Regulatory Cooperation to Remove Non-tariff Barriers to Trade in Products: Key Challenges and Opportunities for the Canada-EU Comprehensive Trade Agreement

Abstract

Regulatory cooperation to eliminate non-tariff barriers to trade (NTBs) resulting from differences in product standards and technical regulations has become a prominent issue in Preferential Trade Agreement (PTA) negotiations. This paper looks at the most important challenges and opportunities for a successful model for regulatory cooperation under the Canada-EU Comprehensive Trade Agreement (CETA). It argues that the CETA will represent a compromise between the two dominant models in international trade: the EU and North American approach to regulatory cooperation in PTAs. In addition, because of the specificity of Canada's federal structure, it is argued that the CETA will be able to bring about greater regulatory coherence within Canada by disciplining provincial regulation that results in NTBs. This paper argues that, while a sui generis case, in order for it to be successful, regulatory cooperation under the CETA will have to incorporate certain elements established in theory and in previous state practice. Finally, as a first comprehensive transatlantic PTA, regulatory cooperation under the CETA will in itself become a model for future such endeavours between economically developed countries, especially in its implementation aspect.