Joint summary of discussion following the second Trade and Sustainable Development (TSD) Specialised Committee established by the Trade Continuity Agreement (TCA) between Canada and the United Kingdom of Great Britain and Northern Ireland (UK)

March 8, 2023 Ottawa and London (via videoconference)

Canada and the United Kingdom (UK) held the second TSD Specialised Committee under the Trade Continuity Agreement (TCA) on 8 March 2023. Officials from both Parties shared updates and best practices on how they are collaborating and advancing the goals of trade and environment and labour not only in the context of the TCA, but beyond. Following the introductions of the co-chairs and officials, the Committee moved on to the agenda.

Administrative Business

Following the formal adoption of the agenda, both Parties decided to adopt the Rules of Procedure established by the Joint Committee. The Parties then formally adopted the two list of experts, one for Trade and Labour and one for Trade and Environment, that had been exchanged in advance of the meeting. The two lists can be found in Annex A.

Session on Trade and Labour

The Committee discussed updates on International Labour Organization (ILO) Convention ratifications and approach to cooperation as well as an exchange of information on encouraging wider labour participation.

Both Parties began by sharing the progress they have made in ratifying nine of the ten core ILO conventions. Canada highlighted its role in the development and adoption of ILO convention C-190, including its two-year chairing of the ILO standard-setting committee that negotiated the convention. Both Canada and the UK shared that they have taken steps towards considering the potential ratification of the tenth core ILO convention, C-155 (Occupational Safety and Health Convention).

On cooperation, Canada outlined that it often sees labour chapters in Free Trade Agreements (FTA) and the associated capacity-building as a way to engage with partner countries to help them fulfill their trade and labour commitments and ultimately increase their level of compliance with fundamental labour rights and principles. Canada shared that it provides capacity building and technical assistance to many partner countries highlighting, in particular, additional funding to promote greater compliance with FTA labour provisions as part of Canada’s Indo-Pacific Strategy. With more developed economies, Canada explained that it focuses more on exchanging good practices and information on labour initiatives in third countries.

On cooperation, the UK shared that it has been focused on establishing relationships, information exchanges and identifying areas of mutual interest with its trading partners. It explained that this work has been guided by two key principles – delivering something tangible with the resources available, and to complement, not duplicate work already being carried out.

Moving to encouraging wider participation in the work force, Canada outlined how it has been targeting underrepresented groups with a focus on women, indigenous persons, persons with disabilities, visible minorities, 2SLGBTQI+ community, and older workers among others to help them overcome barriers to skills development and employment. Canada highlighted various initiatives and programs it was working on, including in collaboration with provinces and territories.

The UK outlined that ensuring workers’ rights while allowing businesses to grow is a priority for the UK. The UK explained that the Government is backing a number of Private Member’s Bills to address barriers to the labour market and to support people to stay at work. The package of Bills aims to enhance workers' rights to help balance both work responsibilities and family obligations, alongside other initiatives including re-training for older workers and increasing the national living wage.

Session on Trade and Environment

The UK began by sharing its approach to cooperation on Trade and Environment, which uses the same principles for Trade and Labour – working on cooperation activities that are tangible but effective and that would complement, not duplicate, ongoing work. The UK described that it has been using the TSD Committees to establish relationships and to exchange policy ideas on issues of mutual interest, highlighting work with Japan and Canada.

Canada acknowledged that there is a good level of cooperation with the UK happening in various fora. Canada highlighted some examples of cooperation activities under FTAs, notably with the European Union (EU) and acknowledged the importance of increasing ambition through these activities. Canada recounted it has had success with smaller, more targeted programming and that there had been success in promoting trade in green products and clean-tech, including fostering partnerships between companies that allow them to innovate more quickly. Canada also emphasised its openness to continue the conversation on shared priorities with the UK.

On Carbon Leakage, the UK stressed that it was strongly committed to working with international partners to create a common approach. The UK acknowledged that carbon leakage is an issue that needs to be addressed with a variety of mechanisms. The UK noted the launch of its exploratory consultation on carbon leakage measures, including a Carbon Border Adjustment Mechanism (CBAM) and Mandatory Product Standards (MPS), at the end of April 2023. The UK is also looking forward to collaborating with Canada on the Global Carbon Pricing challenge.

Canada shared that it has been considering the impacts of carbon leakage and for the past two years have been exploring a possible Canadian Border Carbon Adjustment (BCA) measure. In that regard they explained that they have been carrying out a robust assessment of the economic and environmental impacts of a BCA, including public and targeted consultations with Provinces and Territories and industries. Canada also noted that they have been assessing the potential impact of the EU’s announcement of a CBAM as well. They acknowledged that this is a very complex issue that will take time to address.

Next steps and agreed actions

The UK indicated an interest from its stakeholders in holding a Civil Society Forum later in 2023. Canada noted that it looks forward to receiving a formal proposal from the UK. Both the UK and Canada decided to look at how they can cooperate on areas of labour policy, such as knowledge sharing to advance mutual priorities, as well as a potential mapping exercise of all the ongoing cooperation between Canada and the UK on environmental issues.

Annex A – Lists of TSD Experts

List of the Panel of Experts under Article 23.10 of the TCA covering Trade and Labour matters

Non-national experts

• Kathleen Claussen
• Patrick Pearsall
• Penelope Ridings

Canada experts

• Kevin Banks
• Adelle Blackett
• Carol Nelder-Covari

UK experts

• Paul van der Heijden
• Jeffrey Vogt
• Simon Olleson

List of the Panel of Experts under Article 24.15 of the TCA covering Trade and Environment matters

Non-national experts

• James Bacchus
• David Unterhalter
• Ujal Bhatia

Canada experts

• Anne Daniel
• Elaine Feldman
• Matthew Kronby

UK experts

• Monica Feria-Tinta
• Jan Yves Remy
• Zachary Douglas