Romania: CETA And Mutual Recognition Agreements

Last Updated: 19 September 2019
Article by Camillo Giovannini

We all know it, but just in case somebody missed it, CETA means "Comprehensive Economic and Trade Agreement" and it is a free-trade agreement between Canada and the European Union that will eliminate up to 99% of the duty tariffs between Canada and the EU.

When we hear on the news about CETA, it is mostly about two things:

1.Recent steps forward from the EU or Canada's institution toward the implementations,

2.Group of people X from country Y that are against CETA for the reason Z.

With that in mind, we will briefly talk about these two points moving forward:

1. CETA is moving forward, and even if the major newspapers do not cover it step by step, the European Parliament and three countries have already ratified the agreement at their local parliaments (Latvia, Denmark and Spain).

2. We are certain that CETA is the most important and comprehensive agreement that the EU and Canada have ever negotiated, and discussions are a normal and healthy follow up (if good points are made).

Usually, a lot of people consider that, due to the fact that the CETA must be ratified by all EU's 28 countries (UK is still in until March 2019), and even some regional parliament for some countries, the application will be postponed for at least 2-3 years.

This is not entirely true, or better said, it is true only for approximately 10% of the CETA, that require approval by EU member states and regional chambers (areas such as investment protection and the new investment court system), in the meantime, a provisional application on the other aspects is possible.

This was clarified by a recent decision made by the European Court of Justice on EU Competence in the EU-Singapore Trade Deal. Even if the decision was taken for the EU-Singapore free-trade agreement, clarifying the exclusive competencies of the EU and the competencies that must be shared with the member states, it still gave us a lot of discussion material regarding the following two aspects (we are going to detail only the first one, though):

1. Which chapter of the CETA can be subjected to provisional application due to the fact that the EU parliament already approved the deal.

2. How this will influence the negotiation for Brexit between the EU and the UK government, now that the ECJ clarified that the areas marked as "Non-direct foreign investment" and "dispute settlement between investors and States" are under the competence of the 38 parliaments within the EU. (we will discuss this matter separately, at a later date)

Excluding the areas underlined by this decision, the other chapters of CETA are allowed to be enforced within a provisional application, thus providing us with the last piece of the puzzle: the date of official enforcement of the provisional application. The date has been established during the G20 in Hamburg as Prime Minister of Canada, Justin Trudeau, and the President of the European Commission, Jean-Claude Juncker, agreed to set the start of the provisional application of the CETA from the 21st of September 2017.

A small recap of the information we have so far:

1. Canada and EU discuss a free trade agreement, both Canada and EU Parliaments approve the agreement during 2017.

2. ECJ ruled the competencies that could be enacted for a provisional enforcement, without the approval of the EU member states.

3. Canada and the EU set the provisional application date starting September 21st 2017.

I would like to make some consideration regarding one of the aspects that I feel less discussed: the "MRA"- Mutual Recognition Agreements for the professions.

The MRA, covered by chapter 11 of the CETA, will be part of the provisional application, as confirmed by the ECJ, and for our profession it could be of interest to be analyzed in detail.

The aim of the MRA is to help the mutual recognitions of professional qualifications, such as doctors, architects, accountants, engineers between Canada and the EU, helping the integration between the two blocks.Right now, strictly speaking for the accountants, it already exists some MRA between the CPA and local EU bodies, but these are bilateral agreements negotiated between the CPA of the X Canadian province and the local body of Y EU country. Also, the national recognized bodies can vary province by province, for example The Institute of Chartered Accountants of India is recognized in Ontario, but not in Quebec.

The fact that professional qualifications are of provincial competence (for Canada) and of member state competence for the EU, complicate the application of chapter 11. In the specific, the CETA due to the fact that the EU and the federal government are not responsible for the professional bodies, cannot oblige the regulators of the various member states/provinces to negotiate and sign MRA's.

What CETA's chapter 11 actually does are two important things:

1. Encourage its relevant authorities or professional bodies, as appropriate, to develop and provide Joint Committees on Mutual Recognition (art 11.3.1)

2. Provide guidance/framework on such committees and how they should operate. (art 11.3.2-6)

Guidance includes recommendation on planning and developing with a focus on the potential value. These are specified especially in art 11.3.2:

A recommendation shall 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, for example, the number of professionals likely to benefit from the MRA, the existence of other MRAs in the sector, and expected gains in terms of economic and business development. In addition, it shall provide an assessment as to the compatibility of the licensing or qualification regimes of the Parties and the intended approach for the negotiation of an MRA.

We do expect committees to start forming, or at least discuss the opportunity to create a mutual integration/recognition system, considering that the currents MRA cover basically the north-west of the EU.

So far, not many details have been disclosed about any committee at all, we only know that ,within Canada, discussions on the MRA have started, but nothing more.

Together with the colleagues from Crowe Soberman (Toronto) and Crowe Horwath International, we will keep you informed regarding this topic, and we will provide you with more articles about CETA in the future, as there is a lot to cover that could impact us and our clients.

Special thanks to Patrick LeBlond, associate professor and holder of the CN - Paul M. Tellier Chair on Business and Public Policy at the University of Ottawa's Graduate School of Public and International Affairs, for insights on the topic.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
 
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions