24 May 2005

Canada-European Union - Trade and Investment Enhancement Agreement

The following is extracted from a press release issued on 20 March 2005.

At the Canada-European Union Summit in Ottawa on March 18, 2004, Prime Minister Martin and European Union (EU) leaders agreed to a framework for a new Canada-EU Trade and Investment Enhancement Agreement (TIEA) and reiterated their commitment to reaching a successful conclusion to the World Trade Organization’s (WTO) Doha Development Agenda. In parallel with the WTO negotiations, the bilateral TIEA provides Canada and the EU with the opportunity to address barriers to trade and investment on a “two-track” approach.

The first round of negotiations on the TIEA took place in Brussels May 17-18, 2005 and another set of talks should occur later this year in Ottawa. However, the negotiations would not conclude before the results of the WTO negotiations on the Doha Development Agenda are known, as the successful conclusion of the latter is of central importance to Canada in reducing EU barriers.

The TIEA ... anticipates future challenges and creates opportunities to broaden and deepen the trade, investment and overall relationship with the EU. The TIEA is an important element in the development of Canada’s broader relations with the EU, particularly as the EU expanded to 25 members in May 2004.

This new agreement is intended to move beyond traditional market access issues and would include areas such as trade and investment facilitation, competition, mutual recognition of professional qualifications, financial services, e-commerce, temporary entry, small- and medium-sized enterprises, sustainable development, civil society consultation, and science and technology. The TIEA will also build on a Canada-EU regulatory cooperation framework.... In addition to lowering barriers, the TIEA would heighten Canadian and European interest in each other’s markets and could bring considerable economic benefits to Canada.

The TIEA Framework provides a list of the mutually agreed chapter headings of issue-areas for inclusion under the TIEA with a brief description outlining the scope to be negotiated.