European Union

Overview

The European Union includes Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, The Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom.

Comprising 27 member states, with a total population of nearly 500 million, the EU is the world’s largest single market, foreign investor and trader. As an integrated block, the EU represents Canada’s second largest trading partner in goods and services.

Transatlantic investment has reinforced traditional trade relations as Canadian and EU firms increasingly sell through affiliates in each other’s markets. The headquarters of one third of Fortune Global 500 companies are located in the EU, making the EU home to important global value chain decisions. Key growth sectors of interest to Canadian companies in this market include information and communications technologies, aerospace and defence, life sciences, agriculture and agri-food, and environmental products, services and technologies.

For Canada, the EU is an important partner in science and technology (S&T)—helping to further Canada’s goal of becoming a world-leading knowledge-based economy. S&T cooperation is enabled by government-level agreements as well as agreements between Canadian and European S&T-oriented institutions and businesses. Canada and the European Union have had a Science and Technology Cooperation Agreement since 1996. This agreement reflects the parties’ mutual interest in facilitating scientific cooperation and provides for reciprocal self-funded access to S&T programs.

Although the large EU market offers important commercial opportunities for Canada, it also presents certain challenges. Among these are restrictions by some member states on mergers and acquisitions, market distortions in agriculture, uneven harmonization of regulations among member states, and a number of EU-imposed bans and restrictions related to health, environmental and consumer protection concerns.

• To search for specific trade and investment barriers to this market, please use our CIMAR Database on Foreign Commercial Barriers.

Market Access Achievements

• Twice a year, through the Trade and Investment Sub-Committee mechanism, Canada and the EU meet to discuss trade irritants, company issues and the possible resolution of concerns. In the past year, market access achievements have included the approval of canola variety T45 in the EU and some progress on regulatory approval processes for Canadian companies.
  
  
• At the Canada-EU Summit held on May 6, 2009, in Prague, Czech Republic, leaders agreed to launch negotiations toward a comprehensive economic partnership agreement. Canada and the EU had previously jointly established the scope and parameters for these negotiations, as outlined in the Joint Report on the EU-Canada Scoping Exercise. For more information, please see Chapter 3, Regional and Bilateral Free Trade Agreements and Other Initiatives.

Market Access Plans and Priorities

• In negotiations with the EU, Canada will seek an ambitious and comprehensive agreement designed to foster a stronger and balanced economic partnership with the European Union.
• Near-term priorities include continued engagement with EU counterparts on issues of concern to Canada, such as the ban on seal products, unnecessary inspections of wheat, the implications of chemical registration legislation, and the classification of nickel substances.