CCCE Chief Executive Outlines a Strategy for Deeper Ties Between Canada and the European Union

May 15, 2008

The head of the Canadian Council of Chief Executives today urged Prime Minister Harper and European Union (EU) leaders to embrace a dynamic 21st century vision of Canada-EU relations focussed on a revitalized economic partnership.

In an address to a Public Policy Forum conference in Ottawa, Thomas d’Aquino said that, “Canada and the European Union have for too long ignored the natural forces that make for a closer and more productive transatlantic relationship.”

“While trade and investment between Canada and the European Union continue to grow driven by aggressive private sector actors, Ottawa and Brussels have not kept pace,” said Mr. d’Aquino.  “The economic relationship has too few political champions and lacks an institutional framework that would accelerate growth and open up new opportunities,” stated the CCCE Chief Executive.

The 27 Member States of the European Union collectively rank as Canada’s second largest trading partner and as the second most important source of foreign direct investment and new technologies.  Reciprocally, the EU ranks second as a destination for Canadian foreign direct investment abroad.

Mr. d’Aquino reminded his audience of the importance of the European Union in a global context.  “The Member States collectively make up the world’s largest market in terms of GDP, the world’s largest importer and exporter, and the world’s biggest investor.  While these impressive facts are not lost on many of my business colleagues in Canada, too many Canadian companies are passing up opportunities in Europe.”

“The same is true for many of our European counterparts who forget that Canada is a leading performer among the G8 economies with an enviable fiscal position, a strong export record, a powerful energy and resources base and an impressive number of globally competitive companies — an economy that is fully integrated within a $15 trillion North American market.”

Mr. d’Aquino urged leaders on both sides of the Atlantic “to cast aside the benign neglect of past decades and to recognize the very real synergies that are there for the taking.  The new 21st century Canada-European Union partnership requires at the outset a powerful push from our respective leaders.  The forthcoming Summit in Montreal on October 17, 2008, would be the ideal venue for such an initiative.”

At the Summit in Montreal, the European Union will be represented by French President Nicolas Sarkozy and Commission President José Manuel Barosso.

Mr. d’Aquino said he was encouraged by growing interest in both Canadian and European business circles for a deepening of economic ties between the two partners.  In May 2007, the CCCE and senior European business leaders under the aegis of BUSINESSEUROPE addressed a joint letter to Prime Minister Harper, German Chancellor Angela Merkel and EU President José Manuel Barosso, calling for concrete steps to advance bilateral trade, investment, technology and regulatory co-operation.

“The interest of our European counterparts remains strong as evident by the views expressed at this conference by senior representatives of BUSINESSEUROPE.  In the coming months, the CCCE andBUSINESSEUROPE will intensify efforts on both continents to build momentum for a comprehensive economic co-operation agreement.”

Mr. d’Aquino outlined some of the priorities that should be part of such an arrangement:

• the elimination of remaining tariff and non-tariff barriers;
• the opening of services markets at the federal and sub-federal levels;
• broader reciprocal access to public procurement;
• ensuring labour mobility as well as speedy progress toward mutual recognition of professional qualifications;
• stronger intellectual property protection;
• an air services liberalization accord;
• a sustainable energy and environment agreement;
• an ambitious regulatory cooperation agreement beginning with a commitment to action in priority sectors;
• stepped-up convergence in taxation and competition policy; and
• a dispute settlement mechanism that would be binding on state-to-state disputes.

Mr. d’Aquino praised the leadership of International Trade Minister David Emerson who is urging closer Canada-European Union economic ties to take advantage of global value chains and competitive synergies.  Currently, Canadian and European government officials together with private sector representatives are involved in a study of future options which Minister Emerson hopes will lead to a transformative initiative at the forthcoming Canada-EU Summit.

Mr. d’Aquino also praised the leadership of Premier Jean Charest of Quebec who has been a long-time champion of closer Canada ties with the European Union and who has encouraged fellow Premiers to support the idea.  “Enthusiastic engagement on the part of Canada’s provincial governments is important to a successful negotiation and implementation of a comprehensive agreement,” Mr. d’Aquino said.

The CCCE Chief Executive emphasized that a new Canada-European Union negotiation would not undermine the current round of World Trade Organization talks.  “To Canada, the WTO remains the preeminent forum for global trade liberalization.  But with WTO talks badly stalled, a deal between Canada and the EU could serve as a catalyst,” Mr. d’Aquino said.

He urged political leaders and officials alike not to delay or equivocate, or to set goals for a negotiation that are too modest.  “Business leaders on both sides of the Atlantic will continue to pursue opportunities with or without new rules,” he warned, “and will take an interest only in a negotiation that is deep, comprehensive and meaningful.”

Mr. d’Aquino reminded his audience of the close linkages between countries and citizens of the European Union with Canada.  “We share a rich history, Canada is home to millions of people of European descent; we share important values and a deep respect for the rule of law and good governance; we are reliable and trusted partners in the North Atlantic Treaty Organization and in the advancement of global security; and we share a massively important relationship with a common ally, the United States.”

“These are powerful imperatives which, coupled with the certainty of more vigorous economic growth and cooperation, create an irresistible case for Canada and the European Union to move forward without delay.”

The CCCE is a non-partisan organization composed of 150 chief executives and leading entrepreneurs from all major sectors and regions of Canada. Member chief executives lead companies that collectively administer $3.5 trillion in assets, have annual revenues of more than $800 billion, and are responsible for the vast majority of Canada’s exports, investment, research and development, and training.

In addition to Mr. d’Aquino, the members of the CCCE’s Executive Committee are:  Chair, Gordon M. Nixon, President and Chief Executive Officer, Royal Bank of Canada; Honorary Chair Richard L. George, President and Chief Executive Officer of Suncor Energy Inc.; and Vice Chairs Dominic D’Alessandro, Paul Desmarais, Jr., Jacques Lamarre, Hartley T. Richardson and Annette Verschuren, the chief executives respectively of Manulife Financial, Power Corporation of Canada, SNC-Lavalin Group Inc., James Richardson & Sons, Limited and The Home Depot Canada.