Copyright 2008, Blake, Cassels & Graydon LLP

Originally published in Blakes Bulletin on International Trade, June 2008

On June 11, 2008, a Joint Action Plan between Canada and France was signed by the Honourable David Emerson, Canada's Minister of Foreign Affairs and International Trade, and his counterpart, Christine Legard, France's Minister of Economy, Industry and Employment. The Canada-France Joint Action Plan represents a commitment over the next two years towards further liberalizing trade and investment between the two nations, and will potentially open the door to further trade deals between Canada and the European Union (EU).

The focus of the Canada-France Joint Action Plan will be to ensure that the economies of both countries play a key role in global business value chains. Under the Plan, the countries will adopt a collaborative approach to further enhancing economic relations, with a view to overcoming challenges to competitiveness and economic growth. The three primary objectives of the Plan are to:

  • Strengthen co-operation in areas related to competitiveness, innovation, and science and technology

  • Support a closer economic partnership between Canada and the EU, and

  • Assist in the development of small and medium-sized enterprises in the Canada and EU markets.

The Plan will focus on certain key sectors including energy, aeronautics, information and communications technologies, life sciences, and the environment.

France and Canada are longstanding trading partners. Having one of the world's largest economies, France is Canada's ninth largest trading partner and its fourth largest in Europe. Canada's top imports from France are medicaments, wines, beauty products and perfumes. Among other things, France relies on Canada for its exports of uranium, airplane and helicopter parts, and vaccines. Statistics indicate that by the end of 2007, the bilateral merchandise trade between Canada and France reached a record level of $8.2-billion.

France is also a significant foreign direct investor in Canada, accounting for approximately $17.4-billion in investment stock in 2007. Likewise, Canadian investors hold a significant amount of investment stock in France, comprising approximately $14.6-billion.

Already in 2008, the Canadian Government has demonstrated significant strides in terms of deepening Canada's access to global markets and networks through a robust international negotiations agenda. With the WTO multilateral trade negotiations moving at a slow pace, Canada has joined other countries in seeking to enter into bilateral and regional free trade agreements to expand opportunities available to traders. Prime examples of this momentum include the recently concluded agreements with Colombia, Peru, and the European Free Trade Association, comprising Iceland, Liechtenstein, Norway, and Switzerland. The Canada-France Joint Action Plan is another such example, one of particular importance as a gateway to further negotiations with the EU. On July 1, 2008, France will assume the Presidency of the EU Council, and as such, will take a leadership role in the Canada-EU Summit to be held in Montréal this October.

In January 2009, representatives of Canada and France will conduct a mid-term review of the implementation of the Joint Action Plan. A full assessment of the results achieved through the Joint Action Plan will be 'first on the agenda' at the 16th Canada-France Economic Meeting, which will be held in Canada at the end of 2009.

Canadian importers, exporters, and investors will want to stay apprised of developments under the Joint Action Plan, and other such agreements, in order to take advantage of the new opportunities further trade liberalization will bring.

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