Driving shared prosperity: Boosting EU–Canada trade through CETA

Key development

The fifth Joint Committee adopted a CETA 'Interpretation on Investment' clarifying elements such as fair and equitable treatment, indirect expropriation and investment and climate change, and signed a Decision to adopt expedited arbitration procedures to improve SME access to investment dispute resolution. The co‑chairs also agreed to amend the GMP Protocol to include active pharmaceutical ingredients via written procedure and formally launched negotiations on an EU‑Canada Digital Trade Agreement.

Context

Nearly nine years into CETA’s provisional application, which started in 2017, two‑way trade in goods has risen by over 75% and services trade by 97%, with an EU ex‑post evaluation noting positive effects on SMEs and supply‑chain resilience. Co‑chairs welcomed progress under the 'New EU‑Canada Strategic Partnership of the Future'.

Key areas

Agreements and workstreams covered investment, pharmaceuticals and APIs, mutual recognition of professional qualifications including the Architects MRAA, agriculture and SPS, regulatory alignment, motor vehicles and conformity assessment, and digital trade. A business roundtable on the DTA gathered stakeholder views to inform negotiations.

Next steps

Parties will proceed with the GMP Protocol amendment via written procedure following internal approvals, convene a Senior Officials’ meeting on agri‑food SPS issues to report to the next Joint Committee, advance DTA negotiations and continue work towards full ratification of CETA by all 27 EU Member States.