FAIT Committee Report

Recommendation 1:

That the Government of Canada significantly elevate Europe’s status in its global trade and investment list of priority regions. A concerted and effective initiative to augment our trade and investment with the countries comprising Europe and to deal more effectively with existing bilateral trade barriers and irritants is required as soon as possible.

Recommendation 2:

That the federal government, through the use of an effective information campaign, undertake a more concerted effort to communicate directly and effectively to European decision-makers that rapid change in the structure of the Canadian economy has occurred. Europeans need to be informed that Canada has now evolved from being primarily a resource-based economy to one that encompasses many modern, knowledge-based industries.

Recommendation 3:

That this revamped "rebranding" strategy, designed to reposition Canada’s image abroad as a world leader in the new economy, make greater use of the resources of European companies having successful Canadian operations; Canadian firms with sizeable presence in Europe; incoming visits by journalists, especially those representing specialized newspapers and journals; student exchanges; images of the new Canadian reality displayed prominently at Canadian airports; and the Canadian flag.

Recommendation 4:

That, in collaboration with the provinces, Canadian tourism promotion campaigns in Europe be reassessed and modified, where applicable, to include information on the rapid transformation that has occurred in Canada’s economic structure and the lifestyle and high quality of life that Canadian knowledge workers enjoy. Greater targeting of Canada’s cities as business and tourist destinations should be considered.

Recommendation 5:

That the federal government review the needs of Canadian business, especially those of small- and medium-sized firms, for accurate and up-to-date information about individual European country markets as well as the policies and practices of the integrated European Union. Remedial steps should be taken to respond to information deficiencies.

Recommendation 6:

That the federal government provide a boost to DFAIT’s direct trade and investment promotion budget in Europe. These increased resources should be targeted towards expanding Canadian involvement in European trade fairs, thereby enhancing Canada’s image and presence within the European business community, and to a broader, more extensive search for additional investment throughout Europe.

Recommendation 7:

That the Government of Canada rededicate itself at home to generating interest on the part of small- and medium-sized Canadian companies in participating in European markets, more adequately preparing "new to Europe" firms for European export opportunities, and following up on these corporations once they are established overseas. More funds and personnel should be allocated to meet these objectives.

Recommendation 8:

That the federal government review and modify its export promotion activities and resources to ensure that complementarity between its activities and those of the provinces is achieved, that closer links with Canadian business organizations are forged, and that adequate recruitment of foreign officers with the necessary private sector skills to help open up European markets to Canadian firms is undertaken.

Recommendation 9:

That an Investment Team Canada, integrating the resources of relevant federal departments and agencies, other governments in Canada, and the private sector, and equipped with a mandate to promote foreign investment in Canada, be established as soon as is feasible. A national strategy to attract investment from Europe and elsewhere should be developed with an eye to removing existing overlap and duplication between the various levels of government. As part of this strategy, emphasis should also be placed on encouraging and facilitating reinvestment once foreign companies have been established in Canada.

Recommendation 10:

That the federal government make every possible effort to ensure that Europe be reinstated as a priority destination for future Team Canada missions, and that both trade and investment promotion are designated as key objectives for such missions.

Recommendation 11:

That the Government of Canada rapidly develop a business case for a free trade agreement with the EU and undertake an aggressive campaign both in Canada and in Europe to promote its findings to key decision-makers. In this promotional campaign, every effort should be made to seek out and utilize champions of transatlantic free trade.

Recommendation 12:

That the federal government rededicate itself to concluding a "first generation" free trade agreement with EFTA as soon as possible and then enter into further negotiation so as to finalize a broader "second generation" accord by the end of December 2002.

Recommendation 13:

That the Government of Canada accelerate efforts to seek consensus, both within the Quad group of countries and between developed and developing countries, on a broadly based but manageable WTO negotiating agenda for the next round of multilateral trade liberalization.

Recommendation 14:

That Canada, in conjunction with like-minded countries such as those represented by the EU, encourage World Trade Organization members to create a more efficient decision-making procedure within the WTO while respecting individual countries’ sovereignty, the need for transparency, and the need for consensus building within the institution.

Recommendation 15:

That Canada aggressively begin a global campaign to launch an in-depth examination of the world’s trade and development organizations, with a view to fashioning a more effective, cohesive, and efficient network of global institutions. Where institutions have outlived their usefulness, they should be dismantled.

Recommendation 16:

That the Government of Canada encourage WTO member states to undertake an extensive examination of alternatives to the existing dispute settlement mechanism to render it more effective. Such issues as the need for time limits on WTO compliance and the usefulness of giving greater priority to compensation as opposed to retaliation as a form of settlement should be given serious consideration.

Recommendation 17:

That the federal government redouble its efforts to expand the Canada-EU bilateral relationship. Possible measures to be considered within the European Union-Canada Trade Initiative framework include: negotiating mutual recognition agreements in a larger number of industrial sectors, making progress in the area of trade facilitation, and establishing improved bilateral mechanisms to resolve trade irritants. The formation of a bilateral group under ECTI to systematically address regulatory barriers to Canada-EU trade should be considered.

Recommendation 18:

That the federal government increase its support of, and actively encourage business participation in, the Canada-Europe Round Table For Business (CERT) initiative. The government should also recommend to CERT that it review its membership fee structure in order to stimulate greater participation by small- and medium-sized companies.

Recommendation 19:

That the Government of Canada attempt to ensure that any support provided by the EU to preserve the multifunctionality of agriculture not be trade distorting. The government should work with the EU to arrive at an international definition of the multifunctionality concept.

Recommendation 20:

That in the WTO negotiations on agriculture, Canada not deviate substantially from its initial negotiating objective of (a) removing EU agricultural export subsidies; (b) significantly enhancing access by Canadian agricultural producers to the European market; and (c) ensuring that the EU’s production subsidies are not trade distorting.

Recommendation 21:

That the Government of Canada work diligently within the international community to achieve international agreement on the definitions of genetically modified (GM) or biotech products, science-based standards of producing GM products that the international community can recognize, and the labeling rules that are required.

Recommendation 22:

That the Government of Canada, in conjunction with the provinces, seize every possible opportunity to enhance cooperation between Canada and the EU on regulatory policy in the areas of health, safety, environment, and technical standards, and share Canada’s regulatory experience with European decision-makers and, where appropriate, the public at large. These efforts should be directed through Canada’s overseas posts, industry associations active in Europe, and Canadian participation in international organizations in which standards are discussed, developed and monitored.

Recommendation 23:

That Canada and the EU seek common understanding on the meaning of the precautionary approach and the manner in which it is to be applied to regulatory practices. Ultimately, such an understanding should be arrived at within a multilateral setting.

Recommendation 24:

That the federal government make public any assessment of the probable positive and negative effects of EU enlargement on the Canadian economy. On the basis of these findings, the government should formulate an effective initial strategy to deal with the upcoming enlargement. The issue of potential compensation for forgone market access should also be explored, and timely and targeted information on the enlarged European market provided to Canadian businesses.

Recommendation 25: