Would you like to work in/with Canada? Well, you are now able to do it from EUrope!
The Comprehensive Economic and Trade Agreement (CETA) between Canada and the EU has been voted this last 15th of February by the European Parliament (EP). Since half of the EU’s economic gain from CETA is expected to come from more trade in services, we thought it would be useful to describe the Treaty’s effects for professionals such as our members of EurEta.
What does it mean concretely? Here are a few implications for us:
There is a removal of custom duties with Canada, the end of the need for double testing in some areas. EU firms will also be able to bid to provide goods and services at federal, provincial and municipal level. This is important because Canada’s provincial public contracts market is worth twice as much as the federal one,
CETA provides a framework for the EU and Canada to recognize each other’s qualifications in regulated professions such as architects, accountants and engineers. CETA’s provisions allow relevant regulatory or professional bodies in both jurisdictions to present draft Mutual Recognition Arrangements (MRAs) to a Joint Committee on Mutual Recognition. An MRA becomes binding once the Committee is satisfied that it is consistent with the provisions of the CETA. Professional service providers in the host jurisdiction then enjoy no less favorable treatment than home providers, irrespective of nationality, citizenship and the location of the training institution.
Certain criteria have to be satisfied by the drafters of the MRA: they need to provide an assessment of the potential value of an MRA, on the basis of criteria such as the existing level of market openness, industry needs, and business opportunities. Non-binding guidelines envisage a sequence of 4 steps: “Verification of equivalency” is the first one: it looks at the scope of professional qualification and practice. Consequently, the negotiating entities should: (a) identify activities or groups of activities covered by the scope of practice rights of the regulated profession; and (b) identify the qualifications required in each jurisdiction. The second step is “Evaluation of substantial differences”: these may exist in “essential knowledge”, in the content or duration of basic training, and in the lack of congruence in the component disciplines of a particular professional practice. The third step is: “Compensatory measures” taking the form of adaptation periods or aptitude tests. “Identification of the conditions for recognition” is the fourth one: this consists of a summary of the above steps, setting out in precise terms what they represent for the specific profession featured in the MRA.
It is useful to note that: “equivalency” has a wide meaning in this case, it is used to apply to course content as well as to the component disciplines of professional practice. Moreover, the CETA, like all trade agreements, must be consistent with EU law. It cannot stand above EU legislation on the recognition of professional qualifications. MRAs will therefore be obliged to take an approach based on generic and specific learning outcomes.
CETA will cut costs for EU firms that export to Canada thanks to assessment certificates. These prove that a product has been tested and meets: the relevant technical rules and regulations and any health, safety, consumer protection or environmental standards that also apply. This means that, under certain circumstances, a conformity assessment body in the EU can test EU products for export to Canada according to Canadian rules and vice versa.