Meeting of bilateral dialogue on forest products

October 20, 2022 (by videoconference)

Joint report

The fifth Comprehensive Economic and Trade Agreement (CETA) Bilateral Dialogue on Forest Products, established under Article 25.4 of the CETA, took place by videoconference on October 20, 2022. Discussion topics included:

Forest products trade

Parties discussed current trade in forest products noting that the number and pace of regulatory and policy developments in this area is increasing in Canada, the European Union (EU) and internationally. Parties also noted the strong trading relationship in forest products five years after the CETA’s provisional application and their shared interest in its continued flourishing. The EU provided an update on its proposed Regulation on deforestation-free supply chains. In that context, Canada flagged its concerns with the EU’s proposed regulation noting that it had the potential to disrupt Canadian exports of forest products to the EU despite Canada’s low risk for deforestation. Parties expressed interest in working together on an internationally-recognized definition of forest degradation, which is a key element of the proposed Regulation.

Industrial policies

The EU provided an update on the Renewable Energy Directive II implementation status as well as the on the proposed Amendment to the Renewable Energy Directive II. Canada flagged concerns with proposed amendments that could affect Canadian exports of woody biomass to the EU and asked the EU to consider its concerns as the amendment process moved forward.  Canada presented on its Green Construction through Wood (GCWood) Program which encourages the greater use of wood as a green building material in infrastructure projects and supports Canada’s transition to a low-carbon economy.

Forest management policies

Parties exchanged information and discussed current forest management policy frameworks and programs. Canada presented on its 2 Billion Trees Program aimed at contributing to Canada’s climate change and biodiversity objectives by supporting new tree planting projects. Canada also presented on its forest data collection and monitoring systems, from in situ data collection through remote sensing to national forest assessment and reporting.  

Planning for next meeting

It was notionally agreed that the next bilateral dialogue would take place in fall 2023.

Participants

EU (European Commission)

• Directorate General for Internal market, Industry, Entrepreneurship and Small and Medium-sized Enterprises (SMEs)
• Directorate General for Energy
• Directorate General for Environment
• Directorate General for Research and Innovation
• Directorate General for Trade
• Joint Research Centre

Canada

• Global Affairs Canada: Technical Barriers and Regulations Division
• Natural Resources Canada – Canadian Forest Service: Trade and International Affairs Division, Natural Climate Solutions Division and Pacific Forestry Centre
• Mission of Canada to the European Union