Canada and European Union sign Action Plan

Prime Minister Jean Chrétien today announced that Canada and the European Union signed a Political Declaration and Action Plan to strengthen and modernize Canada's close, historic links with the EU. These documents define the parameters of Canadian-European relations in areas such as trade, foreign and security policy and new, emerging global issues such as migration and the internationalization of organized crime.

"This is an important day for Canada and the European Union," declared the Prime Minister. "The Action Plan will serve as a foundation on which to carry our historically close trans-Atlantic links to Europe into the new millenium."

The European Union was represented at this trans-Atlantic meeting by Irish Prime Minister John Bruton, the current President of the EU Council, and European Commission Vice President Sir Leon Brittan.

Main elements of the Action Plan are: a joint-study on the elimination of tariff and non-tariff trade barriers; renewed efforts to negotiate the unfinished aspects of the Uruguay Round; the review and improvement of trade dispute mechanism; Canadian participation in the design of Europe's new security architecture; and Canadian-European cooperation in promoting and strengthening international conventions concerning certain conventional arms and the elimination of anti-personnel mines.

The European Union is the world's single largest market, accounting for about 37% of total world trade. The EU is the world's largest exporter of services and largest importer of goods. It is Canada's second most important trading and investment partner after the United States. Canadian exports to the EU, which increased 33% in 1995 over 1994, support over 130,000 jobs in Canada. In 1995, direct foreign investment from European Union countries in Canada totalled $36 billion.

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Canada and Europe are uniquely and closely linked by history, trade, culture and common values. For over 50 years, the peoples of Canada and Europe have enjoyed the benefits of a partnership that has brought prosperity, stability and security to both sides of the Atlantic.

Recognizing the special character of this relationship, Canada broke new ground in 1976 when it signed an economic and trade framework agreement with what was then called the European Community. It was the first of its kind concluded by the Community with a partner in the industrialized world.

In 1990 the two partners signed the Transatlantic Declaration formalising the changes which marked the evolution of Canada-Europe relations, including the degree of co-operation and common objectives. Since then, upheavals in the world order have radically altered a relationship which was formerly based mainly on research and maintainance of a common set of rules for internatioal security. The speed and scope of these changes have compelled Canada and the European Union to update the terms of a partnership that must take up new challenges and redefine its objectives in accordance with changing international dynamics.

In April 1996, Canada and the European Union (EU) agreed to negotiate the terms of an action plan and a political declaration that would broaden and deepen transatlantic co-operation in all areas.

With the Political Declaration and the Action Plan, Canada and the EU open a new era in an already long and productive relationship, characterized by the transatlantic partners' desire to work more closely toward fulfilling their common political, trade and economic objectives.

The Political Declaration underscores the common values, history, traditions, and culture that bind Canada and the EU together. It commits both parties to cooperate in the pursuit of common interests in the areas of trade and security as well as respect for democratic values. The Action Plan , which encompasses both the 1976 Joint Framework Agreement and the 1990 Transatlantic Declaration , is effectively an annex to the Political Declaration and serves as a roadmap for future cooperation between Canada and the EU in four main areas:

(a) Economic and Trade Issues: The Action Plan obliges both partners to undertake a study on ways to facilitate trade in goods and services and further reduce or eliminate tariff and nontariff barriers. In addition, the agreement calls for other mechanisms aimed at the timely resolution of trade disputes and the completion of a number of ongoing trade negotiations. The Action Plan also calls for cooperation on new issues such as trade and the environment, trade and competition policy, and trade and labour standards and includes the full participation of Canadian business.

(b) Foreign Policy and Security Issues: The Action Plan reiterates the engagement of the two partners in European security and outlines a strategy to promote democracy, the rule of law, respect for human rights, and support for effective international efforts in the resolution of international and civil conflicts. The Action Plan reaffirms Canada-EU commitment to strengthening cooperation on Euro-Atlantic and global security issues as well as development and humanitarian assistance.

(c) Global Issues: The agreement commits Canada and the EU to work closely together on issues such as the preservation of the environment, Arctic cooperation and developing joint measures to combat international organized crime, drug trafficking, terrorism, money laundering and smuggling. It commits Canada and Europe to increase co-operation on: controlling international migration, combatting sex tourism, co-ordinating the development of the information superhighway, enhancing transborder data flows, and improving co-ordination in the delivery of legal and technical assistance programs for Central and Eastern Europe.

(d) Fostering Links: The Action Plan also seeks to build bridges between Canada and the EU by strengthening educational and cultural links, developing co-operation in the fields of science and technology and encouraging business-to-business and people-to-people contacts.

• Canada and the European Union