EU-Canada AEO Mutual Recognition Agreement Enters into Force, Boosting Trade Security and Efficiency Amid Global Uncertainty

This decision, adopted by the EU-Canada Joint Customs Cooperation Committee (JCCC), enables mutual recognition of the EU's AEO programme and Canada's Partners in Protection (PIP) initiative, streamlining customs procedures while enhancing end-to-end supply chain security for compliant businesses on both sides of the Atlantic.

Key Benefits for Traders

1. Possible Reduced Inspections and Faster Clearance: EU AEOs and Canadian PIP members can benefit from prioritised treatment at borders, with customs authorities favourably considering their status in risk assessments. This can result in fewer inspections and expedited processing of shipments, saving time and costs during a period of heightened trade volatility.
2. Simplified Compliance: The MRA aims to eliminate redundant security checks for authorised operators, as their business partners' AEO/PIP status is taken into account when the customs authority decides on the level of checks deemed necessary.
3. Seamless Data Exchange: Automated daily data sharing between EU and Canadian customs authorities ensures up-to-date information on AEO/PIP status, including authorisations, suspensions, or revocations, safeguarding supply chain integrity.
4. Business continuity mechanism: The MRA also foresees a business continuity mechanism to allow for accelerated customs clearances once trade resumes post disruptions, such as security alerts, borders closures or natural disasters.
5. Enhanced Global Credibility: Authorisation under either programme reinforces traders' reputations as secure and reliable partners, boosting marketability and overall brand equity.

Securing and facilitating EU-Canada trade

The MRA aligns with the World Customs Organization's (WCO) SAFE Framework and complements the Comprehensive Economic and Trade Agreement (CETA), strengthening transatlantic trade resilience amid geopolitical and economic uncertainties. By reducing administrative burdens and fostering trust, the agreement supports businesses in navigating complex global logistics while upholding high security standards.

Next Steps

Customs authorities in both regions will continue promoting awareness of the MRA through FAQs, guidance documents, and collaboration with industry stakeholders. Traders are encouraged to update their documentation to reflect AEO/PIP status and leverage the benefits of this agreement.

Further information

• AEO (Authorised Economic Operator)
• Mutual Recognition