On Thursday, 5 March, Commissioner for Trade and Economic Security Maroš Šefčovič and Canadian Minister of International Trade Maninder Sidhu opened negotiations with the aim of reaching a digital trade agreement (DTA) between the EU and Canada. They met in Toronto in the context of the fifth meeting of the Joint Committee of the Comprehensive Economic and Trade Agreement (CETA) between the two blocs.
This digital agreement, like those already ratified by the EU, is expected to enable both parties to facilitate their digital exchanges through businesses and to offer a better level of protection for consumers.
The agreement is expected to lay the foundation for the most robust data protection environment possible and to ensure greater legal certainty for businesses on both sides.
The DTA will also build on the EU–Canada Digital Partnership, which was signed in December 2023. Over 60% of global GDP is linked to digital transactions. The EU is the world’s leading exporter and importer of digital services.
The Comprehensive Economic and Trade Agreement. More broadly, the fifth meeting of the Joint Committee of the EU–Canada Comprehensive Economic and Trade Agreement (CETA) aimed to take stock of the bilateral partnership—almost 9 years after CETA had provisionally entered into force.
The partners took pride in the positive results [that had been achieved]: bilateral trade in goods has risen more than 75% since 2017, and bilateral trade in services, 97%.
In order to go further, the Joint Committee adopted CETA’s “Interpretation on Investment” so as to clarify certain elements of the provisions set out in the agreement, such as “fair and equitable treatment”, “indirect expropriation”, and the relationship between “investment and climate change”.
It also aims to ensure the parties can regulate in order to achieve policy objectives that are considered to be “legitimate”, such as those in the framework of climate, energy, and health policies.
Moreover, the commissioner and the Canadian minister signed the Joint Committee’s decision on adopting expedited arbitration procedures so as to improve access to investment dispute resolution for small and medium-sized enterprises (SMEs). (Original version in French by Isalia Stieffatre and Pauline Denys)