Meeting of the EBO Worldwide Network
EUCCAN participated in the annual meeting of the EBOWN in Brussels the week of June 3rd. The network has seen substantial growth in membership over the past year increasing from 49 EBOs to 54, enriching the network and strengthening the collective voice on key issues.
Regional coordination is facilitated in: Africa, ASEAN, Americas and Caribbean, East Asia and Pacific, South Asia and Middle East, Europe and Eastern Partners. *EBOWN stands as the only organisation that represents European business interests in markets outside the European Union, serving European multinationals, as well as micro, small, medium, and large companies.
Delegates met with DG Grow, DG INTPA, DG ENVI, DG Energy, DG TAXUD, and the European Investment Bank, including briefings with Michael Hager Head of Cabinet Executive Vice President Dombrovskis, Denis Redonnet Deputy Director General & CTEO DG Trade, and Tomas Baert Trade Adviser Cabinet of European Commission President Ursula von der Leyen.
EU Corporate Sustainability Due Diligence Directive (EUCS3D)
EBOWN released a comprehensive position paper outlining its stance on the European Union’s Corporate Sustainability Due Diligence Directive (EUCS3D).
The directive, which aims to regulate environmental, social, and governance (ESG) practices across global value chains, has garnered significant attention since its formal adoption by the Council of the EU in May 2024. EBOWN emphasizes the importance of clear communication, robust support mechanisms, and consistent implementation to ensure the directive’s success.
It provides a total of 18 recommendations to address potential challenges and enhance the directive’s effectiveness.
Trade Takeaways from the EU Elections
In June 2024, EU citizens participated in the world’s second-largest democratic exercise, electing 720 Members of the European Parliament, the only directly-elected transnational parliament globally. The four-day election resulted in a rightward shift, with increased representation for eurosceptic nationalists and decreased seats for mainstream liberals and Greens. This shift is expected to impact key policy areas in the upcoming five-year term, including defense, climate, and trade among others. On trade, the European Parliament plays a crucial role in approving free trade agreements, and the new composition may complicate efforts to ratify pending agreements with partners like Mexico, Mercosur, and Australia. The European Commission and some EU leaders argue for more trade agreements to offset lost business with Russia and reduce dependence on China, but the increased presence of nationalist eurosceptics could make pushing these deals through parliament more challenging.
Canada Joins Horizon Europe
Canada is joining the European family of research and innovation, becoming part of Horizon Europe. With a budget of €93.5 billion for 2021-27, Horizon Europe is the world’s largest R&I programme. Canadian researchers and organisations have the opportunity to participate in the programme on equal terms with their EU counterparts.
Trade Policy Review: Canada
The WTO conducted its twelfth Trade Policy Review of Canada in June 2024. Overall, the review highlights that Canada’s trade regime remained open and transparent despite global challenges like the COVID-19 pandemic, supply chain disruptions, and geopolitical risks. Delegations commended Canada for its economic resilience and swift recovery from the pandemic-induced recession. Canada was praised for pursuing an inclusive and “feminist” trade policy, aiming to ensure trade benefits are widely shared among traditionally under-represented groups. Some concerns were expressed about Canada’s supply management system. Canada’s commitment to aligning trade and environmental sustainability goals was welcomed, though some delegations noted the importance of ensuring any future carbon border adjustment mechanism would comply with WTO rules. Canada’s active participation in the WTO and support for the rules-based multilateral trading system is highlighted.
EUCCAN Engagements
EU-Canada Trade Perspectives from Policy Practitioners – Carleton University
In May, EUCCAN participated in a roundtable on Canada-EU Relations focused on “Trade Perspectives from Policy Practitioners” with Achim Hurrelmann, Carleton University, Isabelle Poupart, Director General, European Affairs, Global Affairs Canada, Christian Burgsmüller, Deputy Head, European Union Delegation to Canada and Dylan Robertson, International Affairs Reporter, The Canadian Press. The event was hosted by the Carleton University in Ottawa.
Panelists shared their views on the EU-Canada relationship as strategically important for both parties, offering opportunities for trade diversification, economic growth, and cooperation on global issues. While the “steadily, deepening” partnership between Canada and the EU strong, there remain opportunities to fully implement the CETA agreement and take the relationship forward. Overall, Canada-EU economic relations are excellent; it is time to make them more forward-looking.
Critical Minerals Roundtable
Early in June, Canada hosted a dozen foreign delegations to discuss global issues related to critical metals and minerals, such as the resilience of supply chains, public support for industry, the importance of R&D throughout the value chain and international standards. Natural Resources Canada (NRCan) highlighted the opportunity that Canada represents for global supply chains, with the presence of many critical minerals in the Canadian subsoil: the government wants to involve Crown companies and the private sector in the financing of mining projects, including with innovative tools aimed at reducing risk such as contracts for difference, price guarantees and the inclusion of the mining sector in sustainable finance.
Upcoming Events
July 29 (online): Exploring Canada’s appeal: a deep dive into people mobility and immigration. This event will be held virtualy in collaboration with Fragomen and the French Chamber of Commerce in Canada. Registration details coming soon.
Economic and Trade Report from the Office of the Chief Economist
Global Affairs Canada released its economic and trade report (Q4 2023). In 2023’s last quarter the global economy grew by 2.6%, led by China, the U.S. and emerging markets. Canada’s GDP expanded faster than most of its peers and avoided a much-feared recession. After falling four consecutive quarters, world merchandise trade volumes grew in Q4.
Thinking of Investing in Canada?
The 2023 FDI Report is here. Despite a global decline, Canada experienced a steady year of FDI growth. A total of $62.3 billion in investments were announced, and the country had a record year for sustainable investments.
In 2023, Canada once again generated a year-over-year increase in foreign direct investment (FDI), solidifying Canada’s position as a premier destination for global investment. The year saw record-high numbers of sustainable projects, advancing Canada’s green transition while drawing on Canadian clean energy expertise. Investors chose Canada in 2023 for many reasons: rich natural resources, clean energy grid, abundance of skilled talent, innovation ecosystem, global market access and strategic location. Canada continues to build on its strengths to attract large, transformative FDI projects that are stimulating economic growth, creating jobs and benefiting communities across the country. The Invest in Canada FDI Report 2023 shares the year’s FDI facts, figures, insights and key projects.
Other News
New Cooperation Agreement Announced
The Canadian Hydrogen Association is pleased to announce that we have signed a Memorandum of Understanding (MoU) with H2Europe to accelerate hydrogen deployment and facilitate trade in clean molecules. This agreement was announced at the recent CETA Regulatory Cooperation Forum focused on the hydrogen with industry participants from Canada and the EU! This partnership marks a significant step towards a greener future.
Canada Announces 30-Day Consultation on Measures to Address China’s Trade Practices Related to Electric Vehicles
On July 2, 2024, Canada initiated a 30-day consultation period on potential policy responses to China’s rapid rise as the world’s largest manufacturer of electric vehicles (EVs). Canada alleges that unfair trade practices in the Chinese EV industry directly and indirectly threaten electric vehicles in Canada. The announcement notes that a policy response is necessary to prevent a diversion of Chinese EVs to Canada resulting from actions by the U.S. and the EU to impose tariffs on Chinese EVs.
Competition Bureau to Speed Development of Guidance on New Greenwashing Rules
The Competition Bureau says it will speed the development of guidance on the interpretation of new provisions in the Competition Act aimed at greenwashing. The federal watchdog says it has received a large number of requests and that it will develop guidance “on an accelerated basis”. The amendments to the Competition Act that became law last month require companies to be able to substantiate environmental claims made to promote a product or business interest.
Did you know?
Canada’s steadily deepening relationship with the EU is the oldest formal relationship the EU has with any industrialized country, dating back to 1959.
