By: Mark Camilleri

If Brexit has demonstrated one thing, it is that the European Union matters.  It matters a great deal.  

With a market of over 500 million people, the EU is – and will remain – a formidable economic and political force.  Underpinning this strength is the EU Single Market.  The rules adopted in respect of the Single Market often become the dominant standards in many industries, and even businesses operating outside the EU are increasingly required to conform to EU rules and requirements. 

Brussels is the home of the key institutions and rule-makers of the EU, all of which play a central role in promoting, sustaining and protecting its Single Market.  It is the place where many of the issues affecting the EU are defined, its agenda is set and policy options are presented, debated and decided.  It has been estimated that around 80 per cent of the rules directly affecting the lives of EU citizens are initiated in Brussels.  

Given the importance of Brussels from a policy, legislative and regulatory perspective, Canadian businesses, like any other business seeking to do business in, or with, the EU should pay much more attention to the workings of its capital.  Many Canadian companies in Europe, however, focus their attention almost exclusively on the individual EU states or regions where they do business.  With respect, this approach is flawed and needs to be complemented with a Brussels-specific strategy.

Businesses must have eyes, ears and voices in Brussels in order to protect and promote their investment and interests, and to take advantage of the opportunities the EU offers.  Contrary to what some say, rules from Brussels are well considered, the outcome of a process that takes a great deal of time and debate, not just in the corridors of power, but in conferences, roundtable discussions and informal discussions throughout the city.

With the implementation of the Canada-EU Comprehensive and Economic Trade Agreement (CETA), Canadian businesses have a unique advantage in terms of formal contribution to the EU decision-making process compared with other non-EU countries (including the UK following Brexit). Among other things, CETA gives Canadians an opportunity to comment early in the EU decision-making process to help ensure that free trade is, indeed, free.  This is an opportunity that Canadian businesses should not overlook or squander.  

Yet perhaps even more important than the formal structures of CETA are the informal opportunities for Canadian businesses to understand and influence policy discussions in Brussels through more regular engagement with the “Brussels bubble” (as the Brussels based EU political and regulatory ecosystem is referred to).   

Engaging with Brussels does not require an extensive budget or permanent staff. It does, however, require a regular and strategic presence.

For Canadians and Europeans alike, the EU is complex.  But complexity should not be a reason to ignore it.  In order to understand the EU and manage its risks and opportunities, businesses must understand and engage with the EU, and for this, there is no substitution than being in Brussels.

^* A slightly different version of this article appeared in the Canada-United Kingdom Chamber of Commerce 2019 Summer Newsletter (6 August 2019)