Report: Comprehensive Economic and Trade Agreement (CETA) 7^th meeting of the Committee on Trade in Goods

October 15-16, 2025 (hybrid)

1. Adoption of the agenda and introductions

The European Union (EU) noted that the Comprehensive Economic and Trade Agreement (CETA) continues to be positive for both Canada and the EU. In 2024, bilateral trade in goods reached EUR 76 billion (over $123 billion CAD). This represents a 63% increase over the pre-CETA level of trade in 2016.

Strengthening trade relations and maximizing the potential of CETA, in line with the conclusions of the EU-Canada Summit in June 2025, continue to be shared objectives. With the current momentum, there is a significant opportunity to enhance the partnership and further increase trade. Efforts should be made to address and eliminate persisting issues to facilitate smoother trade relations.

The overarching purpose of the meeting was to realize the full potential of CETA and the importance of this committee’s work was highlighted in this regard.

2. Increasing trade in goods

2.1. Exchange of views on further promoting CETA (EU and Canada item)

The EU and Canada exchanged views on ongoing and planned activities to raise awareness of CETA and promote its use among businesses. Both sides noted the positive cooperation in the jointly organised Access2Markets training, which was held on 7 October 2025, focusing on EU-Canada trade.

The EU also noted upcoming promotional activities, including Market Access Days and a business event planned alongside the next CETA Joint Committee meeting. The EU recalled findings from its CETA ex-post evaluation highlighting the need for greater stakeholder awareness of CETA’s benefits. Canada explained that its awareness strategy focused on increasing CETA utilisation among existing and potential exporters and mobilising its trade network in Canada and Europe.

Both sides underlined the importance of continued cooperation in this area and agreed to explore further joint initiatives ahead of the 10th anniversary of CETA’s provisional application in 2027.

2.2. Canadian Select Luxury Items Tax (EU item)

The EU reiterated its opinion that the Luxury Items Tax disproportionally impacts EU car exports. EU industry continued raising this issue as a trade barrier. Canada was urged to amend the tax so that it does not disproportionally affect EU cars exports. The EU opined that a first step could be to exempt zero-emission vehicles from the scope of the luxury tax, to facilitate access to clean vehicle technologies and avoid compounding taxation at province level.

Canada reiterated that it disagrees with the EU assessment, explaining that the tax is a progressive tax aimed at those able to pay more and is not discriminatory, and noting the need for space to focus on tax and public policy goals. Canada commented that the luxury tax applies to all vehicles produced anywhere in the same way and does not target EU exports. Canada said it would pass along the EU request on the exemption on electric vehicles (EVs).

2.3. CETA cheese tariff rate quotas management (TRQs) (EU item)

The EU referred once more to its request for Canada to review the management system of the CETA cheese tariff rate quotas (TRQs). While the EU is satisfied with the overall fill rate of the CETA Cheese of All Types TRQ, they consider that alleged undisclosed transfer costs increase uncertainty for the operators and undermine the competitiveness of EU cheese on the Canadian market. The EU noted they have been calling for a review since 2019 with no progress, even though Canada has been focused on resolving TRQ management issues with other partners, most recently New Zealand. The EU therefore asked for a clear timeline for the CETA TRQ management review, in view of addressing, in particular, the repeat quota return penalties, advancing the deadline for returning and reallocating unused quota rights and improving transparency of quota transfers.

Canada confirmed the high fill rate of the CETA Cheese of All Types TRQ and explained that the comprehensive TRQ review has been replaced with a more case-by-case approach. Canada considers that quota transfers contribute to high fill rate, allowing flexibility for importers and result from quota design favouring SMEs. The use of quota towards year’s end is explained by purchases ahead of the holiday period. Canada added that although it is bound by business confidentiality constraints, it is looking to publish more detailed use data on an annual basis.

The EU reasserted the CETA provision establishing that the TRQ management system should result in “the quotas going to those persons that are most likely to use it”, which in its opinion was still not the case. The EU therefore asked Canada to consider introducing similar adjustments to CETA cheese TRQs as those granted to New Zealand in the framework of the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) dairy TRQs dispute, including improvement of the reallocation system, advancement of the return window and transparency. Canada replied that it would consider these issues moving forward.

Both sides agreed to continue exploring possible revisions at the CETA Agriculture Committee meeting scheduled for 3-4 December 2025.

2.4. Low-risk cosmetic-like products (EU item)

The EU initiated this discussion to address significant trade barriers faced by its cosmetics industry, which stem from Canada's classification of low-risk cosmetic-like products. Whereas the EU regulates these products as cosmetics, Canada treats them as non-prescription drugs or natural health products, triggering more stringent requirements. The EU's objective is to establish a more pragmatic and efficient trade environment by reducing these regulatory burdens.

Concerning sunscreens, the EU suggested a comparative analysis of the EU's list of 33 authorized UV filters for use in cosmetics against Canada's list of 21 authorized filters. The goal would be to identify overlaps and focus on developing an accelerated authorization procedure in Canada for EU-approved filters not yet on the Canadian list.

Canada's response was grounded in its existing domestic regulatory landscape and informed by its broader policy work concerning products at the "cosmetic-drug interface” within Health Canada. Health Canada recognizes the international differences in regulation for products like sunscreens, oral care, antiperspirants, and acne therapies. In response, Health Canada is actively working to revise its oversight to be more proportional to risk. This initiative aims to address "regulatory gaps and red tape" and better align Canadian requirements with international practices and standards.

While the discussion determined that an immediate expedited pathway for authorisation of UV filters via ministerial authority was unfeasible, the meeting concluded productively. Both parties agreed on a clear path forward focused on tangible information sharing and leveraging the formal review process established under the CETA Regulatory Cooperation Forum (RCF).

2.5. EU Deforestation Regulation (Canada Item)

Canada shares the EU’s goal of preventing deforestation globally and recognizes the scope and scale of what the EU is undertaking with the EU Deforestation Regulation (EUDR). Canada noted its concern that some of the compliance measures in the EUDR will result in barriers to trade for Canadian exports despite their low risk of causing deforestation. Canada inquired about the current state of play and expressed interest in a potential postponement of the entry into application of the EUDR.

The EU detailed that the Commission is considering a one-year postponement of the entry into application of the EUDR, to avoid uncertainty and operational difficulties for stakeholders in the EU and third countries, and to allow time to remedy the identified risks. This follows new analyses based on recent information on the expected number of operations and interactions between economic operators and the Information System, related to the way the operators would interact with the system, which have led to a substantial upward reassessment of the projected load of the Information System.

The EU also explained the content of the April 2025 EUDR simplification package, which consisted of updated Frequently Asked Questions and Guidance, and a draft delegated act on the product scope. This was followed by the adoption of the benchmarking implementing act, where Canada is classified as low risk, meaning operators sourcing commodities grown or harvested in Canada can enjoy simplified due diligence obligations.

Canada raised the issue of the letter that Global Affairs Canada, Agriculture and Agri-Food Canada, and Natural Resources Canada had sent to the Commission in May 2025, requesting several legal amendments to be introduced into EUDR. In the letter, Canada recommended adjustments to the list of products included in of Annex I of the EUDR, specifically the removal of hides and leathers, to simplify and reduce the administrative burden. Additionally, Canada requests simplified approaches to supply chain traceability, such as removing geolocation; allowing for regional sourcing information; a phased-in approach to the product scope; and exemption of imports with a value below a de minimis threshold exemption.

The EU took note of Canada’s concerns and expressed commitment to working closely with all stakeholders to ensure that EU rules reduce global deforestation and forest degradation in the least burdensome manner for companies. The EU emphasized the continued effort to provide implementation guidance within the framework of the current legislation, especially with the updated Frequently Asked Questions document as well as the latest Guidance document published earlier this year.

Canada enquired about the context of the recent Joint Statement between the United States and the European Union, and the agreement of the EU and Malaysia to strengthen their partnership and continue their joint efforts against deforestation. Canada asked about the nature of such agreements and the possible beneficial effect it could have for the US and Malaysia vis a vis other third countries. The EU emphasized that those statements do not grant preferential treatment under the EUDR, and the obligations prescribed therein. Canada said those statements could nonetheless de facto provide a competitive advantage to producers from those countries. Canada said it would expect equal treatment to the most beneficial arrangement offered to other countries with respect to the EUDR and raised the possibility of discussing a similar statement for Canada on EUDR. The EU acknowledged Canada’s concern and interest.

3. Reports from Committees and exchange on outstanding issues

3.1. Report of the Agriculture Committee meeting (Canada and EU item)

The EU and Canada referred to the issues discussed at the CETA Agriculture Committee meeting on 13 November 2024. The EU noted that it had raised the issue of the CETA cheese TRQ management, trade flows of milk protein concentrate between the EU and Canada, cheese compositional standards and Canada’s growing ethanol exports to the EU. The EU also outlined an opportunity for Canadian durum wheat, dried peas and flaxseed exports to the EU market. Canada had raised the topics of the EU Deforestation Regulation (EUDR), the EU’s proposed Regulation on the protection of animals during transport, the EU regulatory approach to pesticides and contaminants, the proposed Regulation on New Genomic Techniques as well as the EU Sustainability Labelling Framework. Canada had also sought information concerning unused or unallocated beef and pork TRQs as well as the negotiations of the Equivalency Agreement for the trade of organic products.

Both sides had also discussed progress in their respective international trade negotiations, updates on the Strategic Dialogue on the Future of EU Agriculture, CETA evaluation commissioned by the European Commission, their respective sustainability initiatives as well as distribution of portfolio responsibilities across new Commissioners-designate.

Canada commented that recent trade data reaffirmed the importance of agri-food trade in the bilateral trade relationship. Canada also referred to the June 2025 Leaders’ Statement which mandated for deepening of bilateral agri-food trade and resolution of trade barriers. The EU congratulated Canada on the successful organisation of the stakeholders’ trip to Alberta and Ontario in June 2025. Both sides expressed satisfaction with the ongoing Dialogue on Sustainable Agriculture and looked forward to its upcoming event on young farmers and generational renewal.

3.2. Report of the Wines and Spirits Committee meeting (Canada and EU item)

The EU noted that the Wines and Spirits Committee (the Committee) had met twice since the last Trade in Goods Committee, on 15-16 May 2024 and 18 March 2025. During its last meeting, on Canada’s request, both sides held a discussion about the impact of the weaponisation of the alcoholic beverages’ sector in the current geopolitical context and outlined measures taken in response to US tariff actions. Canada also agreed to explore the establishment of a group involving both officials and stakeholders to investigate concrete measures to improve bilateral trade. The parties discussed the entry into force of the amendments to the 2003 Agreement on Trade in Wines and Spirit Drinks and agreed on the way forward for subsequent amendments.

The EU noted other topics discussed during the Committee’s last meeting, among which the CETA ex-post evaluation initiated by the European Commission, progress on the removal of the term “champagne cider” from the Canadian Food Compositional Standards document, protection under Canada’s Trademarks Act, low and de-alcoholised wines, nutrition and ingredient labelling, the EU Wine Package and Europe’s Beating Cancer Plan. The parties discussed updates concerning simplified documentation for wine imports to the EU as well as labelling of wine varietals.

The Committee also held a discussion about certain mark-ups and taxes in Canadian provinces which the EU considers discriminatory. As part of this discussion, the EU expressed its concerns with the mark-ups and taxes in Ontario, Quebec, Alberta, British Columbia, Nova Scotia and New Brunswick. Canada provided explanations relative to the situation in each Province. The EU also raised the issues of differential access to certain market outlets, the ongoing work to liberalise inter-provincial trade, as well as other distribution and retail practices, including chargeback requests in Ontario. Canada provided pertinent updates.

The EU requested to take the opportunity of the Trade in Goods meeting to express its disappointment with the lack of progress on differential mark-ups and taxes, which it considers to be contrary to the provisions of CETA. The EU mentioned its direct exchanges with several Provinces, which did not yield concrete progress. The EU suggested that both sides work towards identifying possible avenues to achieving progress on concrete measures in time for the next Joint Progress report expected in 2027 and invited Canadian Provinces to show goodwill towards the EU. In this respect, the EU saw potential in the possibility to open access to new sales channels across Canada to imported products. The EU suggested that Canada outlines a concrete timeline to address concerns related to differential taxes and mark-ups, as well as access to sales channels for imported alcoholic beverages, in view of the Joint Committee meeting in 2026.

Canada noted the importance of taking the current geo-political context into account, as Provinces are seized with other priorities, noting that Provinces also consider the commercial impact of specific measures when determining potential next steps.

Canada added that Provinces remain open to discussing EU concerns, but the EU should moderate expectations for the pace of progress. As an example of instances where time is needed to address concerns, Canada mentioned the harmonization of payment terms in Ontario, where there is a clear will to move forward, but due to the nature of the ongoing changes, sufficient time is required for implementation. Canada also noted that several of the alleged discriminatory issues raised by the EU are the likely the result of a misunderstanding of how certain programs functions, despite Canada’s efforts to provide explanations on several occasions in recent years. To this end, Canada offered to continue to facilitate the conversation with Provinces to address the misunderstandings. Finally, Canada provided an update on the ongoing process to allow direct-to-consumer sales across the country.

The EU reiterated its interest in making progress on this matter, which it continues to consider a priority. It noted its disappointment in Canada’s position and indicated it will consider it in preparation of the upcoming Joint Committee in March 2026. The EU reminded the federal government of its responsibility to implement CETA. In response, Canada reaffirmed its commitment to facilitating discussions with Provinces and channel information as necessary. Canada further noted its disappointment with the continued characterization of certain matters as discriminatory, as well as the fact that some issues represent extremely low commercial values in a market where EU products are doing increasingly well in the current context.

3.3. Report of the Joint Sectoral Group on Pharmaceuticals (Canada and EU item)

The EU provided an update on the most recent meeting, held on 17 February 2025, at which the Parties had discussed the extension of the scope of the Pharmaceutical Protocol, the state of play of the recognition of EU national competent authorities by Health Canada, update of Administrative Arrangements and the revision of EU legislation.

3.3.1. Implementation of the CETA Protocol on the mutual recognition of the compliance and enforcement programme regarding good manufacturing practices for pharmaceutical products

The two jurisdictions continued to work collaboratively in identifying opportunities for reducing duplication of inspections and to discuss matters related to the operation of respective programmes. Regular meetings at the technical working level have ensured the maintenance of mutual recognition and the successful implementation of the Protocol.

3.3.2. Update on the process towards the amendment of the scope of the Protocol to include active pharmaceutical ingredients

The EU thanked Canada for the comments provided on the draft Joint Committee decision adding active pharmaceutical ingredients to the operational scope of the CETA GMP Protocol. The EU informed Canada that such comments are currently under review. The EU reassured that only minor issues remain to be resolved, which should allow the Parties to finalise the text of the decision soon. The EU also inquired whether Canada could complete its internal procedures to modify the Protocol before the next Joint Committee meeting envisaged for March 2026.

Canada reaffirmed its positive engagement on this matter and agreed that the amendment of the Protocol could be included in the deliverables of the next Joint Committee meeting, provided that both Parties complete their respective internal procedures in time. 

3.4. Report of the Intellectually Property Rights Dialogue (Canada and EU item)

The EU and Canada reported on discussions held within the remit of the 4^th IP Dialogue, held on 24 September 2025. Discussions had covered copyright, patents and pharmaceutical intellectual property rights, border enforcement, and trademarks. On copyright, Canada and the EU had discussed their respective frameworks on AI and copyright. Regarding patents and pharma IPR, Canada provided an update on its new MyCIPO modernisation procedure and answered a number of the EU’s questions about the Canadian patent linkage regime. The EU then presented the state of play and next steps in the deliberations on the EU Pharmaceutical Legislation. On border enforcement, the sides had focused on Canada’s procedures for responding to customs notifications and destruction of counterfeit goods. Finally, on trademarks, Canada had reported on its plan to reduce trademark processing times by 2026 and on its pilot project that challenges potentially inactive trademark registrations. Concerning next steps, Canada had agreed to update the EU on its online enforcement regime, while the EU had agreed to respond to Canada’s question on Bulgaria’s copyright system.

4. Work under the CETA Conformity Assessment Protocol (Canada and EU item)

4.1. Assessment of the implementation of the CETA Conformity Assessment Protocol

4.2. Future work under the CETA Conformity Assessment Protocol

4.2.1 Addition of pressure vessels, appliances burning gaseous fuels, and personal protective equipment

Points merged in the reporting

The EU reiterated that it was important to ensure a smooth functioning of the CETA Conformity Assessment Protocol so that it equally benefits both parties and that EU stakeholders still asked for more clarity on regulatory requirements in Canada, in particular at provincial level, which would reduce information and conformity assessment costs for EU business operating in Canada. The EU also reiterated the need for detailed guidance from Canada on the practical application of the CETA Protocol and the earlier suggested one-stop-shop at federal level in Canada to streamline the process for EU accreditation authorities and conformity assessment bodies, allowing them to interact with a single entity for information, recognition and certification rights across the entire Canadian market. The EU acknowledged the recent receipt of the Canadian follow up and would analyse it and come back to Canada. Once these concerns were addressed, the EU would be available to continue the exchange on a potential widening of the scope of the Protocol. Canada noted that at a time of heightened interest in increasing mutual trade diversification and removing barriers to trade, leveraging existing tools such as the protocol represented a relatively accessible opportunity. Canada reiterated its interest, first expressed in April 2023, in adding priority product categories from Annex 2 to Annex 1 of the protocol—specifically pressure equipment, appliances burning gaseous fuels, and personal protective equipment. It was emphasized that incorporating these categories into Annex 1 would demonstrate Canada and the EU’s ongoing commitment to fully utilizing CETA to promote bilateral trade. This addition could be an opportunity to raise awareness of the protocol among stakeholders, particularly EU conformity assessment bodies and exporters.

Regarding potential concerns about the complexity of Canada’s regulatory system, Canada indicated its willingness to continue working with the European Commission and EU accreditation bodies to clarify the Canadian system. It was noted that conformity assessment bodies worldwide had successfully completed the process of accreditation by the Standards Council of Canada (SCC) to test and certify to Canadian requirements, and Canada expressed confidence that EU conformity assessment bodies could do the same. Officials from Global Affairs Canada highlighted that they had offered to speak directly with any European Commission official or representative of an EU accreditation body or conformity assessment body with questions about Canada’s regulatory system, and that this offer remained open. Furthermore, Canada emphasized that the mutual recognition commitments applying to products under radio/telecommunication terminal equipment and electromagnetic compatibility had been successfully operationalized  under the previous EU-Canada mutual recognition agreement, then replaced by the CETA Protocol, with recognized conformity assessment bodies in both Canada and the EU. Canada also pointed out that the UK has been accredited for two product categories, and noted that adding more categories, such as AI, could boost interest in the protocol.

Both parties acknowledged this as a positive direction, agreeing to revitalize the conversation with renewed momentum.

5. Exchange on relevant recent legislative and non legislative developments:

5.1. Canadian steel measures and European Commission’s legislative proposal on steel (EU and Canada item)

Both sides exchanged technical information on measures taken and proposed to address the negative trade-related effects of global overcapacity and other distortionary measures on their respective steel markets.

Canada and the EU agreed on the importance of addressing these impacts and expressed willingness to cooperate with each other in this area. Both sides noted their respective measures included a recognition of their FTA partners, although neither could exclude them from measures given the size of trade flows, and expressed a desire to avoid having negative effects on each other’s arrangements. The EU and Canada also agreed that an exchange on Canada’s experience with melt-and-pour rules would be helpful.

Both sides agreed to hold a dedicated technical meeting with relevant experts to discuss these issues further.

5.2. Building Canada Strong policy (EU and Canada item)

The EU raised concerns about Canada's new government initiatives like "Buy Canadian" and their potential impact on CETA.

Canada indicated that these initiatives are still under discussion. The policy is part of targeted measures to respond to the significant and exceptional challenges affecting Canada’s economic resilience, particularly in areas where the country is uniquely exposed to fundamental risks.

Both parties agreed to continuing discussions on these matters.

5.3. Simplifications of the Carbon Border Adjustment Mechanism (CBAM) (EU and Canada item)

The EU presented the CBAM simplification and streamlining efforts formally adopted in October 2025. The CBAM Simplification package will reduce the administrative burden for companies without undermining the protection against carbon leakage for EU industry. In July the EU issued a communication providing options on how to address the problem of carbon leakage for CBAM goods exported to third countries.  A legislative proposal on preventing export carbon leakage is planned for the end of 2025. By the end of the year, the Commission will conduct a comprehensive review of the CBAM’s transitional period, accompanied by an anti-circumvention strategy and a legislative proposal extending the scope of the CBAM to certain steel and aluminium-intensive downstream products. 

The Commission is further working on various implementing and delegated acts to be adopted, including the final methodology for monitoring and reporting embedded emissions for CBAM goods, and the rules for the calculation of the CBAM adjustment taking into account free allocation under the EU ETS. The rules for the deduction of a carbon price effectively paid in the country of origin will be adopted early next year.   The financial adjustments for 2026 shall be paid only in 2027. Canada’s exposure to CBAM is quite limited, except for the iron and steel sector and is an observer in the CBAM expert group.

Canada stated that its concerns regarding burdensome reporting obligations and possible impact on trade flows. Canada asked for an update on discussions on a possible linking of the EU and UK ETS.

Canada explained that no formal action was taken on a possible “Canadian CBAM”. The government has initiated a review of Canada’s industrial carbon price.

5.4. Artificial Intelligence (EU and Canada Item)

5.4.1. Exchanges on regulatory developments including the EU Artificial Intelligence Act and Canada’s Artificial Intelligence and Data Act

5.4.2. Future work on conformity assessment of AI enabled products

Points merged in the reporting

Canada considered collaboration with the EU on standardisation as strategically important, key also for market access, to mitigate administrative/financial burdens especially for SMEs. In this vein Canada urged the EU to use international standards to implement the AI Act.

For the EU, standards are the core of the AI Act. EU explained the role of CEN/CENELEC (to the work of which Canada contributes) and ensured that in the AI standardisation process the international standards are always being mapped as a first and necessary step. At the same time, the AI Act puts safety and achieving policy objectives first, therefore the existing international standards are not always fit for purpose, for example for AI high risk systems. Both agreed to further cooperate on this issue and continue technical discussions as the process progresses.

Canada is interested in Canadian companies participating in the regulatory sandboxes which would allow them non-discriminatory access to the EU market. Canada believed this would be key for global innovation and would support the global AI SMEs ecosystem. The EU explained that there would be additional guidelines issued at the EU level but that it was Member States responsibility to establish the sandboxes. Both agreed to continue this discussion more in details at the technical level

Both sides agreed also to continue discussing potential mutual recognition of conformity assessments” – which applies both to cyber and AI.

5.5. Cybersecurity (EU and Canada Item)

5.5.1. Exchanges on regulatory developments including EU Cyber Resilience Act and European Cybersecurity Certification Scheme on Common Criteria (EUCC) and relevant Canadian regulations and ongoing legislative proposals

On the EU Cyber Resilience Act (Regulation (EU) 2024/2847 - CRA), Canada reiterated its interest to discuss with the EU mutual recognition of cybersecurity of products with digital elements. Canada considered that expanding the CETA protocol for mutual recognition to cover cybersecurity would be the most effective path towards that objective. To that effect, Canada would be pleased to participate in future workshops with the Commission to provide a better understanding of the CETA protocol and how Canadian bodies could be accredited to perform conformity assessments under the CRA. Canada also sought an update on the timeline for the development of EU standards and recalled previous concerns communicated on the WTO TBT notification for the CRA regarding the need for clarity regarding categories of important and critical products with digital elements.

As a member of the Common Criteria Recognition Arrangement (CCRA), Canada was also interested in the EU’s next steps to ensure smooth coexistence with the CCRA over the long term and a potential timeline towards mutual recognition under the European Cybersecurity Scheme on Common Criteria (EUCC). 

Canada also provided an update on relevant Canadian regulations and ongoing legislative developments, including regarding incident reporting and the resilience of critical infrastructure, where it would welcome exchanges with the EU regarding its experience with the development and implementation of the NIS2 Directive. Canada also referred to its activities in relation to international developments, including discussions with 5-eyes partners, G7 and G20, and NATO.

The EU provided an update on the state of play of Implementing Regulation 2024/482 for the adoption of the European Common Criteria-based cybersecurity certification scheme (EUCC) that started to apply on 27 February 2025. The EU reported on the ongoing work for the establishment of a stakeholder policy to establish a liaison with stakeholder groups such as the CCRA. The EU also reported on the short-term arrangement of March 2025 of the CCRA Management Committee for the co-existence between the CCRA and EUCC, however noting that no timeline is established for potential future MRAs under the EUCC.

The EU provided an update on the implementation of the CRA, which will start to apply fully on 11 December 2027. In particular, the EU explained the ongoing work in relation to implementing regulations that would provide for detailed technical descriptions of important and critical products to support legal clarity for manufacturers and facilitate the implementation of the Regulation. The EU also referred to the ongoing work on guidance addressing various aspects of the CRA, as well as ongoing standardisation activities by European Standardisation Organisations.

In terms of next steps, the EU confirmed its commitment to exploring with Canada how potential mutual recognition could be achieved. The EU acknowledged the technical exchanges that had already taken place in the framework of the EU-Canada Digital Dialogue and was looking forward to continuing working together with Canada at technical level on these topics. The EU was still reflecting on next steps for mutual recognition in relation to EUCC but was open to discuss matters in the context of future technical exchanges with Canada.

6. Rules of Origin (Canada Item)

6.1. CETA technical rectifications to the rules of origin

The EU welcomed Canada's proposal to update the product-specific rules of origin to align them with the latest version of the Harmonized System in the near future, suggesting to continuing discussions on this under the CETA Joint Customs Cooperation Committee. Canada signalled its preference for this work to take place under the Committee on Trade in Goods, noting the linkages to initiatives to promote the free flow of goods between the Parties.

6.2. Cross-cumulation

The EU would be ready to explore sector-specific potential opportunities related to paragraphs 8 and 9 of Article 3 of the Protocol on Rules of Origin and Origin Procedures, based on concrete proposals from Canada. Canada noted its preferred approach was to have a broader application of the provision but confirmed that it had not received requests from Canadian industry to operationalize the provision.