Decision

8 March 2022: summary of discussion of the first UK-Canada Trade and Sustainable Development Sub-Committee

Updated 10 May 2024

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

London and Ottawa (via video conference), 8 March 2022

The UK and Canada held the first TSD Sub-Committee under the Trade Continuity Agreement (TCA) on 8 March 2022. This was a collaborative and positive exchange, with officials from both Parties discussing a range of TSD implementation issues and initiating areas of cooperation across the TSD matters. Both Parties took actions away and look forward to meeting again at the second TSD Sub-Committee next year and engage informally before this.

1. Introductions

The meeting agenda was adopted (Annex A) and both Parties agreed to adopt and adhere to a set of principles ahead of agreeing and adopting the overarching Joint Committee’s Rules of Procedure once these are established.

2. Domestic and international priorities on environment

The Parties provided updates on how they are implementing the environment and climate provisions under Chapter 24 of the TCA.

Canada presented on their overall approach to trade and environment implementation, sharing their 3 priorities for this work going forward: climate change, biodiversity and plastics. Canada outlined their commitments to reduce emissions, helping industries and sectors through their emissions reduction plan to meet 2030 emissions targets in line with their net zero objective in 2050. On biodiversity, Canada outlined their plan to preserve and protect 25% of land and oceans by 2030. On plastics, Canada confirmed their commitment to reach zero plastic waste by 2030, with plans in place to prohibit 6 categories of single use plastic.

Canada provided an update on their carbon pricing policy and confirmed that they are continuing to increase carbon pricing through to 2030. Canada is also currently reviewing the standards it uses to assess provincial systems, also known as the federal ‘benchmark’, which will strengthen their national carbon pricing system. Canada also shared that they are exploring carbon adjustment border mechanisms and indicated that they are interested in working with the UK on this area going forward.

The UK presented on their approach to implementing environmental policies, outlining policies with respect to multilateral environmental agreements and illegal wildlife trade, sustainable management of forests and trade in timber products, trade and sustainable use of fisheries resources and sustainable aquaculture.

On climate, the UK outlined their approach to tackle climate change by reducing UK greenhouse gas emissions to net zero by 2050, boosting low carbon sectors and accelerating international climate action through their net zero strategy. This included information on the UK’s plans to phase out coal, the UK’s co-chairing of the Powering Past Coal Alliance and the launch of the Breakthrough Agenda at COP26. The UK also shared their ambitious system of carbon pricing (their Emissions Trading Scheme), which places a price on carbon in energy intensive industries, such as power and aviation sectors, and welcomed further discussions on this with Canada.

The Parties will seek to develop cooperation on carbon pricing, carbon leakage and clean technology/environmental goods and services within the next year and ahead of the second TSD Sub-Committee. The Parties will exchange contact points to continue these discussions.

3. Domestic and international priorities on labour

The UK outlined the devolution settlement in relation to employment policy and the responsibilities of the UK government and devolved administrations. The UK updated Canada on their recent ratification of ILO C190 (Violence and Harassment) at a ceremony at the ILO held on 7 March and confirmed implementation of the Convention through the UK’s existing legal framework to protect against violence and harassment in the workplace. The UK updated on their approach to protecting workers in the gig/platform economy, including details of employment status, and the recent reforms which have been implemented to protect vulnerable workers.

The UK gave an overview of their approach to eradicate all forms of forced labour from global supply chains, following on from the G7 Trade Ministers statement on forced labour. The UK expressed its commitment to ensuring that businesses are not unfairly disadvantaged for seeking to eradicate forced labour from their supply chains.

Canada informed the UK of their approach to implementing the Trade and Labour Chapters of free trade agreements (FTAs), including detailing positive projects in countries such as Mexico, Peru and Colombia. Canada also updated on how they monitor compliance of partner countries and provided information on plans under consideration to eradicate forced labour in supply.

Canada congratulated the UK on their recent ratification of ILO C190 and updated the UK on their own progress with respect to this. Canada provided an update their approach to the gig economy, explaining current stakeholder engagement in the process to develop protection for gig workers.

Both Parties will continue to share information on the protections for workers in the gig economy.

4. TCA implementation

The UK outlined their approach to establishing the UK Domestic Advisory Group (DAG) to serve the TCA, indicating the expectation that this group will be established in mid-2022. Canada expressed support for the UK’s approach and expressed their intention not to establish a DAG for the TCA, indicating that they will instead draw on existing stakeholder and consultation processes.

The Parties will continue discussions on the civil society engagement aspects of the agreement at an informal meeting in May 2022, with a view to confirming next steps in these areas.

The Parties recognised the need to establish a Panel of Experts, as outlined in Article 24.15 of the TCA, and discussed how to implement these mechanisms.

The Parties will begin exchanging names for the Panel of Experts list within the coming months.

5. Annex A – meeting agenda

1. Greetings and opening remarks
2. Domestic and international priorities on environment
3. Domestic and international priorities on labour
4. TCA implementation
5. Closing remarks