and the EU agree to co-operate on policy issues of common
interest in relevant international fora.
11. Sustainable Development
Both the EU and Canada are active players on sustainable development
issues (environmental, social and economic aspects) both domestically
and internationally and recognise the important contribution that
trade and investment policy can play in the development of those
objectives.
Therefore, sustainable development should have a prominent place
in the TIEA to ensure that enhanced trade and investment benefits
sustainable development. The TIEA should contain a formal commitment
to a high level of ambition in this field.
In addition, the proposed Agreement should establish a comprehensive
EU-Canada dialogue on sustainable trade. This dialogue would offer
a valuable opportunity to learn from each other’s experiences
on ways to ensure that trade and investment policies contribute
to the objective of sustainable development.
The proposed EU-Canada dialogue should consist of exchanges of views
and information on existing or future initiatives to further promote
international sustainable trade, the identification of opportunities
for bilateral co-operation on sustainable trade and investment initiatives;
and a dialogue aimed at supporting multilateral initiatives and
developing new ones (WTO, follow up to World Summit on Sustainable
Development (WSSD), the OECD, the International Labour Organisation
(ILO), etc.).
The EU and Canada could address, among other issues, the following:
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Environment: transfers of environmental friendly
technologies, voluntary eco-labelling and certification, trade
and environment technical assistance and capacity building.
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Corporate Social Responsibility (CSR) (as
the contribution of the private sector to sustainable development):
CSR and competitiveness; promoting the OECD Guidelines for Multinational
Enterprises; exchange of best practices in promoting sustainability
reporting and disclosure; exploring the impact and potential
of socially responsible investing; and the role and contribution
of Public authorities in support of CSR.
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Social Dimension of Sustainable Development:
exchange of experiences and best practices of both the EU and
Canada in their relations and agreements with third countries,
for example on labour issues; co-operation between international
institutions (ILO, WTO, etc.), including co-operation arising
from the findings and recommendations of the ILO World Commission
on the Social Dimensions of Globalisation.
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Sustainability and/or Environmental Impact Assessments
of Trade Negotiations: process and methodology.
12. Intellectual Property Rights
Canada and the EU recognise that the protection of intellectual
and industrial property rights is an important issue in terms of
trade and investment and, therefore, agree to establish a bilateral
dialogue in this area.
13. Science and Technology Co-operation
The EU and Canada recognise the important role of research and
innovation in their economies and their shared goal of increased
competitiveness.
An important role of scientific co-operation is to reinforce bilateral
trade and investment relations through joint projects and investments,
and to increase knowledge and information sharing in order to best
contribute to the development of effective regulatory initiatives.
The EU and Canada agree, in the context of their 1996 Agreement
for Scientific and Technical Co-operation, to identify, build on
and enhance modalities for increasing science and technology collaboration,
while working to make that collaboration relevant to trade, investment,
regulation and broader policy. We likewise agree to identify and
reduce barriers to co-operation.
14. Small- and Medium-Sized Enterprises
Canada and the EU agree to explore ways to facilitate bilateral
trade, investment, and technology transfer between Canadian and
EU small- and medium-sized enterprises (SMEs) with the aim of including
any appropriate provisions in this respect in the TIEA.
15. Civil Society Consultations
Both the EU and Canada have developed mechanisms for involving
different non-state actors in governmental policy-making and have
argued in favour of a greater role for civil society members in
the WTO.
Therefore, the TIEA should ensure that civil society has a role
to play in the bilateral trade and investment relationship. Building
on each other’s experience of consultation with civil society,
the TIEA should establish a bilateral civil society dialogue, following
the implementation of the Agreement. This may involve a variety
of consultative mechanisms to encourage direct participation by
representatives of non-governmental organisations, business associations,
and other specific or sectoral stakeholders in discussions on a
range of horizontal trade and related issues.
16. Dispute Settlement and Institutional Arrangements
Canada and the EU agree to discuss the appropriate institutional
and dispute settlement provisions once the contours of a future
agreement become more clearly defined.
1. EU refers to the European
Union or the European Union and its Member States as appropriate.
The competence of the EU and/or Member States will be clarified
during the negotiations subject by subject.
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