EU Membership for Canada? (Don’t say I didn’t warn you)
Read the following and you'll dislike joining the EU - and me for making you read this...
As I’ve said to anyone who will listen, I sincerely believe that Canada has four clear and distinct options for the road ahead. They are as follows:
1. Status quo / do nothing
2. Become the 51st US state
3. Join the European Union
4. Help create a CANZUK strategic alliance
It is important to understand that this has nothing to do with internal measures – like building pipelines and energy corridors to tidewater, or dropping interprovincial trade barriers, or beefing up our military (which I touched on in a previous post). Regardless of the option one picks, what we do “in house” should be a given.
But as you already know, not all options are created equal.
The first option – the status quo – is the one option where Canadians of all political stripes and walks of life are in near unanimity. We all hate it. Whether willingly – or begrudgingly – we all admit that it’s not working and we wouldn’t be in this predicament if it was.
The second option of being annexed by the US is – by most current polls - rejected by upwards of 90 percent of Canadians. This means that if you are a 51st stater wanting to argue your case to a randomly sampled group of 100 Canadians in a local Legion hall, there will be 9 people cheering and applauding while the other 90 are chasing you out the front door and out to the parking lot. Social media being an anonymous and consequence-free zone gives those folks a false sense of security, where they will say their piece on Twitter/X or Facebook, but keep a low profile and keep quiet at their local Tim Horton’s.
I won’t belabour the fourth option – CANZUK – because if you read anything I’ve put out in the world, you’ll already know that this is my preferred path. It’s the one option that gives the best guarantee that Canadians remain maîtres chez nous – masters of our own house.
So that leaves the third option – that of joining the EU – which is the topic of this rather lengthy post.
One is led to believe that this is becoming a popular option. Some recent polls indicate that upwards of half of Canadians are open to it. Certainly, there is an increasing number of people on social media who are suggesting this option, including people in the EU. Now, I do not doubt their sincerity – either Canadians or Europeans who are floating this option. And, in some ways, it would close off the threat from the Trump White House – or at least complicate it to a degree that would make the annexation threat more untenable than it already is.
But despite the good will, it is still a bad idea.
With all due respect to the 50% of Canadians attracted to EU membership, I believe a very large number of them have not actually read the fine print or gamed out what full EU membership would look like. The following endeavours to do just that.
If you manage to get through it all, you should appreciate that this is an abbreviated summary. Yes – it could be even longer!
The italicized quotes in each section are taken verbatim from the European Commission, which you are free to review yourself at:
https://enlargement.ec.europa.eu/enlargement-policy/conditions-membership/chapters-acquis_en
The ‘acquis’ or law governing membership criteria is 35 chapters long, so I might suggest that you take a moment for a washroom break or fix yourself a cuppa before continuing past this point.
You’re back? Good – let’s get started!
Prologue - “Copenhagen Criteria”
The Treaty on European Union sets out the conditions (Article 49) and principles (Article 6(1)) to which any country wishing to become a member of the European Union (EU) must conform.
Certain criteria must be met for accession. These criteria (known as the Copenhagen criteria) were established by the Copenhagen European Council in 1993 and strengthened by the Madrid European Council in 1995.
They are:
stability of institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities;
a functioning market economy and the ability to cope with competitive pressure and market forces within the EU;
the ability to take on the obligations of membership, including the capacity to effectively implement the rules, standards and policies that make up the body of EU law (the ‘acquis’), and adherence to the aims of political, economic and monetary union.
So, with the first of the running commentary, the first bullet point is fine – after all, doesn’t that describe Canada already?
Bullet point 2 talks about a market economy (hey – we’re one of those), but with “the ability to cope with competitive pressure and market forces within the EU”. What does that mean? Well, we’ll get to that.
Number 3 says the quiet part out loud - “adherence to the aims of political, economic and monetary union.” But hey, maybe you think that’s some hyperbole. Okay. Well, after this little amuse-bouche, let’s cannonball into the deep end of the pool.
Chapter 1: Free Movement of Goods
“The principle of the free movement of goods implies that products must be traded freely from one part of the Union to another. In a number of sectors this general principle is complemented by a harmonised regulatory framework, following the “old approach” (imposing precise product specifications) or the “new approach” (imposing general product requirements). The harmonised European product legislation, which needs to be transposed, represents the largest part of the acquis under this chapter. In addition, sufficient administrative capacity is essential to notify restrictions on trade and to apply horizontal and procedural measures in areas such as standardisation, conformity assessment, accreditation, metrology and market surveillance.”
On the surface, this seems to be a relatively good thing. If Canada were subject to the acquis, that would achieve both full and unfettered free trade within Canada and with the rest of the EU. Given how much Canada’s GDP is suppressed by interprovincial trade barriers, one fell-swoop elimination of them would definitely be an economic plus.
But before we get too excited, consider the reference to “a harmonised regulatory framework” and “harmonised European product legislation… in areas such as standardisation, conformity assessment, accreditation, metrology and market surveillance.” What does that mean? Well, for one a lot of Section 92 of the Constitution is going to get invalidated, as well as some portions of Section 91…
Chapter 2: Free Movement of Workers
“The acquis under this chapter provides that EU citizens of one Member State have the right to work in another Member State. EU migrant workers must be treated in the same way as national workers in relation to working conditions, social and tax advantages. This acquis also includes a mechanism to coordinate national social security provisions for insured persons and their family members moving to another Member State.”
This is free movement. Those asking how this is different from CANZUK should take note that a CANZUK free movement treaty is likely to be an extension of the existing Trans-Tasman agreement between Australia and New Zealand. And while Trans-Tasman has similarities, it differs significantly in that it offers the respective parties options for placing certain provisos on that movement – including criminal records, pre-approved coverage of health insurance and other social programs, or national security. It’s also confined to the individual and not to the relatives of those seeking to move to the other jurisdiction. The EU version of this does not offer those provisos or checks and balances. It would, in essence, invalidate much of the work of the IRCC where it pertains to EU nationals – relegating it to a form processing service.
Chapter 3: Right of Establishment and freedom to provide services
“Member States must ensure that the right of establishment of EU national and legal persons in any Member State and the freedom to provide cross-border services is not hampered by national legislation, subject to the exceptions set out in the Treaty. The acquis also harmonises the rules concerning regulated professions to ensure the mutual recognition of qualifications and diplomas between Member States; for certain regulated professions a common minimum training curriculum must be followed in order to have the qualification automatically recognised in an EU Member State. As regards postal services, the acquis also aims at opening up the postal services sector to competition in a gradual and controlled way, within a regulatory framework which assures a universal service.”
Yes – can’t stop any of the 500 million folks in the EU from coming to Canada. To be clear, Ottawa would not be able to even use a ‘national security’ justification for preventing the movement. As for the post office, well – maybe Deutsche Post might do a better job at running our mail service, so I’ll concede on that one.
Chapter 4: Free movement of capital
“Member States must remove, with some exceptions, all restrictions on movement of capital both within the EU and between Member States and third countries. The acquis also includes rules concerning cross-border payments and the execution of transfer orders concerning securities. The directive on the fight against money laundering and terrorist financing requires banks and other economic operators, particularly when dealing in high-value items and with large cash transactions, to identify customers and report certain transactions. A key requirement to combat financial crime is the creation of effective administrative and enforcement capacity, including co-operation between supervisory, law enforcement and prosecutorial authorities.”
Okay – so free flow of capital is good insofar as it would help money flow into some key sectors of our economy, but it comes with the proviso that the RCMP and FINTRAC will need to be coordinated with Brussels. That means coordination of Canadian banking rules with the EU. While there may be those who had their bank accounts frozen over a particular matter a couple of years back who are agnostic about this, they could ask themselves if they trust bureaucrats on the other side of the Atlantic more than the one’s at the tip of the Rideau Canal.
Chapter 5: Public procurement
“The acquis on public procurement includes general principles of transparency, equal treatment, free competition and non-discrimination. In addition, specific EU rules apply to the coordination of the award of public contracts for works, services and supplies, for traditional contracting entities and for special sectors. The acquis also specifies rules on review procedures and the availability of remedies. Specialised implementing bodies are required.”
While competition is great, one should consider whether having German, Italian and French conglomerates treated as ‘domestic’ suppliers for Canadian and provincial government contracts would be a good idea. You may say “hell, yeah – why not”, which is a perfectly valid reaction – but would it still be a good idea if the bidding process was regulated by the EU? Hmmm…
Chapter 6: Company law
“The company law acquis includes rules on the formation, registration, merger and division of companies. In the area of financial reporting, the acquis specifies rules for the presentation of annual and consolidated accounts, including simplified rules for small- and medium-sized enterprises. The application of International Accounting Standards is mandatory for some public interest entities. In addition, the acquis specifies rules for the approval, professional integrity and independence of statutory audits.”
Well, there are a lot of law faculties and schools of business in Canadian universities that are going to have to change their curriculum and hire some professors who know their EU statutes. On the plus side, imagine all the tuition money they rake in as all those Bay Street lawyers and CPAs have to enrol in those “refresher” and recertification courses. Better hit those books and pull those all-nighters. So brew that pot of coffee and bonne chance!
Chapter 7: Intellectual Property law
“The acquis on intellectual property rights specifies harmonised rules for the legal protection of copyright and related rights. Specific provisions apply to the protection of databases, computer programs, semiconductor topographies, satellite broadcasting and cable retransmission. In the field of industrial property rights, the acquis sets out harmonised rules for the legal protection of trademarks and designs. Other specific provisions apply for biotechnological inventions, pharmaceuticals and plant protection products. The acquis also establishes a Community trademark and Community design. Finally, the acquis contains harmonised rules for the enforcement of both copyright and related rights as well as industrial property rights. Adequate implementing mechanisms are required, in particular effective enforcement capacity.”
I have nothing to add to this one, because if you lawyers and accountants took all those courses and recertification courses mentioned in the section above, you’re good to go!
Chapter 8: Competition policy
“The competition acquis covers both anti-trust and state aid control policies. It includes rules and procedures to fight anti-competitive behaviour by companies (restrictive agreements between undertakings and abuse of dominant position), to scrutinise mergers between undertakings, and to prevent governments from granting state aid which distorts competition in the internal market. Generally, the competition rules are directly applicable in the whole Union, and Member States must co-operate fully with the Commission in enforcing them.”
Well, this one should be fun for the telecom and banking sectors in Canada.
Chapter 9: Financial services
“The acquis in the field of financial services includes rules for the authorisation, operation and supervision of financial institutions in the areas of banking, insurance, supplementary pensions, investment services and securities markets. Financial institutions can operate across the EU in accordance with the ‘home country control’ principle either by establishing branches or by providing services on a cross-border basis.”
The idea of having branches of Santander and Banque Paribas opening in Weyburn, Saskatchewan or Meaford, Ontario may have a novelty or benefit in opening up competition – but having Scotiabank and BMO regulated from Brussels might take the bloom off the rose.
Chapter 10: Information society and media
“The acquis includes specific rules on electronic communications, on information society services, in particular electronic commerce and conditional access services, and on audio-visual services. In the field of electronic communications, the acquis aims to eliminate obstacles to the effective operation of the internal market in telecommunications services and networks, to promote competition and to safeguard consumer interests in the sector, including universal availability of modern services. As regards audio-visual policy, the acquis requires the legislative alignment with the Television without Frontiers Directive, which creates the conditions for the free movement of television broadcasts within the EU. The acquis aims to the establishment of a transparent, predictable and effective regulatory framework for public and private broadcasting in line with European standards. The acquis also requires the capacity to participate in the community programmes Media Plus and Media Training.”
Media Training? Ummm…anyhoo… well, goodbye CRTC – nice knowing you! Whether or not you get five bars on the way to Muskoka is anyone’s guess, but those CanCon rules are probably going to get tweaked – but don’t worry – so long as they are compliant with EU directives, you can listen to “The Wreck of the Edmund Fitzgerald” coming over your FM radio as you breeze down the 401. Curious to see whether those federal cheques to newspapers get grandfathered, but I’m trying to keep this as tight as possible so that’s for another day.
Chapter 11: Agriculture and rural development
“The agriculture chapter covers a large number of binding rules, many of which are directly applicable. The proper application of these rules and their effective enforcement and control by an efficient public administration are essential for the functioning of the common agricultural policy (CAP). Running the CAP requires the setting up of management and quality systems such as a paying agency and the integrated administration and control system (IACS), and the capacity to implement rural development measures. Member States must be able to apply the EU legislation on direct farm support schemes and to implement the common market organisations for various agricultural products.”
To quote Professor Farnsworth from Futurama “Good news, everyone!” And by that, I mean this will make supply management go the way of the dodo bird. But before you uncork that bottle of VQA sparkling wine (because champagne only comes from the Champagne region of France), you might want to look at what’s behind Door #2.
Supply management and the Common Agricultural Policy are technically the same in that they are attempts to stabilize farm incomes, but they do it in different ways. Supply management regulates the quantity of the commodity in the market. Restrict supply and you keep prices high, ergo farmers make more.
Or, you can say to hell with that, leave supply alone and just cut some fat cheques to farmers – which is exactly what the CAP does.
Well, just how fat are those cheques?
The 2023-2027 CAP is allocating €264 billion for income support and rural development. Now, you may be asking what’s that in dollars, whereby I would say “Silly, goose – what’s dollars? Around here, we deal in Euros!” But if you say “But what is it in Canadian dollars – like the ones my grandparents used to buy stuff in the beforetime?” I would say that works out to C$411,715,920,000.00 – or nearly half-a-trillion bucks spread over 4 years.
The CAP represented 24.6% of the entire EU budget in 2023. And before you swallow your tongue, know that in 1980, it was 73.2%
So, the good news is that your milk and cheese will be cheaper. Unfortunately, there will be the VAT that gets put on that milk and cheese in order to help pay for the CAP.
Kind of like that “free healthcare” that eats up more than half of your province’s tabled budget every year.
Chapter 12: Food safety, veterinary and phytosanitary policy
“This chapter covers detailed rules in the area of food safety. The general foodstuffs policy sets hygiene rules for foodstuff production. Furthermore, the acquis provides detailed rules in the veterinary field, which are essential for safeguarding animal health, animal welfare and safety of food of animal origin in the internal market. In the phytosanitary field, EU rules cover issues such as quality of seed, plant protection material, harmful organisms and animal nutrition.”
Just when you thought those big and fluffy CAP cheques you get to farm were going to just sit around the house gathering dust, trust our new overlords to find ways of helping you spend them!
EU membership would mean big changes in the agriculture industry. For one, the Canadian Food Inspection Agency would be tasked with enforcing EU standards – from meat inspection to whether or not GMO crops are allowed, to the use of hormones, and so on. To be fair, there is a lot of commonality between Canadian and European standards, but those commonalities owe to a shared perspective between Canada and the EU. There are cases where Ottawa and Brussels differ on measures and regulations, but as an EU member that does not matter – federal and provincial rules and enforcement would need to comply with the acquis and the measures that Brussels adopts.
Chapter 13: Fisheries
“The acquis on fisheries consists of regulations, which do not require transposition into national legislation. However, it requires the introduction of measures to prepare the administration and the operators for participation in the common fisheries policy, which covers market policy, resource and fleet management, inspection and control, structural actions and state aid control. In some cases, existing fisheries agreements and conventions with third countries or international organisations need to be adapted.”
Remember the ‘Turbot War’ between Canada and the EU in the 1990s? Remember those working in the east coast fishery who complained that Spanish and Portuguese fleets were coming into Canadian waters and depleting stocks? Well, the good news is that EU membership would have prevented this dust up. The bad news is that it would have done so by overruling us. In case you haven’t noticed, Canada is one country, while Spain and Portugal are two – and in the decision-making halls of Brussels, two is more than one. Furthermore, let’s again look at that turn of phrase: “…consists of regulations, which do not require transposition into national legislation…” and remind ourselves that it means any federal or provincial legislation would be moot and meaningless. EU Directives would decide matters.
Chapter 14: Transport policy
“EU transport legislation aims at improving the functioning of the internal market by promoting safe, efficient and environmentally sound and user-friendly transport services. The transport acquis covers the sectors of road transport, railways, inland waterways, combined transport, aviation, and maritime transport. It relates to technical and safety standards, security, social standards, state aid control and market liberalisation in the context of the internal transport market.”
Ottawa would still ‘technically’ oversee transport – things like NAVCanada and the like – but they wouldn’t make the rules. They would implement what Brussels decrees.
Chapter 15: Energy
“EU energy policy objectives include the improvement of competitiveness, security of energy supplies and the protection of the environment. The energy acquis consists of rules and policies, notably regarding competition and state aids (including in the coal sector), the internal energy market (opening up of the electricity and gas markets, promotion of renewable energy sources), energy efficiency, nuclear energy and nuclear safety and radiation protection.”
If you think the federal government has been hostile to pipelines over the last decade, just imagine the approval process evolving up to a European Parliament where a sizeable number of MEPs owe their seats to the kind of people who strip naked and superglue their foreheads to the Champs Elysee to protest the fact that someone, somewhere, burned a twig at a campsite.
Chapter 16: Taxation
“The acquis on taxation covers extensively the area of indirect taxation, namely value-added tax (VAT) and excise duties. It lays down the scope, definitions and principles of VAT. Excise duties on tobacco products, alcoholic beverages and energy products are also subject to EU legislation. As concerns direct taxation, the acquis covers some aspects of taxing income from savings of individuals and of corporate taxes. Furthermore, Member States are committed to complying with the principles of the Code of Conduct for Business Taxation, aimed at the elimination of harmful tax measures. Administrative co-operation and mutual assistance between Member States is aimed at ensuring a smooth functioning of the internal market as concerns taxation and provides tools to prevent intra-Community tax evasion and tax avoidance. Member States must ensure that the necessary implementing and enforcement capacities, including links to the relevant EU computerised taxation systems, are in place.”
None of this pesky ‘who is allowed to tax directly or indirectly” federal-provincial turf war stuff. Just have the EU come in and bigfoot it all.
Chapter 17: Economic and monetary policy
“The acquis in the area of economic and monetary policy contains specific rules requiring the independence of central banks in Member States, prohibiting direct financing of the public sector by the central banks and prohibiting privileged access of the public sector to financial institutions. Member States are expected to co-ordinate their economic policies and are subject to the Stability and Growth Pact on fiscal surveillance. New Member States are also committed to complying with the criteria laid down in the Treaty in order to be able to adopt the euro in due course after accession. Until then, they will participate in the Economic and Monetary Union as a Member State with a derogation from the use of the euro and shall treat their exchange rates as a matter of common concern.”
There will be those Canadians who argue that we do not have to ditch the dollar to join the EU. That is incorrect. Among the 27 member states of the EU, there is only one who has the legal authority to say no – and that is Denmark, who had that put in the treaty back in 1973. Of the other 26 member states, they fall into 2 categories – countries that adopted the Euro and countries expected to adopt the Euro when they meet the right criteria. But what does ‘right criteria’ actually mean? Well it means that the EU will have a say in both our fiscal and monetary policy to ensure it moves towards ‘compatibility’ with the Eurozone. The expectation is that once Canada’s fiscal and monetary policies and fundamentals are sufficiently aligned, out goes the dollar and in comes the Euro.
Toward that end, consider the last part of the quote, the expectation that “shall treat [our] exchange rates as a matter of common concern.” That is another way of saying that the Governor of the Bank of Canada will be required to balance Canadian domestic fundamentals with the policies of the European Central Bank (ECB).
Looking back at Empire Preference, the one thing Canada did not do was join the Sterling Area – where Commonwealth members pegged their currency to the British pound. Even in the midst of Smoot-Hawley, the Bennett government knew that pegging the Canadian dollar to the pound would finish the job that Washington’s tariffs started. The already severe drop in Canada – US trade would have been terminal – and with more that 60% of our exports going to the US at that time, it would have hammered the Canadian economy brutally. For their part, the British did not push back on this for two reasons: one, that they did not wish to alienate Canada politically; and two, maintaining the status quo allowed a flow of US dollars into the Empire Preference bloc, giving it the ability to maintain modest reserves even in the face of a trade war.
In a scenario where we are pegged to the Euro and where the Bank of Canada is having to give equal weight to ECB guidance as it does to the situation on the ground, the distortions to our US trade – now over 70% of our exports, cannot be overstated. And again, as a EU member, you are one of nearly 30 jurisdictions. If the majority favour measures harmful to your domestic situation, you are left to deal with the consequences.
One can argue whether this is likely, but Britain never joined the Euro – but it did ascribe to the Exchange Rate Mechanism (ERM) that pegged it to the EU currency. If you’re unfamiliar with it, it created an economic crisis in the UK before it was abandoned, with the only winner being George Soros, who made a fortune shorting the British pound.
Chapter 18: Statistics
“The acquis in the field of statistics requires the existence of a statistical infrastructure based on principles such as impartiality, reliability, transparency, confidentiality of individual data and dissemination of official statistics. National statistical institutes act as reference and anchor points for the methodology, production and dissemination of statistical information. The acquis covers methodology, classifications and procedures for data collection in various areas such as macro-economic and price statistics, demographic and social statistics, regional statistics, and statistics on business, transport, external trade, agriculture, environment, and science and technology. No transposition into national legislation is needed as the majority of the acquis takes the form of regulations.”
Translation from bureaucratese: Without the need for legislation to be passed in Parliament, Statistics Canada would fall under de facto EU management, and the good folks in Tunney’s pasture in Ottawa will ensure that the data they collect and interpret will be done according to directives from Brussels.
Chapter 19: Social policy and employment
“The acquis in the social field includes minimum standards in the areas of labour law, equality, health and safety at work and anti-discrimination. The Member States participate in social dialogue at European level and in EU policy processes in the areas of employment policy, social inclusion and social protection. The European Social Fund is the main financial tool through which the EU supports the implementation of its employment strategy and contributes to social inclusion efforts (implementation rules are covered under Chapter 22, which deals with all structural instruments).”
This chapter essentially sets out the goal of having Employment Insurance and labour laws – federal and provincial – run to EU standards. In addition, rather than the current practice of directing funding to economic development – regional or sectoral – to parts of a province or to the country, the money would be sent to Brussels and divvied accordingly. This could mean that programs like FedNor disappear, potentially replaced by an EU equivalent. On the positive side, one could look forward to funding from the EU to enhance what used to only come from Ottawa and the provinces. Then again, in 2024 only 10 of the 27 EU member states were net contributors. That means while you dream of money from German and French taxpayers to help subsidize grants to expand your small business, the more likely scenario is that Alberta and Ontario taxpayers will be chipping in to support the opening of shops in Italy, Spain and Greece.
Chapter 20: Enterprise and Industrial policy
“EU industrial policy seeks to promote industrial strategies enhancing competitiveness by speeding up adjustment to structural change, encouraging an environment favourable to business creation and growth throughout the EU as well as domestic and foreign investments. It also aims to improve the overall business environment in which small and medium sized enterprises (SMEs) operate. It involves privatisation and restructuring (see also Chapter 8 – Competition policy). EU industrial policy mainly consists of policy principles and industrial policy communications. EU consultation forums and Community programmes, as well as communications, recommendations and exchanges of best practices relating to SMEs aim to improve the formulation and coordination of enterprise policy across the internal market on the basis of a common definition of SMEs. The implementation of enterprise and industrial policy requires adequate administrative capacity at the national, regional and local level.”
Centrally planned economy is what I’m hearing…
Chapter 21: Trans-European networks
“This chapter covers the Trans-European Networks policy in the areas of transport, telecommunications and energy infrastructures, including the Community guidelines on the development of the Trans-European Networks and the support measures for the development of projects of common interest. The establishment and development of Trans-European Networks and the promotion of proper interconnection and interoperability of national networks aim to take full advantage of the internal market and to contribute to economic growth and the creation of employment in the European Union.”
In theory, this could be good – but the devil’s in the details. The question would be whether the majority of EU members deem Alberta’s oil sands to be a solution – or a problem. Despite more recent moves to secure supply from other markets and away from dependency on Russia, we should not forget that dependence on Russia happened because of EU policies. The strong presence of parties in the EU Parliament who push for environmental policies to the left of Greta Thunberg would not likely see any development – existing or potential – of the Athabasca oil deposits as acceptable. As separate and sovereign entities, Canada and the EU can “agree to disagree.” As part of the EU, Canada would not have that latitude.
Chapter 22: Regional policy and coordination of structural instruments
“The acquis under this chapter consists mostly of framework and implementing regulations, which do not require transposition into national legislation. They define the rules for drawing up, approving and implementing Structural Funds and Cohesion Fund programmes reflecting each country’s territorial organisation. These programmes are negotiated and agreed with the Commission, but implementation is the responsibility of the Member States. Member States must respect EU legislation in general, for example in the areas of public procurement, competition and environment, when selecting and implementing projects. Member States must have an institutional framework in place and adequate administrative capacity to ensure programming, implementation, monitoring and evaluation in a sound and cost-effective manner from the point of view of management and financial control.”
Again – no requirement for Ottawa or the provinces to pass laws, but one that they implement laws from the EU Parliament. In this case, it would be carrying out the administrative duties associated with programs. This means federal and provincial public servants awarding money based on EU criteria, and monitoring the use of said funds to ensure they conform to the policies and accounting practices Brussels sets out.
One can only imagine what it would be like to be a Minister of the Crown who has 2,000 departmental employees doing work, spending money and filing reports and you’re not in any way part of the reporting chain.
Chapter 23: Judiciary and fundamental rights
“EU policies in the area of judiciary and fundamental rights aim to maintain and further develop the Union as an area of freedom, security and justice. The establishment of an independent and efficient judiciary is of paramount importance. Impartiality, integrity and a high standard of adjudication by the courts are essential for safeguarding the rule of law. This requires a firm commitment to eliminating external influences over the judiciary and to devoting adequate financial resources and training. Legal guarantees for fair trial procedures must be in place. Equally, Member States must fight corruption effectively, as it represents a threat to the stability of democratic institutions and the rule of law. A solid legal framework and reliable institutions are required to underpin a coherent policy of prevention and deterrence of corruption. Member States must ensure respect for fundamental rights and EU citizens’ rights, as guaranteed by the acquis and by the Fundamental Rights Charter.”
So, riddle me this – does the European Court of Justice become an appeals court higher than the Supreme Court of Canada? Does the Charter of Fundamental Rights of the European Union overrule the Canadian Charter of Rights and Freedoms? Does Section 33 of the Canadian Constitution get neutered? The question is not whether these issues get raised, but how soon. My guess is five minutes after the signing treaty and the raising of the Maple Leaf outside the EU Parliament while the band plays ‘Ode to Joy.”
Chapter 24: Justice, freedom and security
“EU policies aim to maintain and further develop the Union as an area of freedom, security and justice. On issues such as border control, visas, external migration, asylum, police cooperation, the fight against organised crime and against terrorism, cooperation in the field of drugs, customs cooperation and judicial cooperation in criminal and civil matters, Member States need to be properly equipped to adequately implement the growing framework of common rules. Above all, this requires a strong and well-integrated administrative capacity within the law enforcement agencies and other relevant bodies, which must attain the necessary standards. A professional, reliable and efficient police organisation is of paramount importance. The most detailed part of the EU’s policies on justice, freedom and security is the Schengen acquis, which entails the lifting of internal border controls in the EU. However, for the new Member States substantial parts of the Schengen acquis are implemented following a separate Council Decision to be taken after accession.”
Good news – if the Americans are upset about the “porous border”, we can tell them to take it up with Brussels. After all, CBSA, the RCMP and the various provincial forces are going to be taking their cues from them anyway.
But cheer up – it’s not all bad. I mean we’ll eliminate borders as per Schengen – which covers Saint Pierre et Miquelon and Hans Island…
Chapter 25: Science and research
“The acquis in the field of science and research does not require transposition of EU rules into the national legal order. Implementation capacity relates to the existence of the necessary conditions for effective participation in the EU’s Framework Programmes. In order to ensure the full and successful association with the Framework Programmes, Member States need to ensure the necessary implementing capacities in the field of research and technological development including adequate staffing.”
Again, “…does not require transposition of EU rules into the national legal order…” is another way of saying that what passes the EU Parliament overrules anything Ottawa and the provinces pass.
Chapter 26: Education and culture
“The areas of education and training, youth, sport and culture are primarily the competence of the EU Member States. In the field of education, training, sport and youth, besides a Directive on education of the children of migrant workers and the judgments of the European Court of Justice on cases related to non-discrimination between nationals of an EU Member State and other EU nationals, the acquis mainly consists of Council Recommendations in a number of areas related to school, vocational, higher and adult education, youth volunteering and mobility, numerous Council Conclusions and Resolutions.
The governance framework for cooperation is set by a Council Resolution on a European Education Area, with regular joint reporting of the Commission and the Council. A similar framework is set by a Council Resolution on the EU Youth Strategy, also with regular reporting. The frameworks set common objectives, monitor progress through benchmarks and indicators, and the Commission facilitates various exchanges of experiences and peer learning.
As regards cultural policy, Member States need to uphold the principles enshrined in Article 167 of the TFEU and, in particular, ensure that their international commitments allow for the development and implementation of policies and instruments aiming at preserving and promoting cultural diversity. In accordance with these principles, the UNESCO Convention on the Protection and Promotion of the Diversity of Cultural Expressions, ratified by the EU (and [country]), is a major element of the acquis in the field of culture. Following the 2007 European Agenda for Culture, the Commission adopted the New European Agenda for Culture in 2018 to take into account the evolution of the cultural sector. The New Agenda provides the framework for cooperation on culture at the EU level.”
EU Sport Policy aims to create a European dimension in sport. Priorities for Member States and the Commission are defined in EU Sport Working Plans. The current Plan is valid from 2021 to 2024 and addresses action in three priority areas: protect integrity and values in sport; Socio-economic and environmental dimensions of sport and promotion of participation in sport and health-enhancing physical activity.”
Aside from overriding S.92, which gives the provinces jurisdiction over education, as well as potentially opening up a hornet’s nest when it comes to language laws in Quebec or the status of individual Indigenous nations within the country as a whole, this acquis is a bit like a room full of mousetraps, and an extremely narrow path to navigate whilst wearing only socks. But hey – no tariffs on French wine!
Chapter 27: Environment
“EU environment policy aims to promote sustainable development and protect the environment for present and future generations. It is based on preventive action, the polluter pays principle, fighting environmental damage at source, shared responsibility and the integration of environmental protection into other EU policies. The acquis comprises over 200 major legal acts covering horizontal legislation, water and air quality, waste management, nature protection, industrial pollution control and risk management, chemicals and genetically modified organisms (GMOs), noise and forestry. Compliance with the acquis requires significant investment. A strong and well-equipped administration at national and local level is imperative for the application and enforcement of the environment acquis.”
If you’re Steven Guilbeault, this is probably your idea of erotic fan fiction. But to the rest of us, it’s a recipe for disaster. You see, Canada’s economy may have a lot of advanced capabilities and high-end manufacturing capacity, but we still earn a significant amount of coin as “hewers of wood and drawers of water.” The weighting of Canada’s economic output to raw resources puts it in contrast to a number of EU member states.
I’m also old enough to remember a time when a Canadian government whose political supporters lived in a region that benefitted from cheap commodity prices pursued said policies. It was called the National Energy Policy and despite being mostly an Ontarian, I was a westerner during the NEP’s run, which hit our town of Dawson Creek, BC on a scale I have not seen since – with the exception of the 2008 financial crisis and what some parts of the US went through.
Albertans, British Columbians and Saskatchewanians may resent Ontarians and Quebecers for a lot of past political and economic decisions they felt were harmful to their interests, but adding the French, the Dutch, the Spanish, Germans and Italians to the discussion is not likely to improve matters for folks on the Prairies.
Chapter 28: Consumer and health protection
“The consumer protection acquis covers the safety of consumer goods as well as the protection of the economic interests of consumers in a number of specific sectors. Member States need to transpose the acquis into national law and to put in place independent administrative structures and enforcement powers which allow for effective market surveillance and enforcement of the acquis. Appropriate judicial and out-of-court dispute resolution mechanisms as well as consumer information and education and a role for consumer organisations should be ensured as well. In addition, this chapter covers specific binding rules in the area of public health.”
Again – federal and provincial bureaucrats tasked with carrying out EU directives, including the labelling of food and consumer goods, where those directives are decided by a body where Canada is outnumbered 27 to 1.
Chapter 29: Customs union
“The customs union acquis consists almost exclusively of legislation which is directly binding on the Member States. It includes the EU Customs Code and its implementing provisions, the combined nomenclature, common customs tariff and provisions on tariff classification, customs duty relief, duty suspensions and certain tariff quotas, and other provisions such as those on customs control of counterfeit and pirated goods, drugs precursors, export of cultural goods as well as on mutual administrative assistance in customs matters and transit. Member States must ensure that the necessary implementing and enforcement capacities, including links to the relevant EU computerised customs systems, are in place. The customs services must also ensure adequate capacities to implement and enforce special rules laid down in related areas of the acquis such as external trade.”
Yes – technically free trade with 500 million Europeans, but you hand over the keys to the kingdom. Want to know why the Brits had to hire a bunch of Australians and Canadians to work in their International Trade Department, which they hired a New Zealand bureaucrat to run? Because nobody in the entirety of the British Public Service had ever negotiated a trade treaty. Britain handed that function over to Brussels in 1973 and did nothing in that regard until the department was re-established in 2016. Rough math says that a young Whitehall staffer with their newly minted PPE degree from Oxford hired the day Britain got out of the trade treaty business would have been a minimum of 66 years old when it got back into it.
But what about existing deals? What happens to all those free trade deals Canada has with other countries? Well, there are two ways this can go.
On one hand, it can go pretty much like the British experience in 1973 when they were compelled to end their preferred trade relations with a number of Commonwealth economies. What happened with New Zealand is of particular note.
On the other hand, you can have the French experience. You see, the currency used by a number of African countries – the CFA Franc – was backstopped by the Bank of France. Like many Commonwealth members, France carried on close relations with former colonies, and the CFA Franc was an example. But when the French ditched the Franc for the Euro and the Bank of France was absorbed into the European Central Bank, the ECB grandfathered in the French arrangement.
So yes, the EU decided to absorb French colonial obligations on one hand yet forced the UK to tell the Kiwis and the Aussies to pound salt on the other.
So, what Canada would be forced to do or not do is anyone’s guess.
Chapter 30: External relations
“The acquis in this field consists mainly of directly binding EU legislation which does not require transposition into national law. This EU legislation results from the EU’s multilateral and bilateral commercial commitments, as well as from a number of autonomous preferential trade measures. In the area of humanitarian aid and development policy, Member States need to comply with EU legislation and international commitments and ensure the capacity to participate in the EU’s development and humanitarian policies. Applicant countries are required to progressively align its policies towards third countries and its positions within international organisations with the policies and positions adopted by the Union and its Member States.”
So, beginning with the familiar “we don’t need no stinking Canadian laws to make this happen yadda yadda yadda” we get into taking all those programs from Global Affairs and run them through the EU’s rubrik – trade with who they trade with, don’t trade with who they don’t trade with, send a bag of Alberta wheat to the Maghreb with a nice European Union flag on it so they know exactly who to thank, and hope like hell some assembly line in Scarborough or Mississauga is competing to send tractors and combines to Tanzania with a plant outside Dusseldorf or Turin.
Chapter 31: Foreign, security and defence policy
“The common foreign and security policy (CFSP) and the European security and defence policy (ESDP) are based on legal acts, including legally binding international agreements, and on political documents. The acquis consists of political declarations, actions and agreements. Member States must be able to conduct political dialogue in the framework of CFSP, to align with EU statements, to take part in EU actions and to apply agreed sanctions and restrictive measures. Applicant countries are required to progressively align with EU statements, and to apply sanctions and restrictive measures when and where required.”
In other words, when it comes to sanctions and other measures against countries and organizations, Brussels says jump and we say ‘how high?’
Chapter 32: Financial control
“The acquis under this chapter relates to the adoption internationally recognised frameworks and standards, as well as EU good practice, on public internal financial control (PIFC), based upon the principle of decentralised managerial accountability. PIFC should apply across the entire public sector, and include the internal control of financial management of both national and EU funds. In particular, the acquis requires the existence of effective and transparent management systems, including accountability arrangements for the achievement of objectives; a functionally independent internal audit; and relevant organisational structures, including central co-ordination of PIFC development across the public sector. This chapter also requires an institutionally, operationally and financially independent external audit institution that implements its audit mandate in line with the standards of the International Organisation of Supreme Audit Institutions (INTOSAI) and reports to the parliament on the use of public sector resources. In addition, this chapter also covers the protection of the EU’s financial interests against fraud in the management of EU funds and the protection of the euro against counterfeiting.”
So, here you have functions of the Bank of Canada, the Mint, Canada Revenue Agency and a number of provincial agencies and regulatory bodies – from the good folks at the OSC who oversee the Toronto Stock Exchange, to your friendly neighbourhood accountant who helps you file your taxes, to the person at your local bank branch who helps you set up an RRSP. All will need to conform to EU standards.
Chapter 33: Financial and budgetary provisions
“This chapter covers the rules concerning the financial resources necessary for the funding of the EU budget (‘own resources’). These resources are made up mainly from contributions from Member States based on traditional own resources from customs and agricultural duties and sugar levies; a resource based on value-added tax; and a resource based on the level of gross national income. Member States must have appropriate administrative capacity to adequately co-ordinate and ensure the correct calculation, collection, payment and control of own resources. The acquis in this area is directly binding and does not require transposition into national law.”
Again with the “no national law required” stuff, but now we are looking at the GST - or HST if you’re in an affected province.
Chapter 34: Institutions
“This chapter covers the institutional and procedural rules of the EU. When a country joins the EU, adaptations need to be made to these rules to ensure this country's equal representation in EU institutions (European Parliament, Council, Commission, Court of Justice) and other bodies and the good functioning of decision-making procedures (such as voting rights, official languages and other procedural rules) as well as elections to the European Parliament. EU rules in this chapter do not affect the internal organisation of a Member State, but acceding countries need to ensure that they are able to participate fully in EU decision-making by setting up the necessary bodies and mechanisms at home and by electing or appointing well-prepared representatives to the EU institutions. After concluding the accession negotiations, specific rules for the interim period until accession ensure a smooth integration of the country into EU structures: an information and consultation procedure is put in place and, once the Accession Treaty is signed, the acceding country is granted active observer status in the European Parliament and Council as well as in Commission committees.”
This is the part where we talk about superimposing another level of government on Canada – local, provincial, federal and European. Not much more to say about that. Res ipsa loquitur.
Chapter 35: Other issues
“This chapter includes miscellaneous issues which come up during the negotiations but which are not covered under any other negotiating chapter. No such issues have been identified for the moment. Chapter 35 is dealt with at the end of the negotiating process.”
This may be the very best part because it presumes that there is something left over that has not already been integrated, merged or subsumed by the preceding 34 chapters.
Epilogue
So – there you have it. When 50 percent of Canadians say they are open to EU membership, THIS is what they are saying they’re on board for. I’m going to go out on a limb and say that our fellow citizens who are keen to this are both scared of an American takeover and have not done any research whatsoever on the consequences of such a choice.
But, if we do go the EU route, you can look on the bright side – we negotiated a free trade treaty with them in 2017 and 10 member states still haven’t formally implemented it. At that rate, full EU membership will be a great benefit to your grandchildren.
Cue “Ode to Joy” as I bid adieu and soak my sore hands in some warm water and Epsom salts…