Joint report: Meeting of the 9th CETA Bilateral Dialogue on Forest Products
June 4, 2026 (by videoconference)
Opening remarks
Canada welcomed the European Commission delegation to the 2026 Comprehensive Economic and Trade Agreement (CETA) Bilateral Dialogue on Forest Products (BDFP) meeting, marking the 9th such meeting between the parties. Canada noted the significant pressures currently facing the forest sector, including rising costs, stable access to cost-competitive fibre, and wildfire. Canada also highlighted the importance of the Canada-EU relationship, and the need for continued international cooperation and equitable trade in positioning the economies of Canada and Europe to face new challenges and opportunities. The European Commission expressed appreciation for continued collaboration between Canada and the EU on the BDFP, noting that forest products remain a cornerstone of the Canada-EU relationship. The Commission also referenced the increase in Canada-EU trade in forest products since CETA took effect. The Commission also noted the convergence on points of interest, and the value of dialogue on topics such as housing that are important to both parties.
EU Regulation on Deforestation-Free Products (EUDR)
The European Commission presented an overview of the most recent developments on the EUDR and the simplification review published in May 2026. Canada and the EU discussed the application of simplifications for micro and small primary operators as relates to geolocation requirements, and Canada noted that in their view, the simplifications appear more available to operators in EU member states than in third countries, leading to Canada’s concerns related to unequal treatment. Canada also noted that a chief concern for forest products exports from Canada lies in downstream operator simplifications, such as paper when manufactured in the EU as opposed to manufactured in Canada and exported to the EU. The European Commission disagreed with the characterization of unequal treatment but acknowledged that the EUDR establishes new rules which may require overcoming of challenges, including challenges linked to traceability.
Finally, Canada reiterated previous requests for a negligible risk category for countries with a low rate of deforestation and strong forest governance, and for exclusion of products made from forest manufacturing residuals from the scope of the regulation.
European Digital Product Passport
The European Commission presented on the Digital Product Passport (DPP) and the Ecodesign for Sustainable Products Regulation (ESPR). A delegated act for construction products will be published in 2027 under the Construction Products Regulation (CPR) and will become mandatory in 2028. Canada expressed interest in further detail on requirements for the DPP, as well as on the availability of user guidance for the updated CPR. It is understood that documentation may become available on construction products in Fall 2026.
Scaling housing: Modern methods of construction and Build Canada Homes
Canada provided an overview of Build Canada Homes, modern methods of construction, and the housing sector in Canada. Canada emphasized that affordability and construction modernization are high priorities for the Government and noted ongoing efforts to simplify the regulatory environment, invest in research and development, and scale modern methods of construction. The European Commission expressed interest in Canada’s procurement efforts through Build Canada Homes and broader work to mobilize demand across the country.
European Affordable Housing Plan and European Strategy for Housing Construction
The European Commission provided an overview of the European Affordable Housing Plan, Affordable Housing Package, and Strategy for Housing Construction, and spoke to four pillars of the plan: boosting housing supply, mobilising investment, enabling immediate support while driving reforms, and protecting the most affected. The European Commission also outlined efforts to simplify and digitise the construction ecosystem and support construction investment under the Strategy. Canada expressed interest in the European Commission’s multilevel engagement on underused and vacant homes.
Regulatory framework for modular construction in Canada: Evolving building codes and standards
Canada outlined existing and new Canadian standards for modular construction, proposed changes to the National Building Code, and associated timelines. Canada expressed that advancement of modern methods of construction including modern wood construction is a key goal. Canada also noted key challenges in adoption of modern methods of construction in Canada, including a lack of familiarity with those methods and gaps in standards. The European Commission expressed interest in Canada’s intergovernmental approach on harmonization and adoption of the National Building Code.
Eurocodes for timber development (CEN/TC/250/SC.5)
The Chair of the Subcommittee for Structural Eurocode 5 (CEN/TC/250/SC.5) gave an overview of the system of structural standards in Europe and outlined recent changes to EN 1995. The Chair noted efforts to incorporate national annexes into the main Eurocode where possible and advised that further amendments and annexes would be forthcoming. Canada expressed interest in how Europe determines safety factors and durability requirements.
Any other business and final remarks
Both delegations thanked participants for their contributions and productive discussion and expressed confidence in CETA and the Canada-Europe trade relationship. The European Commission noted strong similarities in the challenges facing Europe and Canada’s forest sectors. Canada noted the shared interest between Canada and Europe in sustainable forest management and wood construction. Parties agreed to hold the next BDFP meeting in 2027.
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