Joint report: Meeting of the 8^th CETA Bilateral Dialogue on Forest Products

October 21, 2025 (by videoconference)

Opening remarks

The European Commission welcomed Canadian colleagues to the 2025 Comprehensive Economic and Trade Agreement (CETA) meeting, marking the 8th Bilateral Dialogue on Forest Products (BDFP). The focus was on shared trade, innovative forest industries, and the impact of current geopolitical situations. The European Commission emphasized goals like competitiveness, simplification, and decarbonization. Cooperation was stressed to enhance standardization, trust, factual alignment, and ensure open, fair trade, with science-based considerations. The European Commission thanked Canadian colleagues for their commitment.

Canada reaffirmed its commitment to strengthening trade ties with the European Union (EU) and the value of the BDFP as a strong platform for information exchange and dialogue in support of these trade relationships. Canada raised concerns about the potential impact of the EU Regulation on deforestation-free products on Canadian exporters’ ability to access the EU market, while welcoming the European Commission’s constructive engagement and flexibility in communication. Canada also underscored the importance of global cooperation to prevent, fight and recover from wildfires.

State of play on the European Renewable Energy Directive

The European Commission provided an overview on the latest updates related to the Renewable Energy Directive (RED). Member States (MS) have communicated national measures for the transposition of the amended REDII, which the Commission is currently assessing. In addition, the Commission informed that new voluntary schemes have been recognised as technically compliant with the RED for Renewable Fuels of Non-Biological Origin (RFNBOs) and Renewable Chemical Feedstocks (RCFs), as well as two schemes for forest biomass. The Commission also mentioned the adoption of Delegated Directive (EU) 2024/1405 amending Annex IX of RED, which extends the list of materials used to produce advanced biofuels and was expected to be transposed by MS in September 2025. Additionally, a draft Delegated Directive introducing amendments to Annexes V and VI, related to emissions for biofuels, bioliquids and biomass fuels, will be published soon for public feedback. Furthermore, the Commission informed about a future amendment of the implementing Regulation (EU) 2022/996 on rules to verify sustainability and greenhouse gas emissions saving criteria, which will aim to strengthen the relevant provisions on certification and traceability. As context for this session, Canada recognized the cornerstone role that RED plays in contributing to the EU’s environmental objectives and sought clarification and updates on application and implementation of RED III.

State of play on the EU Regulation on deforestation-free products (EUDR)

The European Commission reported that a package of simplification measures had been announced in April, including updates to guidance and frequently asked questions that had considered questions and feedback from various counterparts and stakeholders. This updating is a process that will continue. The European Commission reported that targeted measures for the smooth implementation of the EUDR had just been proposed. The changes aim to ensure that the IT system is given time to become fully operational and to simplify reporting obligations on operators and traders that commercialise EUDR products as well as micro and small primary operators from low-risk countries worldwide, while maintaining robust tracking mechanisms. The Commission noted that changes in legislation will introduce certain transition periods for companies to ensure a smooth transition and strengthen the IT system.

Canada raised a concern with the new proposal regarding the possibility of unequal treatment between EU-based small and micro enterprises (SMEs) and Canadian SMEs and stressed the importance of ensuring equal treatment of Canadian and European SMEs. Separate from the new proposal, Canada expressed concerns about the complexity of current EUDR requirements for transformed forest products, stating that industry stakeholders were struggling to understand and meet the requirements. Canada reported that Canadian exporters had received requests for excessive amounts of legality information, primarily from third-party intermediaries, and requests for detailed information on Canadian legislation that may not be strictly necessary to meet the obligations of the EUDR. Canada also raised a question regarding treatment of salvaged logs in EUDR. The European Commission noted that Canada’s feedback on practical matters is invaluable and will be considered for future updates of guidance and frequently asked questions. Finally, Canada reiterated previous asks for simplification of EUDR and a phased approach to implementation. 

State of play on the European Union Bioeconomy Strategy

The European Commission delivered an outline of the upcoming the Bioeconomy Strategy revision. This strategy will aim to promote innovation and circularity, to support European companies in scaling, and to create a lead market for biobased solutions. This strategy for will be aligned with  the Competitiveness Compass, the Clean Industrial Deal, and the Vision for Agriculture and Food. The European Commission is also broadening its focus to develop a global bioeconomy market strategy. Canada agreed with the EU that the bioeconomy strategy can foster a circular economy without harming nature and promote clean product innovation and market development.

National Forest Monitoring and Reporting and Assessment of Forest Degradation in Canada

Canada presented its national approach to forest monitoring, reporting, and assessing forest degradation. Canada noted the complexity involved in assessing forest degradation, particularly in defining primary forests and forest degradation. Canada underscored its commitment to work with like-minded partners including Montreal Process member countries and the FAO to advance an internationally agreed upon definition of forest degradation while continuing its work on identifying forest degradation considerations and indicators that reflect Canada’s unique circumstances and align with international processes.

The European Commission appreciated Canada's thorough presentation, and the practical details provided on sustainable forest management and the assessment of forest degradation. The European Commission expressed continued interest in learning from Canada’s examples.

EU information point on the Construction Product Regulation (CPR) and developments on standardisation work for timber construction

The European Commission presented how CPR provides tools to harmonize the construction product market, aiming to deliver a more efficient and competitive sector. European Commission explained that CPR introduces a common language based on renewed product standards facilitated by the Digital Product Passport (DPP).  The idea is that the EU Member States cannot impose stricter standards than those stated in the CPR. Environmental information flow is simplified by integrating data from the Environmental Product Declaration (EPD) to the Declaration of Performance (DoPC) and finally to the DPP. According to European Commission DPP structure need to be compatible with Building Information Modelling (BIM). The Commission is drafting a new standardisation request dealing with structural timber products and wood-based panels. The preparatory work shows a great interest from stakeholders and regulators to develop standards for product families not covered or partially covered by current European standards, including different types of engineered structural timber, including different types of engineered structural timber. Canada thanked the EU for the presentation, and discussions ensued on how information is collected outside the EU, given that value chains can extend beyond its borders. The EU explained that information requirements are handled through ISO standards. The level of detail was also discussed, noting that it is high and includes technical performance of the product but varies depending on the product. The EU clarified that manufacturers provide the information but are not responsible for calculations, which are the contractor's duty.

Regulation of Wood Construction and Standardization of Timber Products in Canada

Canada presented the evolution of wood construction including mass timber construction through its history and the development of codes and standards for mid-rise wood frame buildings. Canada also outlined the regulation framework for wood construction in Canada, including wood construction product standards. In response to a request from the European Commission, Canada explained that wood-based innovation was significantly advanced in 2015 when six-story buildings were added to the building code, with provinces playing a major role in this development. Canada also noted that the standardization of the certification process now facilitates innovation and performance-based solutions.

Any other business and final remarks

Both parties thanked the presenters and participants for a very productive discussion. The European Commission signalled a strong interest in Canada’s affordable housing policy, as the European Commission will be proposing later this year a new affordable housing strategy to tackle the housing crisis in Europe. Canada assented to contribute their related experience and knowledge. Canada also requested to consider the next year’s calendar of the CETA bilateral meetings