Meeting of the CETA Committee on Trade and Sustainable Development

March 20, 2025, Brussels (and via videoconference)

Joint report

The seventh meeting of the European Union - Canada Comprehensive Economic and Trade Agreement (CETA) Committee on Trade and Sustainable Development (TSD) took place on 20 March 2025, in Brussels, in a hybrid format. Officials from the European Union (EU) and Canada exchanged views on global developments and trade tensions, discussed their potential impacts on sustainable policies and exploring opportunities for cooperation under CETA. They provided updates on new policy developments and legislation pertaining to trade, labour, gender, climate and environmental aspects and related to ongoing negotiations and cooperation measures with third countries. In line with previous TSD meetings, the Committee was joined by the Chairs of the EU and Canadian Domestic Advisory Groups (DAGs) under CETA and welcomed their feedback and suggestions for collaboration under the CETA TSD chapters, as well as on CETA’s Civil Society Forum (CSF) held on 18 and 19 March 2025.

Global development after recent tension on sustainable development policies

The Parties voiced concern over the potential ripple effects that the repeal of climate, environmental or labour laws in other countries could have on nations closely tied to them through value chains or major trade partnerships. They also highlighted the risk such actions pose to the work of international organisations in these areas and committed to collaborating more closely bilaterally and in the relevant international fora.

In that context, discussions focused on ways to further leverage CETA, particularly by strengthening the work of its various committees and dialogues. The EU and Canada reiterated the importance of CETA’s full ratification, highlighting that showcasing its benefits and by-products could contribute to that process. The Parties agreed that there are opportunities to reinforce the Regulatory Cooperation Forum under CETA.  Both Parties expressed their interest in to reviewing the results of the CETA ex-post assessment, using its insights to guide their cooperation efforts in the coming years and inspire further engagement within the CETA committees and dialogues and the next CETA Joint Committee.

Trade and Environment and Trade and Climate Action

The EU provided an update on its Carbon Border Adjustment Mechanism (CBAM) regulation, the simplification package as proposed on 26 February 2025 by the Commission, and to be agreed by the Member States and the European Parliament. Canada shared recent updates to its carbon pricing system as part of broader developments in environmental and climate policy, and expressed support for its continued dialogue with the EU on CBAM.  The EU also clarified that the new de minimis threshold is intended to exempt more EU importers and highlighted that the evidence for proving the payment of carbon price would be streamlined, including the option to use default carbon pricing values.

The EU provided an overview of its new Clean Industrial Deal as its strategy to leverage decarbonisation and circularity. Canada and the EU highlighted the importance of the EU-Canada Green Alliance to support collaboration on decarbonization and climate action and environmental protection. The Parties also discussed their 2023 Nationally Determined Contributions.

Canada shared information on the launch of its new Water Agency and noted the potential for bilateral cooperation on water resiliency. Canada also noted the upcoming publication of two key resources—the Circular Economy Policy Inventory and the Circular Economy Initiatives Inventory—developed by the think tank Circular Economy Leadership Canada. These inventories will provide insights into collaborative efforts, existing gaps and provincial-level waste management practices. on The EU provided updates on recent legislative developments such as the Ecodesign for Sustainable Products Regulation. It also highlighted that the Commission would make the implementation of the current environmental legal framework a priority. Canada raised the launch of its new Federal Plastics Registry, which collects data from companies across the plastics value chain to help monitor and track plastics throughout their lifecycle. The Parties emphasized the value of bilateral cooperation through the CETA TSD workplan as well as engagement at the multilateral level. In this context, they highlighted the significance of joint efforts in the negotiations toward a Global Agreement on Plastic Pollution, and active participation in upcoming UN Water Conferences.

Trade and Labour

The EU provided an update on recent ratifications of International Labour Organization (ILO) conventions by its Member States, reflecting continued efforts to strengthen labour standards and align national frameworks with international commitments. Canada stated that the ratification of ILO Convention no. 155 (C155, Occupational Safety and Health Convention, 1981), the only ILO fundamental convention not yet ratified by Canada, remains a priority. Canada noted that federal-provincial-territorial governments have been working together on a technical review of their legislation to ensure compliance before taking additional steps towards ratification. In addition, the Parties confirmed their willingness to continue working together at the ILO on decent work, social justice and other relevant initiatives to promote and protect fundamental labour rights.

The Parties reaffirmed that tackling labour exploitation and forced labour linked to global value chains is a common key priority. In Canada, the Fighting Against Forced Labour and Child Labour in Supply Chains Act, which came into force on 1 January  2024, aims to increase industry awareness and encourage transparency reporting about forced labour and child labour issues in supply chains. Canada shared proposed plans to strengthen the forced labour import ban and shared high-level reporting collected from businesses on forced labour risks in supply chains.  The EU forced labour regulation will enter into force in December 2027.

The Parties committed to strengthen coordination on cooperation in third countries.

Trade and Gender, Corporate Social Responsibility (CSR) / Responsible Business Conduct (RBC), and Trade and Indigenous Peoples.

On Corporate Social Responsibility (CSR) / Responsible Business Conduct (RBC) Canada noted that in 2022, it launched its RBC strategy, Responsible Business Conduct Abroad: Canada’s Strategy for the Future. The EU presented the omnibus simplification package for the Corporate Sustainability Due Diligence Directive (CSDDD) and reaffirmed its strong interest to continue collaborating with other jurisdictions to align, where possible, corporate due diligence requirements.

On Trade and Gender and Trade and Indigenous Peoples, Canada welcomed the EU`s new Roadmap for Women’s Rights released just ahead of International Women’s Day. Canada also reaffirmed its commitment to collaborate with the WTO and OECD to further process on trade and gender-related issues. The Parties renewed their engagement under the CETA Trade and Gender Recommendation, confirming collaboration across all levels. Canada followed with an update on its initiatives related to Trade and Indigenous Peoples, highlighting its ongoing efforts to promote inclusive trade. This includes integrating provisions into free trade agreements that support the participation of Indigenous Peoples in international trade and investment, while upholding legal obligations through reservations and exceptions. Canada also underscored its active engagement in cooperative frameworks such as the Indigenous Peoples Economic and Trade Cooperation Arrangement (IPETCA), designed to expand global opportunities for Indigenous businesses and entrepreneurs.

Session with the co-chairs of the Domestic Advisory Groups

The Canadian and EU CETA DAGs took part in the concluding session of the TSD Committee meeting, where the Committee’s co-chairs recapped key discussions and shared ideas for potential areas of collaboration in the year ahead.

The DAG chairs presented their key priorities, which included strengthening the link between trade and climate, enhancing data accuracy, developing tools to assess the sustainability of international trade flows, mitigating adverse impacts on supply chains, prioritizing support for vulnerable groups, and advancing the TSD Early Review. They considered the seventh CSF a success, citing strong engagement from the DAGs and the relevance of the topics discussed. The importance of improving coordination and communication with the DAGs was emphasized.

The EU and Canada discussed the importance of strengthening representation of members on the EU DAG by enhancing participation from experts in environmental and climate change fields. The meeting concluded with both Parties reaffirming their shared commitment to continued collaboration, with an emphasis on achieving practical and impactful outcomes in the years ahead, particularly in response to the rapidly evolving global trade landscape. 

Participants

European Union

European Commission (EC) Directorate-General for Trade
EC Directorate-General for Environment
EC Directorate-General for Climate Action
EC Directorate-General for Employment, Social Affairs and Inclusion
EC Directorate-General for Justice
Delegation of the European Union to Canada 

Canada

Global Affairs Canada
Environment and Climate Change Canada
Employment and Social Development Canada
Mission of Canada to the European Union
Representatives from Provincial and Territorial Governments