The announcement was made during a summit in Brussels, where leaders from both sides emphasised the need to deepen transatlantic trade amid global economic uncertainty and shifting geopolitical dynamics.
Canada and the EU have agreed to modernise the Comprehensive Economic and Trade Agreement (CETA) following a summit in Brussels.
It aims to reduce trade barriers, support SMEs while expanding co-operation in digital services and cross-border data flows.
Leaders including Ursula von der Leyen said it will strengthen economic resilience, diversify trade partnerships and secure supply chains.
The initiative seeks to update the 2017 free trade deal by reducing remaining non-tariff barriers, improving regulatory co-ordination and creating clearer investment dispute mechanisms, particularly to support small and medium-sized enterprises.
Canadian Prime Minister Mark Carney has set a target of doubling Canada’s non-US trade within the next decade, positioning Europe as a key partner in achieving that goal. According to Canada’s Trade Minister Maninder Sidhu, the effort aligns with the country’s broader strategy to diversify trade beyond its largest partner, the United States, which currently accounts for nearly 70 per cent of Canadian exports and leaves the country vulnerable to shifts in American trade policy.
The agreement also launches talks on a digital trade framework covering data flows, cybersecurity, artificial intelligence regulation and digital services.
Maros Sefcovic, the EU’s Commissioner for Trade and Economic Security, said the initiative reflects the growing importance of digital commerce, noting that more than 40 per cent of EU-Canada services trade is already delivered digitally.
European Commission President Ursula von der Leyen highlighted that the partnership would support sustainable development, innovation and secure supply chains, particularly in areas such as rare minerals, clean energy and advanced technologies.
The modernisation effort underscores both partners’ commitment to strengthening economic resilience, promoting sustainable trade practices and deepening cooperation in the digital era.
Fibre2Fashion News Desk (CG)
