Driving shared prosperity: Boosting EU–Canada trade through CETA

Today, the European Commissioner for Trade and Economic Security Maroš Šefčovič and the Canadian Minister for International Trade, the Honorable Maninder Sidhu, co-chaired the fifth meeting of the Joint Committee of the European Union (EU)-Canada Comprehensive Economic and Trade Agreement (CETA). Commissioner Šefčovič and Minister Sidhu also formally launched the negotiations on an EU-Canada Digital Trade Agreement.

At the Joint Committee meeting, the co-chairs emphasised the vital importance of further strengthening EU-Canada economic relations. They reiterated the firm conviction expressed at the June 2025 EU-Canada summit that by enhancing the EU-Canada trade and investment relationship, both sides will advance trade diversification, create investment opportunities and ultimately, strengthen shared long-term prosperity, economic security and resilience.

Nearly nine years into CETA's provisional application, persistent bilateral trade growth underscores the strength of our partnership, and the significance of this agreement in supporting rules-based trade. Since provisional application started in 2017, two-way trade in goods has surged by over 75%, and bilateral trade in services has grown by 97%. CETA has bolstered cooperation, driven innovation, enhanced competitiveness, generated jobs, and strengthened the resilience of our shared supply chains, as shown by the EU's recent ex-post evaluation of CETA. That evaluation also highlighted that CETA has a significant positive effect on small and medium-sized enterprises on both sides.

Commissioner Šefčovič and Minister Sidhu reviewed the progress across the CETA Specialised Committees and Dialogues, welcoming, particularly, the positive results achieved in delivering on the ambitious trade and economic cooperation agenda set out in the 'New EU-Canada Strategic Partnership of the Future' agreed at last year's summit.

Building on past success, the co-chairs agreed on a series of forward-looking actions.

First, the Joint Committee adopted the CETA 'Interpretation on Investment', to clarify elements of investment provisions under CETA, notably "fair and equitable treatment", "indirect expropriation", and "investment and climate change," and ensuring the Parties can regulate to achieve legitimate policy objectives such as in the framework of climate, energy, and health policies.

Second, Commissioner Šefčovič and Minister Sidhu signed the Decision of the Joint Committee on adopting expedited arbitration procedures to improve access to investment dispute resolution for small and medium-sized enterprises (SMEs).

Third, the co-chairs welcomed the conclusion of technical work to extend the operational scope of the CETA protocol on the mutual recognition of the compliance and enforcement programme regarding good manufacturing practices for pharmaceutical products (the 'GMP Protocol'). Commissioner Šefčovič and Minister Sidhu agreed to proceed quickly and adopt the decision to amend the GMP Protocol to include active pharmaceutical ingredients (APIs) via written procedure, following internal approval processes on both sides. This will allow the mutual recognition of inspections and acceptance of official documents for APIs and thus reduce costs resulting from duplicative inspections. This change is expected to particularly benefit micro, small, and medium-sized enterprises, and to contribute to greater pharmaceutical supply chain resilience.

Fourth, the co-chairs welcomed the work of the Committee on the Mutual Recognition of Professional Qualifications, and the entry into application of the Mutual Recognition Agreement for Architects (MRAA) on 18 December 2025. The MRAA makes it easier for licensed architects to work across borders via aligned qualification standards. The MRAA is a first-of-its-kind agreement for the EU and Canada, reflecting the mutual trust of both partners in each other's standards. Determined to further build on this trust, Commissioner Šefčovič and Minister Sidhu agreed to explore ways to encourage further collaboration amongst relevant professional services regulators in the EU and Canada.

Fifth, the co-chairs acknowledged the effort of the CETA Committee on Agriculture and the CETA Joint Management Committee for Sanitary and Phytosanitary (SPS) Measures, which have been actively engaged in reducing barriers to strengthen agriculture and agri-food trade. They welcomed the continuation of the work of these Committees and the convening of a Senior Officials' meeting to address priority concerns in the agri-food sector, including on SPS issues, and underlined their continued commitment to advancing solutions under CETA. The Senior Officials' meeting will inform and report on its outcomes to the next meeting of the CETA Joint Committee.

Sixth, the co-chairs also agreed to redouble their efforts to identify opportunities for enhanced regulatory alignment between the EU and Canada. They welcomed and encouraged the intensified collaboration of both sides in the Regulatory Cooperation Forum, agreed to reinvigorate the dedicated CETA bilateral Motor Vehicles Dialogue, and highlighted the opportunities for closer cooperation under the CETA Protocol on the Mutual Acceptance of the Results of Conformity Assessment.

The Joint Committee underlined that to utilise CETA's full potential, continued efforts are needed to resolve or minimise remaining trade impediments and prevent the emergence of new ones. Commissioner Šefčovič and Minister Sidhu recognised the current disruptions in the global trading system and agreed to work closely together in addressing them.

Looking ahead, the co-chairs took note of ongoing progress towards ratification of CETA by all 27 EU Member States. Commissioner Šefčovič and Minister Sidhu also discussed key priorities in economic and trade cooperation for the years to come, including with respect to digital transformation, critical raw materials, energy, forestry, defence procurement, clean technology, and sustainable development.

In this context, Commissioner Šefčovič and Minister Sidhu formally launched the negotiations on an EU-Canada Digital Trade Agreement (DTA). Once completed, the DTA will complement CETA, adding a new dimension to the bilateral framework governing EU-Canada trade and ensuring it remains fit for the digital era. The DTA will establish a comprehensive, forward-looking framework for digital trade that enhances legal certainty for businesses, strengthens consumer protection in digital transactions, and promotes an open, free, and fair online environment. This step underscores our shared commitment to advancing an aligned, high-standard digital trade framework that supports innovation, competitiveness, and trust across our economies.

To complement the launch of negotiations towards a DTA, Minister Sidhu and Commissioner Šefčovič hosted a business roundtable on the DTA on the margins of the Joint Committee meeting. This roundtable provided an opportunity to hear directly from those stakeholders, helping to ensure that the negotiated agreement incorporates also the views of EU and Canadian industry.

Finally, Commissioner Šefčovič and Minister Sidhu reiterated their shared commitment to working together to address a range of global challenges, including upholding rules-based trade and advancing an ambitious programme of WTO reform at, and beyond, the 14^th Ministerial Conference. They welcomed the increased cooperation between the EU and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) Parties, which together make up a significant portion of global GDP and trade, underscoring the importance of collaboration in advancing shared objectives, such as trade diversification, digital trade, and supply chain resilience. They discussed further areas for future cooperation between the EU and the CPTPP. They furthermore welcomed the signature of the agreement on Canada's participation in the EU's Security Action for Europe (SAFE) on 14 February 2026 and stressed their determination to advance cooperation through the EU-Canada Economic Security Dialogue.