Canada, EU advance CETA modernization and launch digital trade talks

By Tahani Elghazaly
Published March 6, 2026

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Canada and the European Union signed a new package of measures in Toronto on Thursday, March 5, 2026, as part of efforts to modernize CETA, while formally opening negotiations for an EU-Canada Digital Trade Agreement. Officials framed the move as a way to strengthen resilience and diversify trade links beyond heavy reliance on the U.S. market.

In its post-meeting statement following the fifth CETA Joint Committee, the EU said both sides adopted an Interpretation on Investment to clarify key elements in CETA’s investment provisions, and signed a decision introducing expedited arbitration procedures aimed at making investment dispute settlement more accessible for small and medium-sized businesses.

The EU statement also highlighted sector progress on pharmaceuticals, noting technical work was completed to expand the scope of the GMP Protocol, with the next step being an amendment to include active pharmaceutical ingredients, intended to enable mutual recognition of inspections and reduce costs linked to duplicate checks.

On professional services, the EU pointed to the Mutual Recognition Agreement for Architects entering into application on December 18, 2025, and said both sides want to encourage broader regulator-to-regulator cooperation in services.

As for the digital negotiations, the EU said the future deal is designed to complement CETA with a forward-looking framework that improves legal certainty for businesses and strengthens consumer protection in digital transactions. Reuters reported the talks are expected to touch on data, digital services, cybersecurity cooperation, and emerging technologies.