Patrick Fafard
Patrick Leblond
Graduate School of Public and International Affairs
University of Ottawa
Challenges for Canadian Federalism
Canada has been negotiating a comprehensive economic and commercial agreement with the European Union (EU) since 2009. This agreement is described as “comprehensive” because it covers not only tariff barriers, but also non-tariff barriers such as different standards and regulations dealing with the production and the nature (form, content, quality, etc.) of goods and services offered in Canada and in Europe. Thus, the Comprehensive Economic and Trade Agreement (CETA) is considered a “second generation” free trade agreement because it is intended mainly to reduce or eliminate indirect barriers to trade and investment (as opposed to direct barriers such as tariffs and quotas). If a deal can be finalized, CETA would be the first agreement of this type between rich countries, and would very likely serve as an international model. However, CETA also presents major challenges for Canadian federalism.
Due to its comprehensive nature, CETA would affect several matters of provincial jurisdiction (shared or not shared with the federal government). For example, CETA covers fields such as energy, the environment, education, transportation, science and technology, etc. It also aims, among other things, to encourage workforce mobility between Canada and the EU, which entails the recognition of professional skills obtained on either side of the Atlantic. It also aims to eliminate discrimination against foreign companies in favour of local ones in the awarding of contracts by provincial and municipal governments (the latter being subject to provincial law). Note that the Government of Canada and the EU are both signatories of a WTO agreement, the plurilateral Agreement on Government Procurement, which stipulates that public contracts must be granted without regard to the nationality of the company that responds to the call for tenders. However, Canadian provinces and territories are exempt from this agreement, which is not the case for regional and local governments in the EU.
