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    Bilateral Ambition

    Canada, the EU, and the ComprehensiveEconomic and Trade Agreement

    (CETA)

    These materials were prepared by Celso A. A. Boscariol, Barrister & Solicitor, of Vancouver, BC,Canada for the Canadian Corporate Counsel Association World Summit in Montral, Canada,April 2012.

    Celso A. A. Boscariol

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    TableofContents

    1. History.....................................................................................................................32. JointStudyandScopingReport.............................................................................53. CurrentCanadaEUTrade......................................................................................64. Scope........................................................................................................................85. CurrentObstacles....................................................................................................9

    5.1 ProvincialRegulations.....................................................................................105.2 PublicProcurement.........................................................................................105.3 SupplyManagement........................................................................................115.4 WTOSanitary&PhytosanitaryStandards....................................................125.5 MarketAccess..................................................................................................13

    5.6

    RulesofOrigin

    .................................................................................................

    13

    5.7 IntellectualProperty........................................................................................145.8 GeographicIndications...................................................................................155.9 Services.............................................................................................................155.10 CooperationMechanisms...............................................................................175.11 LabourMobility&MovementofBusinessPersons......................................185.12 Investment.......................................................................................................185.13 RegulatoryCooperationandTechnicalBarrierstoTrade(TBT).............195.14 MonopoliesandStateEnterprises...............................................................20

    6. WhatsDifferentthisTime?..................................................................................20

    7.

    Future

    .......................................................................................................................

    21

    Acknowledgement

    IwishtothankAnthonyG.Seepish,Barrister&Solicitor,WatsonGoepelLLP,forhisinvaluablecontributiontothispaper.

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    1. History

    Economic relationsbetweenEurope andCanada are longstanding.Canada and

    Europeshare

    cultural

    and

    economic

    bonds

    built

    up

    over

    centuries

    ofimmigration,

    trade and exchanges through academic, sports and cultural activities. Most ofCanada's ethnocultural communities hailing from Europe maintain strong tiesthroughfamilyrelationships,friendshipsandbusiness.StartingwiththefurtradeinNewFrance400yearsagoandprogressing toaerospaceproducts, technologytransfers, pharmaceuticals, and scientific exchanges today, Canada and Europehave been active trading partners. So CETA is a natural fit for Canada as anextensionofitslongstandingandmultifacetedrelationshipswithcountriesoftheEuropeanUnion(EU).

    The

    first

    formal

    treaty

    between

    Canada

    and

    the

    EU

    dates

    back

    53

    years

    to

    1959,

    whenanagreementwasconcludedbetween theGovernmentofCanadaand theEuropeanAtomic Energy Community (EURATOM) dedicated to the peacefulusesofatomicenergy.TheeconomicrelationshipbetweenCanadaandtheEUintrade and economic cooperation more generally dates back to 1976when theBilateralFrameworkAgreement forCommercialandEconomicCooperationwasconcluded.ItistheEU'sfirstformaleconomicrelationshipwithanyindustrializedcountry.Since the1976FrameworkAgreement,CanadaandtheEUhaveenteredinto a number of sector specific agreements, most prominent among them,Agreement on Science and Technology (1996), Higher Education and Training(1995, 2000), Customs Cooperation, (1998), Veterinary Equivalency (1998),

    Competitionwith

    Cooperation

    (1999),

    Wine

    and

    Spirits

    (2004),

    Civil

    Aviation

    Safety (2009) and ComprehensiveAir Transport (2009).1 Thejoint committeesestablishedundertheseagreementshaveprovidedtheopportunityformeetingsofbothparties inboth formaland informalvenues. Inaddition, the 1998EuropeanCanada Initiative (ECTI) established a framework for future negotiations toenhancecooperationontraderelatedissues,bothmultilaterallyandbilaterally.

    TheCETAnegotiationsrepresentthesecondattemptinlessthanadecadebytheEUandCanada toexpand theireconomic relations.2Since2000,cooperation inmutualfieldsofendeavorsuchasfisheries,environmentandenergyhasincreased.

    In2004

    Canada

    and

    the

    EU

    undertook

    anambitious

    agenda

    todeepen

    social,

    economic and political ties through a Trade and Investment EnhancementAgreement (TIEA)with its stated purpose being the elimination of nontariffbarriers to the movement of goods and services, in addition to resolution oftraditional market access issues such as tariffs and freer movement of capital.However,TIEAnegotiationsweresuspendedin2006,officiallytoallowthestalledWorldTradeOrganization(WTO)Doharoundofnegotiationstocomplete,butpractically due to the EUs insistence that the agreement include Canada's

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    provinces and territories sincebarriers tomarket access in areas such aspublicprocurement are in large measure within provincial jurisdiction. Reciprocally,Canada would be able to penetrate the EUs local national and sub nationalmarkets through increasedEU tradeandcommercial liberalization.Some in theCanadiangovernmentsawthatagendaasbeingtooambitioustodeliverandthe

    Europeanswere

    loathe

    to

    continue

    discussions

    excluding

    domestic

    public

    procurement. Nevertheless, the Canadian government motivated by its tradeliberalizing agenda acted domestically by engaging provincial and territorialgovernmentstosupportaCETAthatwouldincludebindingcommitmentsontheirpart as well as mounting a vigorous lobbying campaign aimed at various EUmember states to convince themof themeritsofabilateral tradepactbetweenCanadaandtheEU.

    Theother factorcontributing to theabandonmentof theTIEAnegotiationswasthatsuchanagreementcould imperilrelationsandcommitmentswithCanadianandEUtradingpartners intheDoharoundprojectedtoconcludeby2007.Dohadid not come to fruition, rekindling interest in a CanadaEU trade pact,culminating in thecommitment tonegotiatingacomprehensiveeconomic tradeagreementbetweenCanadaandtheEU.

    This fortuitous convergence of Canadian and European strategies to liberalizetradeandincreasethecompetitivenessoftheirrespectiveeconomiessetthestagefortheOctober2008CanadaEUJointStudy,AssessingtheCostsandBenefitsofaCloserEUCanadaEconomicPartnership(theJointStudy)3.Botharecommittedto building stronger and more competitive economies by securing favourablemarket access terms, attracting foreign investment, innovation and expanding

    their

    international

    commercial

    networks

    to

    provide

    support

    for

    their

    multinationals toexploit foreignbusinessopportunities.TheJointStudy laid thegroundworkforthecommencementofnegotiationstowardCETA.

    CanadaandtheEUhavedifferingmotivesforenteringintotheCETAnegotiations.SomeauthorspointtotheEuropeandesiretodiversifyintodifferentsectorsoftheCanadianeconomy,especially in services andgovernmentprocurement.Canadamay be trying to level the playing fieldvisvis third country producerswhoalreadyhavepreferentialaccessintotheEuropeanmarket.4

    There has been some suggestion thatCanadian disillusionmentwith theNorthAmerican Free TradeAgreement (NAFTA) and stalled multilateral initiativessuch as Doha and FTAs with the Americas and AsiaPacific region have alsoprovided incentive for CETA negotiations. Europe is seen as a partner tocounterbalance American influence and reduce Canadian dependence on theUnited States, especially in light of the effect of the US economic crisis onCanada.5

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    2. JointStudyandScopingReport

    ThedecisiontolaunchCETAnegotiationswasbasedontheJointStudyandtheirscope was defined in the March 2009 CanadaEuropean Union Joint Report:TowardsaComprehensiveEconomicAgreement(theScopingReport)6.TheJointStudy, a costbenefit analysis, concluded that increased trade with the EU,Canadassecondlargesttradingpartner,wouldgeneratesignificantneweconomicopportunitiesacrossanumberofsectors.Itdeterminedthatanagreementintheform of the comprehensive economic trade agreementwould enableCanada toincrease itsexportofgoodsandservices to theEUby$12.5billion (8.5billion),whileEUexportsdestined forCanadawould increaseby$25billion(17billion).Thestudyshowedthereareimportantbenefitsforbothsidestopursuingaclosereconomicpartnership.AnagreementcouldbenefitmanysectorsoftheCanadianeconomy,includingaerospace,chemicals,plastics,aluminum,woodproducts,fish

    andseafood,

    automotive

    vehicles

    and

    parts,

    agricultural

    products,

    transportation,

    financial services, renewable energy, information and communicationtechnologies, engineering and computer services, among others.The study alsoillustrated the potential for enhancing the relationship in areas such asinvestment, labour mobility, regulatory cooperation, environment, and scienceandtechnologythroughremovalofnontariffbarriers(NTBs).

    The ScopingReport concluded that amaximum degree ofbenefit toboth sideswouldresultfromamaximumdegreeofliberalization.TheJointStudyoutlinedabroadandambitiousnegotiatingagenda, including: trade ingoodsand services;

    investment;

    government

    procurement;

    regulatory

    cooperation;

    intellectual

    property; temporary entry of business persons; competition policy; labourmobility;andenvironment.

    TheJointStudyreliesonempiricaldatathatpredatesthe2008financialcrisisandthe2010debtcrisis,andassumesthesuccessfulcompletionoftheDoharoundofWTO negations. Nevertheless, it provides a solid economic basis onwhich toconducthighlevel tradenegotiations.7The extentofmutual gainsunderCETAaccruingdue to cost reductions from liberalization of services and reduction ofNTBs depends on the openness of the final agreement and some exogenousfactors.8Theseexogenous factors includethosedriving foreigndirect investment

    (FDI)such

    asGDP

    and

    business

    cycles,

    factors

    related

    toprices

    ofdomestic

    currenciesandnaturalresources,andfactorsrelatingtotheperformanceoftheUSeconomy.9 Another factor that potentially limits the accuracy of the gainspredictionsintheJointStudyisthepost2008riseinprotectionism,anexampleofwhichistheUSBuyAmericancampaign.10

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    TheJointStudyisonlyanillustrationofthepotentialimpactofCETA.Theactualoutcome is impossible to predict in light of the stalledDoha negotiations, theassumptionthatalltariffsandtariffratequotaswillbeeliminated,includingthoseinsensitiveagriculturalandindustrialsectors,anddoesnotconsidertheeconomicimpactofopeninggovernmentprocurementmarketsandchanginglevelsofFDI.11

    However,the

    stalled

    Doha

    talks

    and

    other

    multilateral

    agenda

    can

    also

    beseen

    as

    amotivating factor forbilateralagreements suchasCETA.12TheScopingReportrecommends that in the areas under negotiation, the parties aim to go beyondcurrentWTOprovisions.13

    Againstthisbackdrop,theGovernmentofCanadaandtheEuropeanCommission(EC) concluded an agreement to initiate negotiations for a comprehensiveeconomictradeagreementattheMay6,2009Canada EUsummitinPrague.

    CanadaandtheEUhavecompletedtheninthroundofnegotiationstowardCETA.They are committed to building on the success of negotiations thus far,wheresignificantprogresshasbeenmadeacrosstheboard,includingtheareasofgoods,services,investment,governmentprocurementandmanyothers.Thenegotiatingtext is said to bewelladvanced,withmany chapters closed or parked pendingfurtherdevelopment,andissuesintheremainingchaptersnarroweddowntokeydifferenceswheresolutionsarebeingactivelyexplored.

    3. CurrentCanadaEUTrade

    CanadaandtheEUhavealonghistoryofeconomiccooperation.Composedof27MemberStateswitha totalpopulationofover500millionandaGDPofnearly$16.8

    trillion

    in2010,

    the

    EU

    isthe

    worlds

    largest

    single

    common

    market,

    foreign

    investor and trader.As an integratedblock, theEU representsCanada's secondlargesttradingpartneringoodsandservices.In2010,CanadiangoodsandservicesexportstotheEUtotaled$49.1billion,andimportsfromtheEUamountedto$55.2billion.

    Canada and the EU already share strong trading bonds. Canada is the EUseleventhlargestpartner for trade inmanufacturedgoodsand theEU is secondlargesttradingpartnertoCanada.Fortradeinservices,Canadaaccountsfor2.2%oftheEUtotal,andtheEUfor16%oftheCanadiantotal.AccordingtoStatistics

    Canada,the

    EU

    isthe

    second

    largest

    source

    ofFDI

    inCanada,

    with

    the

    EUs

    FDI

    totaling$148.7billionat theendof2010. In2010,Canada'sEUFDIamounted to$145.7 billion, 23.6% of Canadian direct investment abroad. Eurostat identifiedCanadaas theEUs third largestFDIdestinationand its fourth largest sourceofFDI in 2009. Bilateral economic relations with the EU are very important toCanada,and thiseconomic relationship isahighpriority for theGovernmentofCanada.

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    Thesestatisticsnotwithstanding,manystudiescharacterizetheCanadaEU traderelationshipas "underperforming".Oneof the findingsof theJointStudy is thattheCanadianEUeconomicrelationship issignificantlyundertraded.Comparingtotaltradein2006,tradebetweentheEUandCanadawasroughlythesamelevelas tradebetweenEUand India,despiteCanadaseconomybeing 1.5 times larger

    thanIndias.

    Acomparison

    between

    Canada

    and

    South

    Korea

    shows

    asimilar

    situation:Canadas total tradewith the EU in 2006was 25% lower than SouthKoreas,howeverCanadasGDPwas1.5timesthesizeofSouthKoreas.14

    Canadaand theEUhave in common theUnitedStatesas theirmost importanttradingpartner,eventhoughCanadaismorereliantonUStrade(80%versus16%for the EU). Canadian trade dependence on the US, and its consequentvulnerability,particularlyintimesofeconomiccrisis(asexperiencedtheselastfewyears), makes the rationale for diversifying international markets a businessimperative. The American Recovery and Reinvestment Act, restricting foreignparticipationinUSinfrastructureprojectsimmediatelyleapstomind.Withanewtrade agreement in place between Canada and the EU, US businesses willdoubtlesslyexperienceanerosionoftheircompetitivenessinEuropeandCanada,aswellasareversalofthetradediversioncreatedbyNAFTAattheexpenseoftheEU.The privileged relationship betweenCanada and theUS framed byNAFTAwill,inmanyways,beovershadowedbythenew,farreachingagreementwiththeEUwhichcouldconceivablyopenthedoortonegotiateexpandedagreementswiththeUnitedStates,bothforCanadaandtheEU.

    Moreover, Canada and the EU share a public commitment to improving thebusiness environment for small andmedium enterprises (SMEs). Institutional

    changestaking

    place

    inthe

    EU

    asaresult

    ofthe

    Lisbon

    Treaty,

    the

    Treaty

    ofthe

    European Union (TEU") and the Treaty on the Functioning of the EuropeanUnion (TFEU")containprovisionsaimedat reinforcingdemocracy, transparencyand dissemination of information in all its dimensions. The Lisbon Treaty alsostrengthened the framework for the design of policies targeted specifically forSMEsculminatingintheEUsadoptionoftheSmallBusinessActin2008,asetofprinciples guiding the design and implementation of policies to promote SMEgrowth,bothatEUandnationallevels.

    Inaddition,theEUSingleMarketActiswellonitswaytoachievingharmonization

    of

    regulations

    and

    standards

    governing

    industrial

    production

    of

    goods

    and

    services, labour mobility, access to finance, recognition of professionalqualifications, and unitary patent system and broadening access to publicprocurement. This augurswell for Canada in that Canadian businesses and inparticularSMEswillfindmarketpenetrationeasierinanEUsinglemarkethavingtodealwithasinglesetofharmonizedregulationsandstandards.

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    Many EU member states have extensive bilateral economic relationships withCanada,mostnotablytheUnitedKingdomandFrance,baseduponcenturiesoldhistoricaltradition. VirtuallyallEUmemberstateshavebilateralagreementswithCanada in areas of social and economic cooperation such as social security,avoidance of double taxation and prevention of tax evasion, air transport,

    promotionand

    reciprocal

    protection

    ofinvestments,

    etc.

    SeveralCanadianprovincesandterritoriesenjoyformalizedculturalandeconomicrelationshipswithEUmember states and in some instances, regionswithinEUmember states through memoranda of understanding and agreements oncooperation in cultural, social and industrial, technological and scientificcooperation arrangements are projects with projects. Predictably, Qubec hasdeveloped a strong andbroadreaching culturaland economic relationshipwithFranceoverthelast50years.

    4.Scope

    CETAmoves beyond traditional free trade arrangements such asNAFTAwhichemphasize tariff and customs duties reduction and/or elimination. It is beingtoutedasasecondgenerationtradeagreementfocusingonremovingobstructiveNTBs such as domestic regulations, standards and procedures that impede theflow of goods and services between countries. Negotiations cover 22 areasstraddlingboth tariffandwill followNTB issues.Topics forareasofnegotiationincludethefollowing:

    tradeingoods; sanitary and phytosanitary issues (food safety, animal and plant health

    measures);

    technicalbarrierstotrade; tradefacilitation; customsproceduresandrulesoforigin; crossbordertradeinservices,includingmutualrecognitionofprofessional

    qualifications; investment; centralandsubcentralgovernmentprocurement; regulatorycooperation(lawsandprocedures); intellectualproperty; temporarymovementofbusinesspersons; competitionpolicyandrelatedmatters(monopoliesandstateenterprises); institutionalarrangementsanddisputesettlement;and sustainabledevelopment.15

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    The core areas for negotiation are market access for agricultural and nonagricultural goods, trade in services, investment protection, governmentprocurement, NTBs to trade and regulatory cooperation, intellectual propertyprotection,labourmobilityanddisputesettlement.16

    Tariffbarriers

    have

    byand

    large

    been

    eliminated

    bythe

    General

    on

    Agreement

    on

    Trade and Tariffs (GATT) and theWTO. Current tariffs a relatively modest.CanadiangoodsexportedtotheEUaresubjecttoanaveragetariffof2.2%whilethose from the EU entering theCanadianmarket face an average levy of 3.5%.While generally low, evenminimal tariffs constitute a competitivedisadvantageandcandivert trade.17Tariffpeaksexist insomesectors thateffectivelyprohibittrade. Peaks for the Canadian dairy market reach up to 200%,with peaks foranimalproductsandcerealsat33%and20%respectively.FortheEU,peaksreach56%fordairyandfrom20%to30%fordrinks,cereals,andanimalproducts.18

    The

    Joint

    Study

    concluded

    that

    the

    largest

    proportion

    of

    gains

    expected

    from

    CETAcomenotfromthereductionoreliminationoftariffs,butfromliberalizationof trade in servicesandFDI.Theextentof thebenefitwilldependon theexactcontentsofCETAsprovisions.19

    Each round ofCETA negotiations alternates betweenOttawa andBrussels.Thefirst round took place inOctober 2009 inOttawa, the second round of CETAnegotiationstookplaceinBrusselsinJanuary2010,athirdroundinOttawafrom19to23April,aforthroundinBrusselsfrom12to16July,afifthroundinOttawafrom18to22October2010,asixthroundinBrusselsfrom17to21January2011,aseventhroundinOttawafrom11to15April,aneighthroundinBrusselsfrom11to

    15July

    and

    aninth

    round

    inOttawa

    from

    17to21October

    2011.20

    No draft agreements have been officially released or published. Copies ofdocumentspurporting tobe leaked textshavebeenpostedonvariouswebsites.The leaked documents seem to reveal thatnegotiations are advancing and thatall,ifnoteverythingisonthetable.21

    5. CurrentObstacles

    Tradeand investmentbetweenCanadaand theEU facesanumberofstructuralimpediments.Someof thesesareanaturalconsequenceofthe federal/provincialdivisionofpowers inCanada thatproducesa fragmentationofjurisdictionovertradeandinvestmentissues.

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    5.1 ProvincialRegulationsAmongthemoreprominentformsofNTBsareprofessionalqualificationsthataregoverned by provincial legislation in most Canadian provinces and territories.Licenses and accreditation are frequently grantedby selfregulatingprofessionalbodies such as law societies, associations of professional engineers, medicalcolleges,

    etc.

    Mutual or reciprocal recognition and accreditationofprofessionalqualificationsand designationswould go a longway to eliminating this nontariff barrier byenhancing the ability of professionals to move between jurisdictions, thusfacilitatingtheflowofgoodsandservicesbetweenCanadaandEU.

    Trade ingoods isalsoaffectedbyprovincial regulatorydifferences.Forexample,the provincially regulated retail andwholesale of alcoholic beverages can be asourceof tradedistortion.22Federaland interprovincial/territorialdifferences in

    corporateregulations,

    health

    and

    safety

    standards

    and

    value

    added

    taxes

    not

    only

    constitute internal trade barrierswithinCanada 23 but also create inefficienciesandimpedimentsinfortradegoodsandservicesandFDI.

    5.2 PublicProcurementGiventhemagnitudeofgovernmentprocurementinCanadaandintheEU,itisnosurprisethat liberalizationofpublicprocurementhasascendedtothetopof the

    agenda.

    It

    represents

    great

    untappedpotential

    for

    both

    Canadian

    and

    EU

    exporters, and perhaps more so for European exporters in that many EUcompanies areworld leaders in areas such as transportation equipment, publicworksandutilitiesandinfrastructuredevelopment.Areasofparticularinterestwillbe power generation, public transportation, waste management and watertreatmentplants.Canadatoo,hasitsshareofpotentialexportersofinfrastructureservicesandgoods,albeitonasomewhatsmallerscale thanEUexporters.Fromthe outset the EU has made it a priority to obtain broad access to Canadiangovernmentprocurement,bothonthenationalandprovinciallevel.

    EU companies are at adisadvantagewhen responding to calls for tenders fromprovincial

    and

    territorial

    governments

    on

    infrastructure

    and

    other

    projects,

    aswell

    asinwhathascometobeknownasthe"MASH"sector,municipalities,academicinstitutions,schoolsandhealthandsocialservicesorganizations.

    Canada, as a signatory to the WTO Agreement on Government Procurement("GPA) is generally amenable to opening its public procurement process toforeignsuppliers.However,asweallknowCanadascommitmentundertheGPA

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    is greatly diminished by the exemption of the subcentral (i.e. provincial,territorial,andmunicipal)andother(i.e.CrownCorporation)markets.Theloneexception isthe2010Canada USProcurementAgreementwhichprovidestheUSandCanada some reciprocal access to each other's public procurementmarket.Withinitsmemberstates,theEUhasmadeprovisionsforprocurementatthesub

    centraland

    other

    levels,

    but

    has

    closed

    these

    sectors

    toCanadian

    firms

    on

    the

    basis of reciprocity. Consequently the EU has insisted that Canada includerepresentatives from provincial and territorial governments in the CETAnegotiationsoaccesstogovernmentprocurementcanbedealtwithconclusively.

    The balance to be found is between citizens demands for greater efficiency inpublicspendingandsubcentralgovernmentsdesire tousepublicspendingasatooltoservepoliticalinterestssuchasboostinglocalproduction,orjobcreation.24A European Commission study of increased intraEU competition for foreignprocurement showed price reductions of around 30%.25 However, loss ofgovernmentcontrolandpolicyspaceisanissue.Municipalitieswishtoretaintheflexibility tomake strategic decisions aboutwhat is best for them in their owncircumstances quality of infrastructure and products, standards, local jobs,environment,cost,taxpayervalueandthelike.

    Government procurement tends to follow strict guidelines and policies withrespect to environmental stewardship. Thiswillbe the case even after aCETAwiththeEUisimplemented.

    ThroughtheSingleMarketAct,theEUisseekingtoprovidesimplerprocedurestothose who manage public procurement, and allow them to support socially

    responsibleand

    environmentally

    friendly

    approaches.

    The

    EU

    also

    places

    emphasis

    on maximizing the acceptance and respect of European values and rules andrelationshipswith its tradingpartnerswith theobjectiveof reaching "reciprocalopening" of public procurementmarkets. The goal is to provide Canadian andEuropeansupplierswithopen,transparentandnondiscriminatorymarketaccessto each others government procurement markets. Thus the EU has made theopeningoftheCanadianmarketforpublicprocurementanessentialconditionofCETA.26

    5.3 SupplyManagementThe agricultural sector is strongly entrenched, socially and politically in bothCanada and EU.Canadian agricultural goods enjoy export subsidies and supplymanagementmechanisms such asmarketing boards and dairy quotas. The EUCommonAgriculturalPolicy,ontheotherhand,isseenbyCanadianproducersasanimpedimenttoCanadianexportstotheEU,particularlywine.Subsidiesarean

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    areaofconcernas theydistortcompetitionandconstituteabarrier totradeandinvestment.

    Agriculturalsubsidies,however,arenotatopicofCETAnegotiationsasthisisonearea of considerable friction at theDoha negotiations. The EU position is that

    removalofsubsidies

    isnot

    anappropriate

    area

    ofbilateral

    negotiation

    astheir

    removalwouldbenefitallWTOmembers,notsimplythepartyontheotherendofabilateralnegotiation.27 Ifconcessionsweremade,provisionswoulddelimittherightsandobligationsofthePartiesinrespectofsubsidies.

    5.4 WTOSanitary&PhytosanitaryStandardsSanitary and Phytosanitary standards (SPS) are the standards and regulations

    countriesadopt

    vis

    vis

    imports

    ofplants

    and

    animals

    inorder

    toprevent

    the

    introductionor spreadofplantpests,pathogensorharmfuladditives that theseproductsmay contain.As such, thesemeasures aredesigned toprotecthuman,animal,andplantlife.

    SPSstandardscanfunctionasNTBsastheyoperatetodelayimportsandincreasecosts by requiring certification or by barring importation completely.Canadianexportersintheagricultureandagrifood,fishandshellfishsectorsareconcernedaboutcurrentEuropeanNTBsintheguiseoftheseregulatorystandards.Thereis,however, significant concern in Europe about genetically modified organisms(GMOs)andthepracticeofaddinghormonestomeatproducts.

    There isdivergencebetweenCanadianandEuropeanapproachestoSPSmatters.Canada,muchliketheUS,usesasciencebasedapproachtoSPS,settingstandardsfor products or additives based on scientific evidence of harm. The EU on theother hand uses a societybased approach, setting standards based on publicperception ofharm.This approach stems from experienceswherepublic healthcrisesarosewhere therewasnopriorscientificevidenceofdanger,suchaswithBovineSpongiformEncephalopathy(BSE),ormadcowdisease.28

    In order to overcome these divergent approaches, CETA should at minimum

    affirmand

    enhance

    commitments

    under

    the

    WTO

    Agreement

    on

    Sanitary

    and

    Phytosanitary Measures (SPS Agreement) and the continued use of theWTOdisputesettlementprocedures forany formaldisputesregardingSPSmeasures.29Goingbeyond theWTO agreement,CETA shouldprovide forharmonizationorreciprocal recognition of each others standards and norms and eliminateexceptions.

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    CETA should also create an SBSCommittee toprovideoversight.ConsiderationcanbegiventotheestablishmentofabilateralmechanismtomanageSPS issuessoastoavoiddisputes.

    5.5 MarketAccessAs noted above, tariffs imposed by both the EU andCanada are generally low.However, existing tariffs canhave anegative impact, especiallyon intrafirmorintraindustrytrade,wheretheyoperateasatax.TheJointReportnotesthatthesetariffs canbe the equivalent toup toonehalfof industryprofitmargins.30TheScopingReport estimates that onequarter to onethird of the overallbenefit tobilateral trade liberalization under CETAwould come from the elimination oftariffs.3196 to 98% of tariffswill be removed on the dayCETA is implemented,

    including99%

    ofindustrial

    products.

    The

    timeline

    for

    phase

    out

    ofagricultural

    and fish products remains to be determined (some speculate it may be sevenyears).Tradefacilitationprovisionstostreamlinecustomsprocessesandfacilitatethemovement of goodswill also improvemarket access, speeding up customsclearanceanddeliveryofgoodsandservicestoendconsumers.

    5.6 RulesofOriginTheobjectiveofrulesoforiginistoensurethatthebenefitsofanagreementflowto goods originating in the territory of either party. Canada and the EU havedifferingapproachestorulesoforigin.Canada,with itsmanufacturing industriesintegratedintotheUSunderNAFTA,preferslooserrulesoforigin.TheEU,ontheotherhand,prefersastricterapproach,with theaimofensuringthatgoodsthataretechnicallyCanadianarenotinfactofUSorMexicanorigin.32

    TheScopingReportrecommendsthatCETAhaveprovisionsforrulesoforiginthatareclear,assimpleaspossibleandleavelittleroomforadministrativediscretion.33Thisshouldensurethattherulesoforiginareadministeredinafair,effectiveandtransparent

    manner

    bycustoms

    administration

    and

    toprovide

    the

    trading

    communitywith themeans totakeadvantageofthepreferentialtariff treatmentcontemplatedunderCETA.

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    5.7 IntellectualProperty

    The EU seeks stronger enforcement of the WTO Trade Related Intellectual

    Property

    Rights

    Agreement

    (TRIPS)

    and

    1970

    United

    Nations

    World

    Intellectual

    PropertyRightsOrganization(UNWIPO).Theserepresentaminimum levelofprotection for intellectual property rights (IPR). Although IPR protection isstrong inCanada,someEuropeanstakeholdersareof theopinion thatCanadianstandards do not go far enough. EU stakeholders also complain that IPRenforcementinCanadaisdifficulttoactivate,beitthroughthecourts,customs,orpolice. The division of responsibilities between the Canadian Border ServicesAgency (CBSA) and Royal Canadian Mounted Police (RCMP) complicatesmatters. From the European perspective, harmonization would mean bringingCanadian standardsup toEuropean levels.AEuropean IPREnforcementReportreleased in 2009 identified Canada as a priority country due to issues with

    copyright,pharmaceutical

    patents

    and

    geographical

    indications.34

    For

    example,

    theEU ispressuringCanadatoagreetoEUIPstandardssuchas longereffectivepatent terms,more stringent data protection and right of appeal for researchbasedpharmaceuticals.

    However, IPR issues in other areas, particularly for pharmaceuticals, are moreproblematic. Canadas patent protection regime is criticized for not protectingbrandname drugs enough; on the other hand, themuch lower cost of genericdrugsisimportanttoCanadaforcontrollinghealthcarecostswhicharespiralingoutofcontrol.ThisputsCanada inan interestinganddelicateposition witha

    thriving

    brandname

    pharmaceutical

    industry

    and

    a

    thriving

    geneticpharmaceuticalindustry.ThetalkswiththeEUhavehighlightedthisdivergence.

    Differences in the two parties legal systems create multiple standards andprocedures for IPR registration, all ofwhich is seen to constitute a significantcollectionofallkindsofNTBs.35CETAaimstoharmonizestandards,provideformutual recognitionof IPR,and improve the transparencyofbothEuropeanandCanadian IPR regimes. The EU Single Market Act has identified adoptinglegislation establishing unitary patent protection and a unified patent litigationsystem throughout theEU aspriorities.AlthoughCanada is criticized forbeingweak in protecting intellectual property it is moving toward significantimprovements

    toour

    Copyright

    Act*,

    which

    hopefully

    will

    bring

    Canada

    inline

    withinternationalstandards.

    *BillC11,AnActtoAmendtheCopyrightAct,receivedsecondreadingandreferraltoCommitteeintheHouseofCommons13February,2012andCommitteereportpresented15March,2012.

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    5.8 GeographicIndicationsTheJointStudynotesthedifferingviewpointsongeographicindications(GI)putforwardbyEuropeandCanadaatWTOnegotiations.TheEuropeanCommunitypressed for a mandatory registrywith legal effect,while Canada, among othernations,

    argued

    for

    avoluntary

    registry

    with

    no

    legal

    effect.36

    The

    EU

    views

    GIas

    important in thecontextof the reductionof subsidies to largescaleagriculturalproduction.GI is seen as amethod ofprotecting smallproducers in the globalmarket.37

    Currently,certificationmarksrelatingtoGIcanberegisteredinCanadaunderthefederalTradeMarksAct,butonlyifnopriorregistrationhastakenplace.Thishasled to the infamousexampleof theEuropeanGI forProsciuttodiParmabeingunregisterableinCanadaduetoapriorCanadianownedtrademarkforParma.38

    Alist

    of180

    goods

    focused

    on

    cheese,

    meat

    and

    wine

    &spirits,

    was

    submitted

    bytheEU forGIprotection. This isasourceofcontroversybecausebeforeCanada

    offersGI concessions itwillwant to knowwhat the EU is prepared to offer inexchange.

    5.9 ServicesTheEU,astheworldslargestexporterofservices(30%oftheglobalshare)39,hasastrongincentivetoliberalizetradeinservicesbeyondtheminimumstandardsset

    bythe

    1995

    WTO

    General

    Agreement

    on

    Trade

    inServices

    (GATS).

    GATS

    distinguishesbetweenfourmodesofsupply:

    Mode 1: Crossborder supply is defined to cover services flows from theterritoryofoneMemberintotheterritoryofanotherMember(e.g.bankingorarchitecturalservicestransmittedviatelecommunicationsormail);

    Mode2:Consumptionabroadreferstosituationswhereaserviceconsumer(e.g.touristorpatient)moves intoanotherMember'sterritorytoobtainaservice;

    Mode 3: Commercial presence implies that a service supplier of oneMember establishes a territorial presence, such as ownership or lease ofpremises,inanotherMember'sterritorytoprovideaservice(e.g.domesticsubsidiariesofforeigninsurancecompaniesorhotelchains);and

    Mode 4: Presence of natural persons consists of persons of oneMemberentering the territory of another Member to supply a service (e.g.

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    accountants, doctors or teachers). TheAnnex on Movement of NaturalPersons specifies, however, thatMembers remain free to operate despitemeasures regarding citizenship, residence or access to the employmentmarketonapermanentbasis.40

    GATSseeks

    togradually

    liberalize

    trade

    inservices

    across

    allfour

    modes

    by

    establishingasystemofrulesbasedonprinciplesofnondiscrimination.

    Liberalization of trade in services is complicated by regulation of thevariousmodes falling under the jurisdiction of both national and subnationalgovernments. Including the provinces and territories in the CETA negotiationsaddressesthiscomplication.

    Other barriers include foreign ownership caps on commercial establishments,restrictionsonthetypesofcommercialpresenceandtypesofservicesthatcanbe

    offered,

    and

    discriminatory

    treatment

    giving

    advantages

    to

    domestic

    companies,

    suchasregistrationandnationalityrequirements.

    TheJointStudyacknowledgedthedifficultyinquantifyingpotentialgainsfromtheliberalizationof trade inservices.However, itcitedanestimateof theadditionalcostofcurrentbarrierstotradeinservicesas2452%ofservicesintoCanadaand1842%ofservicesintotheEU.41TheEUSingleMarketActaffirmsthatservicesareamajordrivingforcebehindjobcreationinEurope.AccordinglytheEUidentifiedaneedforstandardizationwhichisessentialformakingproceduresmoreeffective,efficientandinclusive.

    Theservices

    provisions

    ofCETA

    are

    broad,

    with

    improvements

    tobemade

    the

    utilities, construction, trade, transportation, communication and information,financialservicesandsecuritiestrading,insurance,business,consumer,andpublicservicesareas.

    Canada is especially keen to gain access to Europe to deliver architectural,engineeringprofessional,distribution,environmental,and logisticsservices.BothCanadianandEuropean stakeholders raiseconcernsabout theopennessofeachothers telecommunications servicesmarkets,where cross border issues includebilling systems, privacy, spectrum allocation, security, and licensing.42 For

    financial

    markets,

    the

    lack

    of

    a

    national

    securities

    regulator

    in

    Canada

    creates

    inefficiencies.However, the incentive to liberalize financial servicesmay stillbelow in light of the recent financial crisis. Barriers to labour mobility such aslicensingrequirementsbothacrossandwithincountriesalsoadverselyaffecttradeinservices.

    CETAwillnotaddressanyregulatorychangesinthebankingsector.Other likelyexemptionsincludeeducation,healthandpublicservices.CETAprovisionswould

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    provideforimprovedmarketaccess,transparencyandpredictabilityforCanadianandEU serviceproviders.According to theJointStudy, liberalizationof trade inserviceswouldaccountforalargeportionofprojectedGDPgains:50%ofthetotalgainsfortheEUand45.5%ofthegainsforCanada.43

    5.10 CooperationMechanismsCooperationmechanismsarenecessaryinareaswherejurisdictionalcompetencyisdividedbetweenthenational(federal)andsubnational(provincialandterritorial)levels. TheJoint Study identifies the following areas as thosewith existing orpotential forbilateralcooperation:scienceand technology,energy,environment,transportation,customscooperationandtradefacilitation,employmentandsocialaffairs, movement of people, education and training, competition policy, and

    fisheries.

    MostEuropeanenvironmentalandemploymentstandards legislation isgenerallyseen to bemore expansive and rigorous thanCanadian laws.Where regulatorystandardsdiverge,thesestandardsmustbeharmonizedsoasnottogiveonesideortheotheranunfairadvantage.Again,thisisanareaofpredominantlyprovincialjurisdictioninCanadasuchthatprovincialparticipationisessentialtotheprocess.

    Despite differences in regulatory approaches in areas such as energy andenvironment,CanadaandtheEUfacemutualenergysecurityandclimatechange

    challenges.

    These

    common

    challenges

    will

    provide

    impetus

    for

    future

    cooperation.

    Cooperation in the energy sector goes back to EURATOM in 1959, whereascooperationinenvironmentalmattersdatesfrom1975.

    In 2004 Canada and the EU entered into a broad Framework on RegulatoryCooperationandTransparency,wherebytheregulatorsbothintheGovernmentofCanada and the European Commission are encouraged to cooperate. Theframework aims to improve regulatory governance, establish good regulatorypractices to create better regulations, facilitate trade and investment, promotecompetitiveness, and enhance the climate for innovation.44 The framework isimplementedbythe2007EUCanadaRoadmapforRegulatoryCooperation,which

    setsout

    sector

    specific

    areas

    for

    annual

    negotiation.

    The

    existing

    framework

    is

    limitedinthatitisnotlegallybinding,focusedonthegoodssectorandrestrictedtothenationalgovernmentlevel.ACETAwouldaddresstheseshortcomings.

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    5.11 LabourMobility&MovementofBusinessPersonsBarriers to labour mobility and the temporary movement of managerial,professional and executive personnel have been shown to exert a negativeinfluence on trade in services and investment. Special visas for investors,professionals,

    intra

    company

    transferees

    and

    others

    such

    askey

    personnel

    having

    special qualifications similar to those found in NAFTA are critical to wellfunctioning business operations. Expeditedwork permits to permit the flow ofskilledworkersonatemporarybasistofacilitatetradeingoodsandservicesthatobserve internationallyrecognized labourprinciplesandeffectiveenforcementofdomestic labour lawsarekeyfeatures.Fivecategoriesofbusinesspersonswillberecognized:shorttermvisitors,intracompanytransferees,professionals,investorsandmanagement/graduate trainees.Expeditedvisas, spousalvisas and entry forskilledtechniciansarealsoincluded.

    Mutual

    recognition

    of

    diplomas

    and

    qualifications

    and

    simplifying

    andmodernizingrulesfortherecognitionofprofessionalqualificationsarealsounder

    discussion.Great enthusiasm exists formutual recognition and accreditation ofqualificationsandcredentials.NegotiatorsarebuildingonanexistingagreementbetweenQubecandFrance(whichcoversabout80professions).

    5.12 InvestmentThere

    are

    numerous

    factors

    that

    influence

    flows

    ofinvestment,

    some,

    such

    asGDP

    fluctuationsandbusinesscyclesareexogenoustoCETAsmandate.45 Barriersnotonly encompass regulatory limitations to FDI, but also barriers to services andlabourmovement(GATSmodes3and4). Forexample,aWTOstudyfoundthata10% increase inmovementof temporaryworkersproducedan increaseof8% ininflowand7.1% inoutflowofFDI.46 TheJointStudy identifiesbarrierstoFDIasboth specific (e.g. formal limits to foreign investment in particular areas) andgeneral,basedonthewiderframeworkoftheregulatoryenvironment.FDIbarriersnot only affect the ability of investors to acquire foreign businesses, but alsopreventbusinessesfromsettingupsubsidiariesinthetargetforeignmarket.

    Acountrys

    overall

    openness

    toFDI

    isanimportant

    consideration.

    According

    to

    OECDdata47,CanadahasimproveditsopennesstoFDIsincetheJointStudywaspublished.TheOECDrankscountriesopennessto foreign investmentonascaleof0 (open) to 1 (closed). In2006,Canadas rankwas0.375. In 2010, itwas0.15.Despitethis improvement,Canadasopennessto foreign investment is limited incertain sectors. In Canada, for example, the media (o.7), fishing (0.6),telecommunications (0.35), and transport (0.27) sectors are restrictive. In

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    individualEUmemberstates,certainsectorsare likewiserestrictive, forexamplebusinessservices(Belgium:0.225),transport(Germany:0.275), fishing(Italy: 1.0),electricity (Austria: 1.0), and media (France: 0.285). Even where there are nospecific restrictions on a particular sector, different rules for foreign ownershipacrossdifferentprovincesandterritoriesleadstojurisdictionshopping.48

    The EU seeks nondiscriminatory measures in respect of financial institutions,includingeliminationofownershipquotasandrestrictions.European investmentinCanadian telecommunications services isalsohamperedby limitson foreignownership,asmandatedbythefederalTelecommunicationsAct.ImprovementsintheseareaswouldprovideCanadianandEU investorswithgreatercertaintyandpredictabilityaswellasenhancedconfidencetoinvestintheterritoryoftheotherParty.

    5.13 RegulatoryCooperationandTechnicalBarrierstoTrade(TBT)

    TBT operate to restrict tradedespite the reduction of tariffs.Thesebarriers aretypicallynotintentional,butaretheresultofdifferencesintechnicalregulations,standards, or conformance assessment procedures.49 In the telecommunicationssector, forexample, theAgreementwillensure thatregulationsgoverningpublictelecommunicationstransportnetworksandservicesdonotimpedemarketaccesscommitments, aswell as providing an open and competitive market for theseservices.

    Throughthebreadthofitsscope,CETAwouldpromotegreatercooperationinthefield of standardsrelated measures, address horizontal transparency issues,includingnotificationsandparticipationinconsultationprocesses,andestablishamechanismtoprovidedirectiononidentification,management,andresolutionofissuesdealingwithstandardsrelatedmeasurestoavoiddisputes.Theconsultativemechanisms for the effective resolution of disputeswould operate outside theformal dispute settlement framework. Such provisions could involve theestablishment of specific committees and/orworking groups. These provisions

    could

    also

    provide

    for

    a

    general

    exception

    allowing

    for

    the

    adoption

    and

    enforcementofmeasures toprotectanimalorplant lifeorhealth,andmeasuresrelatingtotheconservationofexhaustiblenaturalresources.

    The EU is moving in this direction and the SingleMarketActwhich seeks toincreasetheeasewithwhichpeople,goods,servicesandcapitalcancirculatefreelyfrom onemember state to another by simplifying procedures and reducing the

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    regulatoryandadministrativeburdens, inparticular, forexample,by simplifyingaccountingstandardsforbusinesses.

    5.14 MonopoliesandStateEnterprisesTheTreatyofRomewhichcreatedtheEuropeanCommunitycontainscompetitionprovisions in the form of antitrust and state aid. In addition, the Commissionregulationsprovideformergercontrolrules.CanadaregulatescompetitionviathefederalCompetitionAct.Bothpartieshaveahistoryofregulatingcompetition,

    Intheareaofstateaid,CanadaandtheEUhavedifferentapproaches.IndividualEUmemberstatesmustcomplywiththeEUprohibitiononanysubsidiesorstate

    aidhaving

    anadverse

    impact

    on

    competition.

    InCanada,

    state

    aid

    isself

    regulated

    atthefederalandprovincial/territoriallevels.50

    The Scoping Report refers to the 1999Agreement between the Government ofCanada and the European Communities regarding the Application of theirCompetition Laws as a good basis for cooperation and information exchangebetweencompetitionauthorities.ThegrouprecommendedthatCETAaddresstheissuesofstateaid,designatedmonopoliesandstate/publicenterprisessothattheydo not distort competition or create barriers to trade and investment.51 Suchprovisionsensure thatanticompetitivebusinesspracticesdonotundermine thebenefitsoftheAgreement.

    6. WhatsDifferentthisTime?

    Modern trade negotiations recognize that the nature of international trade hasevolved to thepointwhere traditional free tradeagreementswith their focusongoodsmovingacrossbordersareno longersufficient.The liberalizationofotheraspectsofinternationaltradesuchastradeinservicesandFDIhasthepotentialtoproducegains thateclipse thepotential gains from a simple reductionof tariffsand

    goods

    related

    NTBs.

    Agreements

    such

    asNAFTA

    and

    negotiations

    under

    GATT/WTOhaveaddressedorattemptedtoaddresstheseissues.CETA,however,aims to live up to its title and be truly comprehensive, going beyond pastnegotiations.

    Tostart,bothsidesagreethatCETAisextremelyambitiousinscopeandbotharecommitted to its successful conclusion as they have invested a great deal of

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    political capital in it. Commitment of the parties is evident from the fact thatnegotiationshavecontinueddespitetheshocksofthe2008financialand2010debtcrises.

    The provinces and territories are participating as full partners in negotiations

    alongsidefederal

    officials

    for

    the

    first

    time

    inthe

    annals

    ofCanada's

    foreign

    trade

    policy.This iscriticalas theProvinceshave to implementmostnontariffbarrierprovisions(labour,environment,publicprocurement,etc.)astheyfallwithintheirjurisdiction. Consequently, the EU is insistent that provinces participate innegotiationstoassurecompliancewithCETA.ThisisthekeydifferencethatsetsCETAapart.

    Anotherdifference isthenegative listapproach,whichstartsfromthepositionthat trade inallserviceswillbe liberalizedexcept thosespecifically identifiedasexceptions. Prior to CETA, the EU had always insisted on a positive list, an

    approach

    that

    required

    a

    listing

    of

    specific

    services.

    The

    negative

    list

    is

    the

    approachusedbyNAFTAandforgovernmentprocurementundertheWTOGPA.Theadvantageofthisapproachisbroadercoverageofsectors.

    CETA, in short, recognizes the realities of twentyfirst century internationalcommerce,withcomplexnetworksofvaluechainsand flowsofpeople,services,andideasacrossborders.

    7. Future

    CETAwill be the first comprehensive trade agreement between the EU and anOECD country. Itwill be a model or prototype for a new generation of tradeagreementswhichmovebeyond theeliminationorreductionof tariffbarriers tothedismantlingofNTBs.

    It is understandable that the EU is investing enormous energy in the CETAnegotiationsasthiswouldcreateatemplate for futureeconomicandtradepactswithothernationsorgroupsofcountries.ItcouldconceivablysetthestageforaTransatlantic tradeagreementbetween theNAFTAcountriesand theEU.CETA

    mightalso

    catalyze

    the

    negotiations

    currently

    underway

    for

    the

    Transpacific

    trade

    agreementasothernationswillnotwanttobeleftbehindscramblingformarketaccessormissingoutonattractinginvestment.

    OntheCanadianside,givenprovincialandterritoriallegislativecompetenciesareimpacted, a CanadaEU deal could lead to harmonization of regulatory issuesamongtheprovincesandterritoriesastheymovetocompliancewithCETA.

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    Watson Goepel LLP 22

    It is important to realize the significance of the EUmarket mediadoom andgloomover recent fiscalproblems isexaggerated. Itunderestimates thestrengthandresiliencyEuropeanshavedemonstratedinrecoveringfromthedevastationoftwoworldwarsfoughtlargelyinEuropeaswellaslivingintheshadowoftheIron

    Curtainfor

    over

    forty

    years.

    With

    acombined

    population

    ofover

    500

    million

    inhabitants,or7.3%oftheworldpopulation,theEUgeneratedanominalGDPof16,242billionUSdollarsin2010,whichrepresentsanestimated20%ofglobalGDPwhen measured in terms of purchasing power parity. As the worlds largesteconomy ithasgrown from6membercountries from its inception in 1958 to27today and still growing. Therewill be expanded opportunities as newmemberstatesjoin.Croatia isexpected tobecome the28thmemberof theEUon 1July2013. Iceland, Macedonia, Montenegro, Serbia and Turkey are all officialcandidatesforadmissiontotheEU.Turkeyalone,withitsemergentmiddleclassis an exampleofuntappedmarketpotential that exists forCanadian goods and

    services.

    Expandedtradethroughenhancedmarketaccessisseenasmanyobserversastheway out of the economicwoes that have befallen the advanced and developedeconomies since2008.Financial restraintcanaccomplishonly somuch.Growththroughtradeistheothersideoftheequation.CETAandthevariousothertradepacts currentlybeingnegotiated are seen as the solutionbybusiness aswell asgovernmentstaskedwithcreatingconditionsconducivetoeconomicrecovery.Inaddition, by expanding and diversifying trade activities beyondNorthAmerica,Canadawill reduce its economic dependency on the United States, aswell asbecoming lessvulnerabletoeconomicshockssouthoftheborder.

    Endnotes

    1 Online: European Commission http://ec.europa.eu/trade/creating-opportunities/bilateral-

    relations/countries/canada/ [EC Bilateral Relations].1 Online: European Commission

    2 Alexandre Gauthier & Michael Holden, Canada-European Union Trade Negotiations p. 1. Overview of

    Negotiations, Library of Parliament, 2010 at 1 [Gauthier & Holden].3 EU Commission & the federal government of Canada (2008). Assessing the costs and benefits of a closer

    EU-Canada economic partnership. A Joint Study by the European Commission and the Government of

    Canada [Joint Study].4Jonne Kregting, The EU-Canada Comprehensive Economic Trade Agreement: An Evaluation of the Public

    Policy Debate and Assessment of its Potential Results, (Master Thesis, Aarhus University, Aarhaus School

    of Business, 2011) at 22 [Kregting].5 Christian Deblock & Michle Rioux, From Economic Dialogue to CETA,(2010-1011)International

    Journal, Winter 2010-2011,39 at 40 [Deblock & Rioux].6

    Joint Scoping Group, Joint Report on the EU-Canada Scoping Exercise, 2009 Online:

    http://trade.ec.europa.eu/doclib/docs/2009/march/tradoc_142470.pdf [Scoping Report].7Kregting, supra note 4 at 30.8Ibid. at 32.9Ibid. at 55-56.

    http://ec.europa.eu/trade/creating-opportunities/bilateral-relations/countries/canada/http://ec.europa.eu/trade/creating-opportunities/bilateral-relations/countries/canada/http://trade.ec.europa.eu/doclib/docs/2009/march/tradoc_142470.pdfhttp://trade.ec.europa.eu/doclib/docs/2009/march/tradoc_142470.pdfhttp://ec.europa.eu/trade/creating-opportunities/bilateral-relations/countries/canada/http://ec.europa.eu/trade/creating-opportunities/bilateral-relations/countries/canada/
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    10

    Kurt Hbner, CETA: Stumbling Blocks in Ongoing Negotiations, Canada-Europe Transatlantic

    Dialogue: Seeking Transnational Solutions to 21st Century Problems, (Ottawa: Carelton University, 2010)

    [Hbner] p. 2.11Gauthier & Holden, supra note 2 at 2.12Hbner, supra note 10 at 2.13

    ScopingReport, supra note 6 at 3.14Joint Study, supra note 3 at 18.15Gauthier & Holden, supra note 2 at 3.16Ibid. at 4.17Joint Study, supra note 3 at 36.18 Stephen B. Woolcock, The Canada-EU Comprehensive Economic and Trade Agreement (CETA)

    Towards a New Generation of FTAs?, in Kurt Hbner, ed.,Europe, Canada and the Comprehensive

    Economic and Trade Agreement, (New York: Routledge, 2011) 21 at 30 [Woolcock].19Kregting, supra note 4 at 11.20EC Bilateral relations, supra note 1.21Deblock & Rioux, supra note 5 at 53.22Kregting, supra note 4 at 26-27.23Ibid. at 58.24Hbner, supra note 10 at 3.25Joint Study, supra note 3 at 78.26Hbner, supra note 10 at 4.27Woolcock, supra note 18 at 31.28Ibid. at 33.29

    ScopingReport, supra note 6 at 3.30

    JointStudy, supra note 3 at 36.31Scoping Report, supra note 6 at 3.32Kregting, supra note 4 at 68.33ScopingReport, supra note 6 at 4.34Kregting, supra note 4 at 63.35Ibid. at 62.36

    Joint Study, supra note 3 at 87.37Woolcock, supra note 18 at 32.

    38Joint Study, supra note 3 at 87.39Ibid. at 4140

    Online: WTO GATS Objectives: 41

    Joint Study, supra note 3 at 44.42Ibid. at 89.43Joint Study, supra note 3 at 55.44Ibid. at 119.45

    Kregting, supra note 4 at 48.46Joint Study, supra note 3 at 65.47 B. Kalinova, A. Palerm and S. Thomsen (2010), OECD's FDI Restrictiveness Index: 2010 Update,

    OECD Working Papers on International Investment, 2010/03, OECD Publishing.

    http://dx.doi.org/10.1787/5km91p02zj7g-en48Kregting, supra note 4 at 65.49

    Woolcock, supra note 18 at 33.50Joint Study, supra note 3 at 143.

    51Scoping Report, supra note 6 at 7.