Policy background The draft decisions to sign and then conclude a competition Agreement between the European Union and the Government of Canada (the Canada decisions)
The EU and Canada have cooperated in the area of competition policy enforcement since 1999 (pursuant to an existing cooperation agreement).
	The draft decisions concern the replacement of the existing EU-Canada competition enforcement cooperation arrangement, with a new agreement that includes the exchange of information gathered by their respective competition authorities during antitrust and merger investigations (the new Agreement). The Commission may share such information with Member States’ competition authorities (in the case of the UK, the Competition and Markets Authority (CMA)).
	The new Agreement in practice means that information obtained during competition enforcement investigations may be discussed and transferred between the European Commission and the Canadian Competition Bureau. The European Commission states that the absence of the possibility to exchange information has become a major impediment to effective cooperation as bilateral cooperation between the European Commission and the Canadian Competition Bureau has become deeper and more frequent. The ability to share information is intended to increase the ability of both organisations to conclude competition enforcement investigations efficiently.
	In cases where a UK company is involved in an investigation undertaken by both the European Commission and the Canadian Competition Bureau into the same merger or anticompetitive conduct, the new Agreement would mean that information provided by the UK company to one competition authority would not necessarily have to be provided again to the other party’s competition authority. Following the UK’s exit from the European Union, UK companies operating in the EU will still be subject to the jurisdiction of the European Commission in antitrust investigations and, where the thresholds are met, in merger investigations in the same way as for other non-EU companies operating in the EU. Information relating to UK companies operating in the EU would therefore still be transferable under the new Agreement.
	The draft decisions are based on Articles 103 and 352 of TFEU. They have been proposed by the European Commission and can be made by the Council acting unanimously after obtaining the consent of the European Parliament.
	The draft Council decisions to sign and conclude the new Agreement were deposited in Parliament on 6 July 2016. The Department for Business, Energy and Industrial Strategy submitted an explanatory memorandum covering the draft decisions on 12 August 2016. The documents were cleared by the European Union Committee of the House of Lords on 25 August 2016. The European Scrutiny Committee considered the documents at its meeting on 12 October 2016 and assessed them as politically important. The documents were not cleared from scrutiny. Further information was requested on whether the Government would seek to participate in the new Agreement after the UK withdraws from the EU and, if so, how it may be possible to secure its continuing application. The documents were drawn to the attention of the Business, Energy and Industrial Strategy Committee. The Minister for Small Business, Consumers, and Corporate Responsibility (Margot James MP) wrote to the Chair of the European Scrutiny Committee (Sir William Cash MP) on 24 October outlining the options for international cooperation on competition law enforcement once the UK leaves the EU. The European Scrutiny Committee considered the documents again on 14 December 2016 and assessed them as politically important. The documents were cleared from scrutiny and drawn to the attention of the BEIS Committee and the Treasury Committee.
	The text of the draft decisions is now settled and it is intended that the proposals are concluded in the Council as soon as possible.