Canada-EU pact to focus on specialized labour mobility, not free movement

OTTAWA · Negotiations for a new transatlantic pact between Canada and the European Union do not include a full free labour movement, Canada's ambassador to the EU said. Jonathan Wilkinson said the labour discussions ahead of this week's Canada-EU summit in Montreal are focusing on "specialized areas" where employers can benefit from a shared labour pool. He said any measures to ease movement for workers and students must be approached thoughtfully. The new agreement is also expected to cover critical minerals and energy cooperation.

"We're not talking about free movement of labour between Europe and Canada. But what we are talking about is in some specialized areas, it may be actually interesting and useful for both countries to have the ability to tap into labour pools," Wilkinson told The Canadian Press. The ambassador did not cite specific sectors but pointed to existing work on mutual accreditation for architects as an example. He said future decisions on labour mobility would be focused on areas of "mutual benefit."

Canada has also discussed joining Erasmus+, the EU's student exchange program. The exact nature of the new pact has been unclear, with European Commission President Ursula von der Leyen suggesting in September it could make Canada an "associate" member of the bloc. Canadian officials have downplayed that term, and Prime Minister Mark Carney has called it an "alliance of the future." This week's summit coincides with the 10th anniversary of the signing of the Canada-European Union Comprehensive Economic and Trade Agreement, or CETA.

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Nine EU members have not yet ratified CETA. Wilkinson said he has spoken with all 27 of his EU counterparts and sees momentum to get more countries behind the trade deal. "I think there are a number of countries that will be moving in that direction over the coming months. So that's a process that will go along with the rest of this deepening of the relationship," he said. The political landscape in Europe remains dynamic, with French far-right leader Marine Le Pen currently leading polls to succeed President Emmanuel Macron this spring.

Wilkinson addressed the potential for political change, saying the EU is a bigger project than any one government. "I think in France, it's a very important debate that they are having. And I think that if in fact the government were to change, people will have to take stock of that," he said. "But I do think that the European Union is a much bigger project than any one government in any one country. And I have a lot of confidence that Europeans will find their way through this and be just fine."

Energy and critical minerals will play a crucial role in the enhanced partnership, Wilkinson said. "We're looking at ... how can we, for example, encourage significant additional European investment in Canadian minerals projects. We're talking about how can we think about things like stockpiling together so that we actually can help to stabilize the market," he said. The European Investment Bank applied this month for an exemption from Canadian foreign banking rules to operate in Canada as part of a critical minerals agreement.

Both Canada and the EU are looking to build more infrastructure to refine and ship critical minerals and reduce reliance on China. "That's not a dependency that's good for Canada. That's not a dependency good for the European Union. So we are looking at that," Wilkinson said. The Canada-EU summit is scheduled for later this week in Montreal.

With files from The Canadian Press, The Globe and Mail and BNN Bloomberg