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Prime Minister Announces Canada-EU Agreement on Competition Law
June 17, 1999
Ottawa, Ontario
Prime Minister Jean Chrétien today announced the signature of a new Canada- European Union (EU) agreement on competition law, as well as progress in trade cooperation.
"All Canadians will benefit from closer cooperation between our competition authorities. In a truly competitive economy, Canadians can enjoy low prices, product choice and quality services," said the Prime Minister. "We look forward to the benefits that will result on both sides of the Atlantic for our businesses and consumers."
The announcement followed today's Canada-EU Summit in Bonn, Germany, between the Prime Minister, President of the European Council and German Chancellor Gerhard Schröder and President of the European Commission, Jacques Santer. Summit discussions covered a broad range of bilateral and international issues, including the situation in Kosovo, the Stability Pact for the Balkans, and trade issues such as beef hormones, asbestos and genetically-modified organisms.
The results of the Canada-EU Summit include:
The Canada-EU Competition Agreement, which is designed to enhance economic and trade relations between Canada and the EU by increasing cooperation and coordination in the enforcement of competition laws and in anti- competitive activities in their respective jurisdictions. This agreement will be beneficial to Canadian consumers and will ensure clear rules of the game for business.
Progress in the EU-Canada Trade Initiative (ECTI), a framework to facilitate bilateral and multilateral trade cooperation. The ECTI was developed under the 1996 Canada-EU Joint Action Plan, and was launched following the last summit meeting, held in Ottawa in December 1998. Leaders reviewed ongoing efforts to enhance cooperation in the World Trade Organization, on multilateral trade issues and, bilaterally, in the seven areas identified at the last summit: standards and regulations, professional services, culture, business-to-business contacts, government procurement, intellectual property rights and competition issues.
Summits are held approximately twice per year, as part of a regular schedule of meetings between Canada and the European Union at the head-of-government, ministerial and senior official levels. Also attending the Summit were: International Trade Minister Sergio Marchi; German Minister of the Economy Werner Müller and acting Vice-President of the European Commission Sir Leon Brittan.
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PMO Press Office: (613) 957-5555
Competition Bureau
Information Centre: (613) 997-4282 or 1-800-348-5358
BACKGROUNDER
CANADA-EU AGREEMENT ON THE APPLICATION OF COMPETITION LAWS
The increasing globalization of many sectors of the economy has resulted in a large increase in the number of competition cases being examined by both the European and the Canadian competition authorities. The agreement signed today comes into effect immediately. It is designed to promote cooperation and coordination between the competition authorities of Canada and the European Communities, and to eliminate, or lessen the impact of, the differences in the application of their respective competition legislation. To this end, the Agreement sets out a framework for notification, coordination and cooperation on enforcement activities, exchange of information and avoidance of conflict.
By providing a concrete framework for cooperation between the European Commission and the Canadian Competition Bureau, the agreement should increase the effectiveness of enforcement by both authorities, and reduce the risk of the competition authorities reaching conflicting or incompatible decisions in individual cases. The agreement is expected, in particular, to facilitate closer cooperation in combating global cartels, which can be so harmful to the interests of both Canadian and European consumers, and to ensure enhanced coordination in the control of proposed mergers requiring clearance in both jurisdictions.
The Agreement will benefit consumers on both sides of the Atlantic by enhancing competition in Canada and the European Communities in terms of reduced prices and increased product choices. Industry Canada's Competition Bureau will implement the agreement on behalf of Canada.
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