Source: EURLEX
Language: en
Format: md

**Council of the**
**European Union**

**Interinstitutional Files:**

**2024/0037 (NLE)**
**2024/0038 (NLE)**

**Brussels, 7 June 2024**
**(OR. en)**

**7711/24**

**RECH 124**

**COTRA 24**

**LEGISLATIVE ACTS AND OTHER INSTRUMENTS**

Subject: Agreement between the European Union, of the one part, and Canada, of the
other part, on the participation of Canada in Union programmes

7711/24 KAD/NT/di
# COMPET.2  EN

AGREEMENT

BETWEEN THE EUROPEAN UNION, OF THE ONE PART,

AND CANADA, OF THE OTHER PART,

ON THE PARTICIPATION OF CANADA

IN UNION PROGRAMMES

EU/CA/en

The European Union (hereinafter referred to as "the Union"),

of the one part,

and

Canada,

of the other part,

hereinafter jointly referred to as "the Parties",

WISHING to establish a lasting framework for cooperation between the Parties with clear

conditions for the participation of Canada in Union programmes or activities as well as a

mechanism facilitating the establishment of such participation in individual Union programmes or

activities;

CONSIDERING the common goals, values, and strong links of the Parties, established in the past

through the Comprehensive Economic and Trade Agreement (CETA) between Canada, of the one

part, and the European Union and its Member States, of the other part, done at Brussels

on 30 October 2016, the Strategic Partnership Agreement between the European Union and its

Member States, of the one part, and Canada, of the other part, done at Brussels on 30 October 2016,

and the Agreement for Scientific and Technological Cooperation between the European Community

and Canada, done at Halifax on 17 June 1995, as amended, and recognising the common desire of

the Parties to further develop, strengthen, stimulate, and deepen their relations and cooperation

therein;

EU/CA/en 1

RECOGNISING the key importance of the shared fundamental values and principles underpinning

the international cooperation between the Parties in research and innovation, such as ethics and

integrity in research, gender equality, and equal opportunities, and the shared objective of the

Parties to foster and facilitate the cooperation between organisations in the field of research and

innovation, including universities, and the exchange of best practices and attractive research

careers, facilitate cross-border and inter-sectoral mobility of researchers, foster free movement of

scientific knowledge and innovation, promote respect for academic freedom and freedom of

scientific research, and support science education and communication activities;

ACKNOWLEDGING the intention of the Parties to mutually cooperate and contribute to research

and innovation activities and the Union missions aimed at supporting and strengthening research

capacities in order to face global challenges as well as to deepen their respective industrial

competitiveness, and, in turn, to achieve a transformative and systemic impact for their societies in

support of the United Nations (UN) Sustainable Development Goals, which are beneficial for both

Parties;

CONSIDERING the Union's efforts to lead the response to global challenges by joining forces with

its international partners to address the global challenges in line with the plan of action for people,

planet and prosperity in the Resolution of the UN General Assembly A/RES/70/1

of 25 September 2015 entitled "Transforming our World: the 2030 Agenda for Sustainable

Development", and acknowledging that research and innovation are key drivers and essential tools

for innovation-led sustainable growth, for economic competitiveness and attractiveness;

WHEREAS Canada and the Union are strategic partners and choose to work in collaboration in the

areas of science, research and innovation, with mutual respect for each other's deep commitment to

research excellence, and finding innovative ways to address global challenges;

EU/CA/en 2

ACKNOWLEDGING the intention of the Parties to develop a framework that enhances cooperative

activities while also respecting each other's domestic approach to developing and monitoring

research and innovation programmes or activities, as well as to carrying out reviews, audits and

investigations in line with the principles of proportionality, good faith and non-discrimination;

–
WHEREAS the Union programme Horizon Europe the Framework Programme for Research and

Innovation (2021-2027) (hereinafter referred to as "the Horizon Europe Programme") was

established by Regulation (EU) 2021/695 of the European Parliament and of the Council **[1]** ;

RECOGNISING the general principles set out in Regulation (EU) 2021/695;

EMPHASISING the role of the European Partnerships envisaged in the Horizon Europe Programme

in addressing some of Europe's most pressing challenges through concerted research and innovation

initiatives contributing significantly to those Union priorities in the area of research and innovation

that require critical mass and long-term vision, and emphasising the importance of associated

countries' involvement in those Partnerships;

RECOGNISING that reciprocal participation in each other's research and innovation programmes

should provide mutual benefits, while acknowledging that each Party reserves its right to limit or

condition participation in their research and innovation programmes, including in particular for

actions related to their strategic assets, interests, autonomy, or security,

HAVE AGREED AS FOLLOWS:

**1** Regulation (EU) 2021/695 of the European Parliament and of the Council of 28 April 2021

–
establishing Horizon Europe the Framework Programme for Research and Innovation,
laying down its rules for participation and dissemination, and repealing Regulations
(EU) No 1290/2013 and (EU) No 1291/2013 (OJ EU L 170, 12.5.2021, p. 1).

EU/CA/en 3

ARTICLE 1

Subject matter

This Agreement establishes the terms and conditions applicable to the participation of Canada in

any Union programme or activity that is covered by a Protocol to this Agreement.

ARTICLE 2

Definitions

For the purposes of this Agreement, the following definitions apply:

(1) "basic act" means:

(i) a legal act of one or more Union institutions, other than a recommendation or an opinion,

establishing a programme, which provides a legal basis for an action and for the

implementation of the corresponding expenditure entered into the Union budget or of the

budgetary guarantee or financial assistance backed by the Union budget, including any

amendment and any relevant acts of a Union institution which supplement or implement that

act, except those adopting work programmes; or

(ii) a legal act of one or more Union institutions, other than a recommendation or an opinion,

establishing an activity financed from the Union budget other than programmes, including any

amendment and any relevant acts of a Union institution which supplement or implement that

act, except those adopting work programmes;

EU/CA/en 4

(2) "funding agreement" means agreements relating to Union programmes or activities under

Protocols to this Agreement, in which Canada participates, which implement Union funds, such as

grant agreements, contribution agreements, financial framework partnership agreements, financing

agreements and guarantee agreements;

(3) "other rules pertaining to the implementation of the Union programme or activity" means

rules laid down in Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the

Council **[1]** (the "Financial Regulation") that apply to the general budget of the Union, and in the work

programme or in the calls or other Union award procedures;

(4) "Union award procedure" means a procedure for the award of Union funding launched by the

Union or by persons or entities entrusted with the implementation of Union funds;

(5) "Canadian entity" means any natural or legal person who resides or is established in Canada,

or who is the Government of Canada or the government of a Canadian province or territory, and

who participates in the activities of a Union programme or activity in accordance with the basic act;

(6) "Open Science" means an approach to the scientific process based on cooperative work, tools

and diffusing knowledge, with open access to scientific publications resulting from research funded

under the Horizon Europe Programme. Open access is practiced with full respect for privacy,

security, ethical considerations, and appropriate intellectual property protection, in accordance with

the principle "as open as possible, as closed as necessary". Research data management is handled in

accordance with the principles of "findability", "accessibility", "interoperability", and "reusability"

(the "FAIR principles").

**1** Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council
of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending
Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013,
(EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014,
(EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation
(EU, Euratom) No 966/2012 (OJ EU L 193, 30.7.2018, p. 1).

EU/CA/en 5

ARTICLE 3

Establishment of the participation

1. Canada shall be allowed to participate in and contribute to the Union programmes or

activities, or parts thereof, that are opened to the participation of Canada in accordance with the

basic acts and as covered by Protocols to this Agreement.

2. The specific terms and conditions for the participation of Canada in any particular Union

programme or activity shall be laid down in one or more Protocols to this Agreement, which may be

adopted and amended by decision of the Joint Committee in accordance with Article 16.

3. The specific terms and conditions for the participation of Canada in the Horizon Europe

Programme are laid down in the Protocol on the Association of Canada to Horizon Europe – the

Framework Programme for Research and Innovation (2021-2027) (hereinafter referred to as

"Protocol on the Association of Canada to Horizon Europe").

4. The Protocols to this Agreement shall:

(a) identify the Union programmes or activities, or parts thereof, in which Canada is to

participate;

(b) lay down the duration of Canada's participation, which shall refer to the period of time during

which Canada and Canadian entities may apply for Union funding or may be entrusted with

the implementation of Union funds;

EU/CA/en 6

(c) lay down specific conditions for the participation of Canada and Canadian entities, including

specific modalities for the implementation of the financial conditions set out in Articles 6

and 7 of this Agreement, and, where applicable, specific modalities for the correction

mechanism referred to in Article 8 of this Agreement, and conditions for participation in

structures created for the purpose of implementing those Union programmes or activities; and

(d) where applicable, lay down the amount of Canada's financial contribution to a Union

programme implemented through a financial instrument or a budgetary guarantee.

5. The conditions referred to in paragraph 4(c) of this Article shall comply with this Agreement

and the basic acts and acts of one or more Union institutions establishing those structures.

ARTICLE 4

Compliance with the rules of the Union programme or activity

1. Canada shall participate in the Union programmes or activities, or parts thereof, covered by

Protocols to this Agreement under the terms and conditions established in this Agreement and the

Protocols to this Agreement, in the basic acts and in the other rules pertaining to the implementation

of the Union programme or activity.

2. The terms and conditions referred to in paragraph 1 of this Article shall include:

(a) the eligibility of the Canadian entities and any other eligibility conditions related to Canada,

in particular to the origin, place of activity, or nationality; and

(b) the terms and conditions applicable to the submission, assessment and selection of

applications and to the implementation of the actions by eligible Canadian entities.

EU/CA/en 7

3. The terms and conditions referred to in paragraph 2(b) of this Article shall be equivalent to

those applicable to eligible entities of Member States of the Union, including respect for Union

restrictive measures adopted under the Treaty on European Union or the Treaty on the Functioning

of the European Union, unless otherwise provided for in the terms and conditions referred to in

paragraph 1 of this Article.

ARTICLE 5

Participation of Canada in the governance of Union programmes or activities

1. Representatives or experts of Canada or experts designated by Canada shall be allowed to

take part, as observers, in the committees, expert group meetings or other similar meetings in which

representatives or experts of the Member States of the Union (hereinafter referred to as

"Member States"), or experts designated by Member States take part and which assist the European

Commission in the implementation and management of the Union programmes or activities, or parts

thereof, in which Canada participates in accordance with Article 3 of this Agreement or are

established by the European Commission in respect of the implementation of the Union law in

relation to those Union programmes or activities, or parts thereof, unless those meetings concern

points reserved only for Member States or in relation to a Union programme or activity, or parts

thereof, in which Canada is not participating. The representatives or experts of Canada, or experts

designated by Canada, shall not be present at the time of voting. Canada shall be informed of the

result of the vote.

2. Where experts or evaluators are not appointed on the basis of nationality, nationality shall not

be a reason to exclude Canadian nationals.

EU/CA/en 8

3. Subject to paragraph 1 of this Article, the participation of the Canadian representatives in the

meetings referred to in paragraph 1, or in other meetings related to the implementation of Union

programmes or activities, shall be governed by the same rules and procedures as those applicable to

representatives of the Member States concerning speaking rights, receipt of information, and

documentation unless it concerns points reserved only for Member States or in relation to a Union

programme or activity, or parts thereof, in which Canada is not participating. Protocols to this

Agreement may specify further modalities for the reimbursement of travel and subsistence costs.

4. Protocols to this Agreement may specify further modalities for the participation of experts, as

well as the participation of Canada in governing boards and structures created for the purpose of

implementing Union programmes or activities defined in the relevant Protocols.

ARTICLE 6

Financial conditions

1. Participation of Canada or Canadian entities in Union programmes or activities, or parts

thereof, shall be subject to Canada contributing financially to the corresponding funding under the

general budget of the Union (hereinafter referred to as the "Union budget").

2. For each Union programme or activity, or parts thereof, the financial contribution referred to

in paragraph 1 of this Article shall take the form of the sum of:

(a) an operational contribution; and

(b) a participation fee.

EU/CA/en 9

3. The financial contribution shall take the form of an annual payment made in one or more

instalments.

4. Without prejudice to paragraph 9 of this Article and Article 7, the participation fee shall

be 4 % of the annual operational contribution and shall not be subject to retrospective adjustments.

As of 2028, the level of the participation fee may be adjusted by the Joint Committee.

5. The operational contribution shall cover operational and support expenditure and be

additional in both commitment and payment appropriations to the amounts entered into the Union

budget definitively adopted for Union programmes or activities, or parts thereof, increased, where

appropriate, by external assigned revenue that does not result from financial contributions to Union

programmes or activities from other donors covered by the relevant Protocols to this Agreement.

6. The operational contribution shall be based on a contribution key defined as the ratio of the

gross domestic product (GDP) of Canada at market prices to the GDP of the Union at market prices.

The GDPs at market prices to be applied shall be determined by the dedicated services of the

European Commission on the basis of the most recent statistical data available for budget

calculations in the year prior to the year in which the annual payment is due. Adjustments to this

contribution key may be laid down in the relevant Protocols to this Agreement. The adjustments

may vary from year to year and may be expressed as a coefficient.

7. The operational contribution shall be based on the application of the contribution key to the

initial commitment appropriations increased as described in paragraph 5 of this Article entered into

the Union budget definitively adopted for the applicable year for financing the Union programmes

or activities, or parts thereof, in which Canada participates.

8. By way of derogation from paragraphs 6 and 7, Canada's annual operational contribution to

the Horizon Europe Programme for the years 2024 to 2027 shall be set in fixed amounts laid down

in Annex I to the Protocol on the Association of Canada to Horizon Europe.

EU/CA/en 10

9. The participation fee referred to in paragraph 2(b) of this Article shall be determined with the

following percentages for the years 2024 to 2027:

–
2024: 2 %;

–
2025: 2.5 %;

–
2026: 3 %;

– 2027: 4 %.

10. Upon request, the Union shall provide Canada with information in relation to its financial

contribution as included in the information related to budgetary, accounting, performance, and

evaluation provided to the Union budgetary and discharge authorities concerning the Union

programmes or activities, or parts thereof, in which Canada participates. That information shall be

provided having due regard to the law of each Party addressing confidentiality and data protection

and is without prejudice to the information which Canada is entitled to receive under

this Agreement.

11. All financial contributions of Canada or payments from the Union, and the calculation of

amounts due or to be received, shall be made in euros.

12. Detailed provisions for the implementation of this Article are set out in the relevant Protocols

to this Agreement.

EU/CA/en 11

ARTICLE 7

Union programmes or activities

to which an adjustment mechanism of the operational contribution applies

1. If so provided in a Protocol to this Agreement, the operational contribution of a Union

programme or activity, or parts thereof, for year N may be adjusted retrospectively in one or more

subsequent years on the basis of the budgetary commitments made on the commitment

appropriations of that year, their implementation through legal commitments, and their

decommitment.

2. The first adjustment shall be made in year N+1 when the operational contribution shall be

adjusted by the difference between the contribution and an adjusted contribution calculated by

applying the contribution key of year N, adjusted via the application of a coefficient if the relevant

Protocol to this Agreement so provides, to the sum of:

(a) the amount of budgetary commitments made on commitment appropriations authorised in

year N under the Union budget adopted and on commitment appropriations corresponding to

decommitments made available again; and

(b) any external assigned revenue appropriations that do not result from financial contributions to

Union programmes or activities from other donors covered in relevant Protocols to this

Agreement and that were available at the end of year N.

EU/CA/en 12

3. Each subsequent year, until all the budgetary commitments financed under commitment

appropriations originating from year N have been paid or decommitted and at the latest three years

after the end of the Union programme or after the end of the multiannual financial framework

corresponding to year N, whichever is earlier, the Union shall calculate an adjustment of the

contribution of year N by reducing the Canadian contribution by the amount obtained by applying

the contribution key, adjusted if the relevant Protocol to this Agreement so provides, of year N to

the decommitments made each year on commitments of year N financed under the Union budget or

from decommitments made available again.

4. If external assigned revenue appropriations that do not result from financial contributions to

Union programmes or activities from other donors covered by relevant Protocols to this Agreement

are cancelled, the contribution of Canada to the relevant Union programme or activity, or parts

thereof, shall be reduced by the amount obtained by applying the contribution key, adjusted if the

relevant Protocol so provides, of year N to the amount cancelled.

ARTICLE 8

Union programmes or activities to which an automatic correction mechanism applies

1. An automatic correction mechanism shall apply in relation to those Union programmes or

activities, or parts thereof, for which the application of an automatic correction mechanism is

provided for in a Protocol to this Agreement. The application of that automatic correction

mechanism may be limited to parts of the programme or activity specified in that Protocol to this

Agreement which are implemented through grants for which competitive calls are organised.

Detailed rules on the identification of the parts of the Union programme or activity to which the

automatic correction mechanism does or does not apply may be established in the relevant Protocol

to this Agreement.

EU/CA/en 13

2. The amount of the automatic correction for a Union programme or activity, or parts thereof,

shall be the difference between the initial amounts of the legal commitments actually entered into

with Canada or Canadian entities financed from commitment appropriations of the year in question

and the corresponding operational contribution paid by Canada as adjusted pursuant to Article 7 if

the relevant Protocol to this Agreement provides for such adjustment, excluding support

expenditure, covering the same period.

3. Detailed rules on the establishment of the relevant amounts of the legal commitments referred

to in paragraph 2 of this Article, including in the case of consortia, and on the calculation of the

automatic correction may be laid down in the relevant Protocol to this Agreement.

ARTICLE 9

Reviews and audits

1. In accordance with the applicable acts of one or more Union institutions and to the extent

provided in the relevant funding agreement and any other applicable contract, the Union may

conduct technical, scientific, financial, or other types of reviews and audits on the premises of any

Canadian entity that is a party to the relevant funding agreement, as well as any Canadian entity

third party implementing the funding agreement. Such review and audit may be carried out by the

Union officials, in particular officials of the European Commission and the European Court of

Auditors, or by other persons mandated by the European Commission. When exercising their duties

in the territory of Canada, the European Commission or other persons mandated by the European

Commission shall act in a manner compatible with Canadian law.

EU/CA/en 14

2. When conducting a review or audit as referred to in paragraph 1 of this Article, Union

officials, in particular officials of the European Commission and the European Court of Auditors,

and the other persons mandated by the European Commission, may have appropriate access to sites,

works, and documents (in electronic and paper versions), and all information required in order to

carry out such audits, including the right to obtain a physical/electronic copy of, and extracts from,

any document or the contents of any data medium held by the audited natural or legal person, or by

the audited third party.

3. Canada shall not adopt measures in respect of entry into Canada or access to premises for the

purpose of preventing or obstructing the reviews or audits referred to in paragraph 1 of this Article.

This paragraph shall not be construed to prevent Canada from adopting or maintaining measures of

general application, including general visa requirements. Those measures of general application

shall not be regarded as nullifying or impairing the reviews or audits referred to in paragraph 1 of

this Article.

4. The reviews and audits referred to in paragraph 1 of this Article may be carried out, after the

suspension of application of a Protocol to this Agreement pursuant to paragraph 5 of Article 19 of

this Agreement, the cessation of provisional application, or the termination of this Agreement, in

relation to any legal commitment implementing the Union budget entered into by the Union before

the date on which the suspension of application of the relevant Protocol, the cessation of provisional

application, or the termination of this Agreement takes effect.

EU/CA/en 15

ARTICLE 10

Protection of the financial interests of the Union against irregularities

1. The European Commission and the European Anti-Fraud Office (OLAF) may carry out

administrative investigations, including on-the-spot checks and inspections, on the territory of

Canada of a Canadian entity that is party to a relevant funding agreement or a Canadian entity third

party implementing the funding agreement under a contract, in accordance with, and to the extent

provided in, the relevant funding agreement and other applicable contract. Those investigations

shall be carried out in accordance with the terms and conditions established by applicable acts of

one or more Union institutions. When exercising their duties in the territory of Canada, the

European Commission and OLAF shall act in a manner compatible with Canadian law.

2. The designated Canadian contact point shall, as appropriate, inform the European

Commission or OLAF within reasonable time of any fact or suspicion which has come to their

notice relating to an irregularity, fraud, or other illegal activity related to a funding agreement or

contract referred to in paragraph 1 of this Article affecting the financial interests of the Union.

3. When carrying out an administrative investigation referred to in paragraph 1 of this Article,

on-the-spot checks and inspections may be carried out on the premises of the Canadian entity

referred to in that paragraph, as well as of any other Canadian entity that consents.

4. On-the-spot checks and inspections shall be prepared and conducted by the European

Commission or OLAF in close collaboration with the designated Canadian contact point. The

designated contact point shall be notified within a reasonable time in advance of the object,

purpose, and legal basis of the checks and inspections. Officials identified by the Canadian contact

point may participate in the on-the-spot checks and inspections.

EU/CA/en 16

5. Upon request by the designated Canadian contact point, the on-the-spot checks and

inspections may be carried out jointly with the European Commission or OLAF.

6. When carrying out an administrative investigation referred to in paragraph 1 of this Article,

Union officials may have access to all the information and documentation, including computer data,

on the operations concerned, which are required for the proper conduct of the on-the-spot checks

and inspections. They may, in particular, copy relevant documents.

7. Where the Canadian entity referred to in paragraph 1 of this Article resists an on-the-spot

check or inspection, the designated Canadian contact point, acting in accordance with Canadian

law, shall provide information or documentation, as appropriate, to assist the European Commission

or OLAF to fulfil their duty in carrying out an on-the-spot check or inspection. In this context, the

designated Canadian contact point may also, as appropriate, facilitate informing Canadian

competent authorities of a fact or suspicion which have come to the attention of the European

Commission or OLAF relating to a criminal offence in Canada while conducting the on-the-spot

check or inspection, for the purpose of safeguarding evidence for an investigation of a Canadian

criminal offence.

8. The European Commission or OLAF shall inform the designated Canadian contact point of

the result of such checks and inspections. In particular, the European Commission or OLAF shall

report as soon as possible to the contact point any fact or suspicion relating to an irregularity which

has come to their notice in the course of the on-the-spot check or inspection.

9. Without prejudice to the application of Canadian criminal law, the European Commission

may impose administrative measures and penalties on Canadian entities referred to in paragraph 1

of this Article in accordance with Union legislation.

EU/CA/en 17

10. For the purposes of the proper implementation of this Article, the European Commission or

OLAF and the designated contact point shall regularly exchange information and, at the request of

one of the Parties, consult each other.

11. In order to facilitate effective cooperation and exchange of information with OLAF, Canada

shall designate a contact point.

12. Information exchanged between the European Commission or OLAF and the designated

contact point shall take place having due regard to the confidentiality requirements. Personal data

included in the exchange of information shall be protected in accordance with applicable rules.

ARTICLE 11

Cooperation regarding criminal offenses affecting the financial interests of the Union

The Canadian authorities shall cooperate, in accordance with applicable international cooperation

instruments, including those between Canada and Member States or the Union, or as otherwise

permitted under Canada's domestic law, with the authorities of the Union or of the Member States

competent for the investigation and prosecution of criminal offences affecting the financial interests

of the Union, including bringing to judgment alleged perpetrators and accomplices of those criminal

offences. Requests submitted to Canada pursuant to applicable international cooperation

instruments may include as applicable requests made in relation to investigations or prosecutions of

the European Public Prosecutor's Office.

EU/CA/en 18

ARTICLE 12

Sharing of information

The Parties shall exchange information in relation to reviews, audits and other activities referred to

in Articles 9 and 10 with due regard to each Party's confidentiality and data protection law.

ARTICLE 13

Recovery and enforcement

1. The European Commission may adopt a decision imposing a pecuniary obligation on a

Canadian entity that is a party to a relevant funding agreement other than the State in relation to any

claims stemming from the funding agreement. If, following the notification of that decision to the

Canadian entity in accordance with Article 14, that entity does not pay within the prescribed period,

the European Commission shall notify to the designated Canadian contact point of the decision.

Canada shall pay to the European Commission the amount of the pecuniary obligation after being

notified unless the European Commission has not completed its applicable standard procedures to

enforce the decision. If Canada pays the amount of the pecuniary obligation, Canada may seek a

refund of the amount from the Canadian entity on whom the pecuniary obligation is imposed and

the European Commission shall provide relevant documentation on the payment made if requested

by Canada.

2. Canada shall notify its designated Canadian contact point to the European Commission.

EU/CA/en 19

3. The Court of Justice of the European Union shall have jurisdiction to review the legality of

the decisions of the European Commission referred to in paragraph 1 and to suspend their

enforcement.

ARTICLE 14

Communication and exchange of information

The Union institutions and bodies involved in the implementation of or in control of Union

programmes or activities, may communicate directly, including through electronic exchange

systems, with any natural person residing in Canada or legal entity established in Canada receiving

Union funding, as well as with any third party involved in the implementation of Union funding that

resides or is established in Canada for a purpose relevant to a funding agreement and other

applicable contract concluded to implement that Union programme or activity. Those persons,

entities, and third parties may submit directly to the Union institutions and bodies, relevant

information and documentation which they are required to submit on the basis of the relevant

funding agreement and other applicable contracts concluded to implement that programme or

activity, and in line with the Union legislation applicable to that programme or activity.

ARTICLE 15

The Joint Committee

1. The Parties hereby establish the Joint Committee. The Joint Committee shall be composed of

representatives of the Union and Canada.

EU/CA/en 20

2. Except as may be otherwise provided in this Agreement, the Joint Committee shall act in

accordance with the Rules of Procedure of the Joint Committee set out in Annex I to this

Agreement.

3. Unless otherwise provided for in this Agreement, the tasks of the Joint Committee shall

consist of:

(a) assessing, evaluating, and reviewing the implementation of this Agreement and the Protocols

to this Agreement, in particular:

(i) the participation and performance of Canadian legal entities in Union programmes and

activities;

(ii) where relevant the level of mutual openness to the legal entities established in each

Party to participate in programmes, projects, actions, or activities, or parts thereof, of

the other Party;

(iii) the implementation of the financial contribution mechanism and where relevant the

automatic correction mechanism applicable to Union programmes or activities covered

by Protocols to this Agreement;

(iv) information exchange and where relevant examining any possible questions on the

exploitation of results, including intellectual property rights; and

(v) discussing upon request of either Party the participation fee and adjustments to the level

of the participation fee for the years after 2027;

EU/CA/en 21

(b) discussing upon request of either Party restrictions applied or planned by one or both Parties

on access to their respective research and innovation programmes, including in particular for

actions related to their strategic assets, interests, autonomy, or security;

(c) examining how to improve and develop cooperation;

(d) discussing jointly the future orientations and priorities of policies related to programmes or

activities covered by Protocols to this Agreement;

(e) exchanging information that is relevant for the implementation of this Agreement and the

Protocols to this Agreement, including, on new legislation, measures, or national

programmes; and

(f) developing, considering, or adopting new Protocols to this Agreement on specific terms and

conditions of participation of Canada in Union programmes or activities, or parts thereof,

amendments to the existing Protocols to this Agreement or to paragraph 4 of Article 6 or to

Articles 9, 10 or 11 of this Agreement, or amendments to Annex I to this Agreement, in

accordance with Article 16 and any applicable legal requirement or procedure of the Parties.

4. The Joint Committee may set up a working party or advisory body on an _ad hoc_ basis at

expert level that can assist in carrying out the implementation of this Agreement.

5. The Joint Committee shall meet at least once a year, and, whenever special circumstances so

require, upon the request of a Party.

EU/CA/en 22

ARTICLE 16

Decisions of the Joint Committee

1. The Joint Committee shall take its decisions by consensus.

2. Where the representatives on the Joint Committee are duly authorised in advance if required

according to their applicable legal procedures, the Joint Committee may develop and consider:

(a) new Protocols to this Agreement on specific terms and conditions of participation of Canada

in Union programmes or activities, or parts thereof;

(b) amendments to existing Protocols to this Agreement;

(c) amendments to paragraph 4 of Article 6 of this Agreement;

(d) amendments to Articles 9, 10, or 11 of this Agreement in so far as those are required to take

account of changes made to acts of one or more Union institutions; or

(e) amendments to Annex I to this Agreement.

3. Notwithstanding paragraph 13 of Article 19 of this Agreement, after the representatives on the

Joint Committee are duly authorised in advance if required according to their applicable legal

procedures, the Joint Committee may, by decision, adopt:

(a) new Protocols to this Agreement on specific terms and conditions of participation of Canada

in Union programmes or activities, or parts thereof;

EU/CA/en 23

(b) amendments to existing Protocols to this Agreement;

(c) amendments to paragraph 4 of Article 6 of this Agreement;

(d) amendments to Articles 9, 10, or 11 of this Agreement in so far as those are required to take

account of changes made to acts of one or more Union institutions; or

(e) amendments to Annex I to this Agreement,

as developed under paragraph 2 of this Article.

4. In any decision pursuant to paragraph 3 of this Article, the representatives on the Joint

Committee shall specify that, where required by a Party's legal system, new Protocols to this

Agreement or amendments to existing Protocols or to parts of this Agreement covered by

paragraph 3 of this Article are to enter into force after the notification in writing of the completion

of any outstanding legal requirement and procedures of the Parties, or at a later date as specified in

the decision.

ARTICLE 17

Applicable law

Implementation of this Agreement shall be done in accordance with each Party's applicable law in

their respective territories.

EU/CA/en 24

ARTICLE 18

Consultations

1. The Parties shall endeavour, in good faith, to resolve any matter between them arising from

the interpretation or implementation of this Agreement amicably, through discussions at the Joint

Committee.

2. If a matter arising from the interpretation or implementation of this Agreement cannot be

resolved through discussions at the Joint Committee within two-months of being raised by either

Party, a Party may request consultations with the other Party regarding the matter. The Parties will

resolve any differences through negotiation.

ARTICLE 19

Final provisions

1. This Agreement shall enter into force on the date of the last notification by a Party to the other

Party of the completion of its internal procedures necessary for that purpose. It shall apply

retroactively from 1 January 2024.

2. The Parties may apply this Agreement provisionally pending its entry into force in accordance

with their respective internal procedures and law. The provisional application shall begin on the

later of the dates on which each Party has notified the other of the completion of their internal

procedures necessary for that purpose.

EU/CA/en 25

3. If either Party notifies the other Party that it will not complete its internal procedures

necessary for the entry into force of this Agreement, this Agreement shall cease to apply

provisionally on the date of receipt of this notification by the other Party, which shall also constitute

the cessation date for the purposes of this Agreement. The decisions of the Joint Committee shall

cease to apply on the same date.

4. The application of a relevant Protocol to this Agreement may be suspended by the Union in

the event of partial or full non-payment of the financial contribution due by Canada under the

relevant Union programme or activity.

5. As set out in paragraph 4 of this Article, in the event of non-payment which may significantly

jeopardise the implementation and management of the relevant Union programme or activity, the

European Commission shall send a formal letter of reminder. Where no payment is made

within 20 working days after the formal letter of reminder, suspension of the application of the

relevant Protocol to this Agreement shall be notified by the European Commission to Canada by a

formal letter of notification which shall take effect 15 days following the receipt of this notification

by Canada.

6. In the event that the application of a Protocol to this Agreement is suspended under

paragraph 5 of this Article, Canadian entities shall not be eligible to participate in Union award

procedures that are not yet completed when the suspension takes effect. A Union award procedure

shall be considered completed when legal commitments have been entered into as a result of that

procedure.

7. A suspension under paragraph 5 of this Article does not affect the legal commitments entered

into with Canadian entities under the relevant Union programme or activity before the suspension

took effect. The relevant Protocol to this Agreement shall continue to apply to such legal

commitments.

EU/CA/en 26

8. The Union shall immediately notify Canada once the entire amount of the financial

contribution due has been received by the Union. A suspension under paragraph 5 of this Article

shall cease to have effect on the date of this notification.

9. Canadian entities shall be eligible in Union award procedures under the relevant Union

programme or activity launched after the date on which suspension pursuant to paragraph 5 of this

Article ceases to have effect, and any other award procedures launched before this date, for which

deadlines for submission of applications have not expired.

10. Either Party may terminate this Agreement at any time by a written notification informing the

other Party of the intent to terminate it. The termination shall take effect three calendar months after

the date on which the other Party receives such notification. The date on which the termination

takes effect shall constitute the termination date for the purposes of this Agreement.

11. Where this Agreement ceases to apply provisionally in accordance with paragraph 3 of this

Article or is terminated in accordance with paragraph 10 of this Article, the Parties agree that:

(a) Projects, actions, or activities, or parts thereof, in respect of which legal commitments have

been entered into during the provisional application, or after the entry into force of this

Agreement, and before this Agreement ceases to apply provisionally or is terminated, shall

continue until their completion under the conditions laid down in this Agreement and the

Protocols to this Agreement.

EU/CA/en 27

(b) The annual financial contribution to the relevant Union programme or activity of the year N

during which this Agreement ceases to apply provisionally or is terminated shall be paid

entirely in accordance with Article 6 of this Agreement and any relevant rules in the relevant

Protocols to this Agreement. Where the adjustment mechanism applies, the operational

contribution to the relevant Union programme or activity of the year N shall be adjusted in

accordance with Article 7 of this Agreement. For programmes or activities where both the

adjustment mechanism and the automatic correction mechanism apply, the relevant

operational contribution of the year N shall be adjusted in accordance with Article 7 of this

Agreement and corrected in accordance with Article 8 of this Agreement. For Union

programmes or activities, where only the correction mechanism applies, the relevant

operational contribution of the year N shall be corrected in accordance with Article 8 of this

Agreement. The participation fee paid for the year N as part of the financial contribution to

the relevant Union programme or activity shall not be adjusted or corrected.

(c) Where the adjustment mechanism applies, following the year during which this Agreement

ceases to apply provisionally or is terminated, the operational contributions to the relevant

Union programme or activity paid for the years during which this Agreement applied shall be

adjusted in accordance with Article 7 of this Agreement. For Union programmes or activities

where both the adjustment mechanism and the automatic correction mechanism apply, those

operational contributions shall be adjusted in accordance with Article 7 of this Agreement and

automatically corrected in accordance with Article 8 of this Agreement. For Union

programmes or activities where only the automatic correction mechanism applies, the relevant

operational contributions shall be automatically corrected in accordance with Article 8 of this

Agreement.

EU/CA/en 28

12. The Parties shall settle by mutual consent any other consequences of the cessation of

provisional application or the termination of this Agreement.

13. Except as otherwise provided for in Article 16, this Agreement may only be amended in

writing by mutual consent of the Parties. The entry into force of the amendments under this

paragraph will follow the same procedure as that applicable for the entry into force of this

Agreement as provided in paragraph 1 of this Article.

14. Unless otherwise agreed to by the Parties, Protocols and Annexes to this Agreement shall

constitute an integral part thereof.

15. This Agreement shall be drawn up in duplicate in the Bulgarian, Croatian, Czech, Danish,

Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Irish, Italian, Latvian,

Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish

languages, each text being equally authentic.

Done at …, this …… day of …. in the year ….

For the European Union,

For Canada,

EU/CA/en 29

**ANNEX I**

RULES OF PROCEDURE OF THE JOINT COMMITTEE

RULE 1

Tasks

The Joint Committee established by Article 15 of this Agreement shall perform the tasks and duties

set out in Article 15 and 16 of this Agreement.

RULE 2

Composition and Chair

1. The Joint Committee shall be composed of representatives of the Union and Canada.

2. The Joint Committee shall be co-chaired by senior officials or their designees acting as

representatives of the Union and Canada, respectively.

3. The Union and Canada shall notify each other of the name, position, and contact details of the

officials who are the co-chairs of the Joint Committee for the Union and Canada, respectively.

Those officials shall be deemed to continue acting as the co-chair for the Union or Canada,

respectively, until the date on which either the Union or Canada has notified the other Party of

a new co-chair.

EU/CA/Annex I/en 1

4. A co-chair shall be deemed to have the authorisation to represent, respectively, the Union or

Canada until the date a new co-chair has been notified to the other Party.

RULE 3

Secretariat

1. The Secretariat of the Joint Committee (hereinafter referred to as the "Secretariat") shall be

composed of an official of the Union and an official of Canada. The Secretariat shall perform

the tasks conferred on it by these Rules of Procedure.

2. The Union and Canada shall notify each other of the name, position, and contact details of the

officials who are the members of the Secretariat for the Union and Canada, respectively.

Those officials shall be deemed to continue acting as a member of the Secretariat for the

Union or Canada, respectively, until the date on which either the Union or Canada has

notified a new official to the other Party.

RULE 4

Meetings

1. The Joint Committee shall meet, in principle, alternately in Brussels and in Canada unless the

co-chairs decide otherwise. Meetings may also be held by videoconference or teleconference,

if so decided by the co-chairs.

EU/CA/Annex I/en 2

2. In between its meetings, the Joint Committee shall conduct its work and exchange

information relevant to this Agreement and the Protocols to this Agreement on an ongoing

basis by any means of communication available, in particular through exchange of emails.

RULE 5

Participation in meetings

1. Within a reasonable amount of time in advance of each meeting, the Union and Canada shall

inform each other through the Secretariat of the intended composition of their respective

delegations and shall specify the name and function of each member of the delegation serving

as a representative of each Party.

2. Where appropriate and by mutual decision, the co-chairs may invite experts such as

non-government officials to attend meetings of the Joint Committee in order to provide

information on a specific subject and for the parts of the meeting where such specific subjects

are discussed.

3. The representative of the Party organising and hosting the meeting, after having obtained

approval of the other Party, fixes the date and the place of the meeting.

EU/CA/Annex I/en 3

RULE 6

Documents

Written documents on which the deliberations of the Joint Committee are based shall be numbered

and circulated to the Union and Canada by the Secretariat.

RULE 7

Correspondence

1. The Union and Canada shall send their correspondence addressed to the Joint Committee via

the Secretariat. Such correspondence may be sent by any means of written communication

available, including through emails.

2. The Secretariat shall ensure that the correspondence addressed to the Joint Committee is

delivered to the co-chairs and is circulated, where appropriate, in accordance with Rule 6.

3. All correspondence from, or addressed directly to, the co-chairs shall be forwarded to the

Secretariat and shall be circulated, where appropriate, in accordance with Rule 6.

EU/CA/Annex I/en 4

RULE 8

Agenda

1. For each meeting, a draft provisional agenda shall be drawn up by the Secretariat. To that end,

at least four weeks before the date of the meeting, the first draft of a provisional agenda

together with the documents related to each item appearing thereon shall be prepared by the

official acting as the member of the Secretariat of the Party hosting the meeting and

transmitted for comments to the member of the Secretariat of the other Party. Once prepared

by the Secretariat, the draft provisional agenda, together with any relevant documents, shall

be transmitted to the co-chairs for approval no later than 10 days before the date of the

meeting.

2. The provisional agenda shall include items that have been requested by the Parties, including

any matter to be raised under Article 18 of this Agreement. Any request to add an item to the

provisional agenda, together with any relevant documents, shall be submitted to the

Secretariat no later than 15 days before the beginning of the meeting.

3. In exceptional cases, the co-chairs may jointly decide to reduce the periods provided for in

paragraphs 1 and 2 of this Rule.

4. The Joint Committee shall adopt its agenda at the beginning of each meeting.

5. Points that do not appear on the draft agenda may be added, and other points of the draft

agenda may be deleted, deferred, or amended at the meeting, provided that the two co-chairs

so jointly decide.

EU/CA/Annex I/en 5

RULE 9

Transparency and access to documents

1. The meetings of the Joint Committee shall not be public, unless otherwise jointly decided by

the co-chairs.

2. Each Party may decide on the publication of the decisions of the Joint Committee in its

respective official journal or online, after prior consultation with the other Party. Decisions

adopting new Protocols or amendments to existing Protocols, to paragraph 4 of Article 6, to

Articles 9, 10, or 11 of this Agreement or to this Annex shall only be published when they

enter into force in accordance with paragraph 4 of Article 16 of this Agreement.

3. If the Union or Canada submits to the Joint Committee information that is confidential or

protected from disclosure under its applicable law, the other Party shall treat that information

received as confidential.

4. Each Party shall handle requests for access to the Joint Committee documents in accordance

with its applicable law.

5. If the European Commission submits to the Joint Committee information that is confidential

or protected from disclosure under its relevant information security rules, Canada shall ensure

a comparable level of confidentiality and protection for the information received. If Canada

submits to the Joint Committee information that is confidential or protected from disclosure

under its applicable law, the European Commission shall treat the information received as

confidential.

EU/CA/Annex I/en 6

RULE 10

Minutes

1. Minutes shall be taken of all meetings of the Joint Committee.

2. Draft minutes of each meeting shall be drawn up by the official acting as the member of the

Secretariat of the Party hosting the meeting, within 15 days from the end of the meeting,

unless otherwise jointly decided by the co-chairs. The draft minutes shall be transmitted for

comments to the member of the Secretariat of the other Party. The latter may submit

comments within 30 days from the date of receipt of the draft minutes.

3. The minutes shall summarise each item on the agenda, specifying where applicable:

(a) the documents submitted to the Joint Committee;

(b) any statement that a Party requested be entered into the minutes; and

(c) the decisions adopted, statements decided upon, and operational conclusions adopted on

specific items.

The minutes shall include an attendance list with names, titles, and capacity of all participants

to the meeting.

EU/CA/Annex I/en 7

4. The minutes shall be approved and signed by the co-chairs within two months following the

meeting or by any other date decided by the co-chairs. The co-chairs may jointly decide that

signing and exchanging electronic copies satisfies the latter requirement. The authentic

version of the minutes shall be preserved in the files of each Party.

5. Within two working days following the Joint Committee meeting, the Secretariat of the Joint

Committee shall also prepare a summary of the minutes for approval by the co-chairs as soon

as practicable. Once the co-chairs of the Joint Committee have approved the text of the

summary, the Parties may make public the summary of the minutes.

RULE 11

Decisions

1. As provided under Article 16 of this Agreement, the Joint Committee shall take decisions by

consensus. The Secretariat shall record any decision under a serial number and with a

reference to the date of its adoption.

2. The Joint Committee shall take decisions in writing and through an exchange of notes

between the co-chairs, unless the Parties jointly decide otherwise with regard to a given

decision.

3. The text of a draft decision shall be presented in writing by one co-chair to the other co-chair,

duly authorised to do so in advance in accordance with any applicable domestic legal

procedures, if required.

EU/CA/Annex I/en 8

4. If the other Party does not express its agreement, the proposed decision shall be discussed and

may be adopted at a future meeting of the Joint Committee.

5. The draft decision shall be deemed to be adopted once the other Party expresses its agreement

in writing, unless the draft decision is in respect of a decision developed or considered under

paragraph 2 of Article 16, in which case it shall be adopted pursuant to paragraph 3 of

Article 16.

6. The decisions taken between Joint Committee meetings shall be recorded in the minutes of

the next meeting of the Joint Committee.

7. Without prejudice to paragraph 4 of Article 16 of this Agreement, each decision shall be

signed by the co-chairs of the Joint Committee, including where duly authorised in advance in

accordance with any applicable legal procedures, if required.

8. Subject to paragraph 4 of Article 16 of this Agreement, decisions adopted by the Joint

Committee shall specify the date on which they take effect.

RULE 12

Protection of personal data

The publication of documents referred to in Rules 9, 10, and 11 shall be made in compliance with

both Parties' applicable data protection rules, including the protection of personal data.

EU/CA/Annex I/en 9

RULE 13

Working parties and advisory bodies

1. In accordance with paragraph 4 of Article 15 of this Agreement, the Joint Committee may

decide to establish or dissolve a working party and advisory body at expert level. The Joint

Committee shall determine the composition and duties of each working party or advisory

body and may amend them as needed.

2. A working party and advisory body shall contribute to the work of the Joint Committee and

– –
assist it in the performance of its tasks, including if so tasked by the Joint Committee by

preparing reports or draft decisions for the approval of the Joint Committee. Draft decisions

pursuant to this paragraph shall be considered and developed in accordance with paragraph 2

of Article 16 of this Agreement.

3. A working party and advisory body shall meet as necessary for the performance of its tasks

and shall report to the Joint Committee.

4. The establishment and functioning of a working party and advisory body shall not prevent the

Parties from bringing any matter directly to the Joint Committee.

5. The Rules of Procedure of the Joint Committee shall apply _mutatis mutandis_ to a working

party and advisory body established by the Joint Committee.

EU/CA/Annex I/en 10

RULE 14

Languages

The working language of the Joint Committee shall be English.

RULE 15

Expenses

1. Each Party shall cover the expenses it incurs for the participation in the meetings of the Joint

Committee and the established working parties and advisory bodies.

2. Expenses in relation to the organisation of meetings shall be borne by the Party that hosts the

meeting.

________________

EU/CA/Annex I/en 11

PROTOCOL

ON THE ASSOCIATION OF CANADA

TO HORIZON EUROPE – THE FRAMEWORK PROGRAMME

FOR RESEARCH AND INNOVATION (2021-2027)

EU/CA/P/en 1

ARTICLE 1

Scope of the association

Canada shall participate as associated country in and contribute to Pillar II "Global Challenges and

European Industrial Competitiveness" of the Horizon Europe Programme - the Framework

Programme for Research and Innovation (hereinafter referred to as "the Horizon Europe

Programme") referred to in paragraph 1(b) of Article 4 of Regulation (EU) 2021/695 of the

European Parliament and of the Council **[1]**, and implemented through the specific programme

established by Council Decision (EU) 2021/764 **[2]**, in their most up-to-date versions.

ARTICLE 2

Additional conditions of participation in the Horizon Europe Programme

1. Before deciding on whether Canadian entities are eligible to participate in an action related to

Union strategic assets, interests, autonomy or security under paragraph 5 of Article 22 of Regulation

(EU) 2021/695, the European Commission may request specific information or assurances, such as:

(a) information on whether reciprocal access has been or will be granted to Union entities to

existing and planned programmes, projects, or activities, or parts thereof, of Canada

equivalent to the Horizon Europe Programme action concerned;

**1** Regulation (EU) 2021/695 of the European Parliament and of the Council of 28 April 2021

–
establishing Horizon Europe the Framework Programme for Research and Innovation,
laying down its rules for participation and dissemination, and repealing Regulations
(EU) No 1290/2013 and (EU) No 1291/2013 (OJ EU L 170, 12.5.2021, p. 1).
**2** Council Decision (EU) 2021/764 of 10 May 2021 establishing the Specific Programme

–
implementing Horizon Europe the Framework Programme for Research and Innovation, and
repealing Decision 2013/743/EU (OJ EU L 167I, 12.5.2021, p. 1).

EU/CA/P/en 2

(b) information on whether Canada has in place a national investment screening mechanism and

assurances that Canadian authorities will report on and consult the European Commission on

any possible cases where in the application of such a mechanism they have become aware of

planned foreign investment or takeover by an entity established or controlled from outside

Canada of a Canadian entity which has received Horizon Europe Programme funding in

actions related to Union strategic assets, interests, autonomy or security, provided that the

European Commission provides Canada with the list of the relevant Canadian entities

following the signature of grant agreements with these entities; and

(c) assurances that none of the results, technologies, services and products developed under the

actions concerned by the Canadian entities shall be subject to restrictions on their export to

Member States of the Union during the action and for four years after the end of the action.

Canada will share an up-to-date list of subjects of national export restrictions on an annual

basis, during the action and for four years after the end of the action.

2. Canadian entities may participate in the activities of the Joint Research Centre (JRC) under

terms and conditions equivalent to those applicable to Union entities unless limitations are

necessary to ensure consistency with the scope of participation stemming from the implementation

of paragraph 1 of this Article.

3. If the Union implements the Horizon Europe Programme through the application of

Articles 185 and 187 of the Treaty on the Functioning of the European Union, Canada and

Canadian entities may participate in the legal structures created under those provisions, in

conformity with the Union legal acts that have been or will be adopted for the establishment of

those legal structures.

EU/CA/P/en 3

4. Canada shall be kept regularly informed of JRC activities relating to Canada's participation in

the Horizon Europe Programme, in particular of JRC multi annual work programmes. A

representative from Canada may be invited as observer to meetings of the JRC Board of Governors

in relation to a point that concerns Canada's participation in the Horizon Europe Programme.

5. In view of Canada's participation in Pillar II of the Horizon Europe Programme,

representatives of Canada shall have the right to participate as observers in the committee referred

to in Article 14 of Decision (EU) 2021/764, without voting rights and for points which concern

Canada when the committee discusses issues pertaining to implementation of Pillar II of the

Horizon Europe Programme. Such participation shall be in accordance with Article 5 of this

Agreement. Travel costs of the representatives of Canada to the meetings of the committee shall be

reimbursed in economy class. For all other matters, the reimbursement of travel costs and

subsistence expenses shall be governed by the same rules as applicable to representatives from

Member States of the Union.

6. Each Party shall, in accordance with its legislation and regulations, seek to facilitate the entry

and temporary stay of persons participating in the activities covered by this Protocol, including for

visits and the conduct of research, as well as the cross-border movement of goods and services

intended for use in such activities.

7. Equipment provided by the sending Party for carrying out joint activities covered by this

Protocol shall be considered to be scientific and not to have a commercial character, and the

receiving Party shall work toward obtaining duty-free entry for such equipment in accordance with

its international obligations and domestic law.

EU/CA/P/en 4

ARTICLE 3

Reciprocity

1. Legal entities established in the Union may participate in programmes, projects and activities

of Canada equivalent to those under Pillar II of Horizon Europe Programme, in accordance with the

Canadian law and measures.

2. The non-exhaustive list of the equivalent programmes, projects and activities of Canada

which are reciprocally open to legal entities established in the Union is set out in Annex II to this

Protocol.

3. Funding of legal entities established in the Union by Canada shall be subject to Canadian law

and measures governing the operation of research and innovation programmes, projects, and

activities. Where funding is not provided, legal entities established in the Union may participate

with their own means.

ARTICLE 4

Open Science

The Parties shall mutually promote and encourage Open Science practices in their programmes,

projects, and activities in accordance with the rules of the Horizon Europe Programme and relevant

Canadian measures.

EU/CA/P/en 5

ARTICLE 5

Detailed rules on financial contribution, adjustment mechanism

and automatic correction mechanism

1. Rules governing the financial contribution of Canada to Pillar II of the Horizon Europe

Programme are set out in Annex I to this Protocol.

2. An automatic correction mechanism shall apply in relation to the operational contribution of

Canada to the Horizon Europe Programme. The adjustment mechanism provided for under Article 7

of this Agreement shall not apply in relation to the operational contribution of Canada to the

Horizon Europe Programme.

3. The automatic correction mechanism shall be based on the performance of Canada and

Canadian entities in the parts of Pillar II of the Horizon Europe Programme which are implemented

through competitive grants.

4. Detailed rules for application of the automatic correction mechanism are laid down in Annex I

to this Protocol.

ARTICLE 6

Suspension by mutual consent

1. If the amount calculated by the European Commission upon a request from Canada in

year N+2, in accordance with the method set out in Article 8 of this Agreement, is higher than 20 %

of the corresponding operational contribution in year N, Canada may request that the application of

this Protocol to this Agreement be suspended for the financial year following the year in which the

request is made.

EU/CA/P/en 6

2. If a request for suspension is made by Canada pursuant to paragraph 1 of this Article, the

Union shall send a written response within 30 days following receipt of the request. If the Union

confirms its acceptance of Canada's request, the suspension of this Protocol shall take effect on the

first day of January of the year following the receipt of the request for suspension.

3. Without prejudice to Article 22 of Regulation (EU) 2021/695 and the exceptions referred to in

paragraph 2 of Article 23 of that Regulation, in the event that this Protocol is suspended pursuant to

paragraph 2 of this Article, Canadian entities shall not be eligible to participate in award procedures

financed from commitment appropriations of the financial year for which this Protocol is

suspended.

4. For the year during which this Protocol is suspended pursuant to paragraph 2 of this Article

and for which Canada would have paid a participation fee if not suspended, Canada shall not pay

the operational contribution. However, Canada shall pay an annual participation fee for the

suspended year corresponding to the participation fee of the year before the suspension took effect

increased by 1.0 percentage point.

5. Canada may request at any time that the suspension pursuant to paragraph 2 of this Article

cease. The Union shall send a written response within 30 days following receipt of this request.

Upon the Union accepting Canada's request, the suspension shall cease to have effect on the first

day of the following year or, retroactively, as of the first day of the ongoing year if jointly decided

by the Parties. If the suspension ceases retroactively, the full financial contribution for the

corresponding year shall be due by Canada. Any annual participation fee already paid by Canada

for the respective year shall be offset against the participation fee calculated in accordance with the

method set out in Article 6 of this Agreement.

EU/CA/P/en 7

6. Canadian entities shall be eligible in award procedures financed from commitment

appropriations of the relevant financial year as from the date on which the suspension ceases to

have effect pursuant to paragraph 5 of this Article provided that the deadlines for submission of

applications have not expired.

7. The suspension in paragraph 2 of this Article does not affect the legal commitments entered

into with Canadian entities under this Protocol before the suspension took effect. The terms of this

Protocol shall continue to apply to such legal commitments.

ARTICLE 7

Final provisions

1. This Protocol shall remain in force for as long as is necessary for all the Union projects,

actions, or activities, or parts thereof, financed from Pillar II of the Horizon Europe Programme, all

the actions necessary to protect the financial interests of the Union and all the financial obligations

stemming from the implementation of this Protocol between the Parties to be completed.

2. The Annexes to this Protocol shall form an integral part thereof.

EU/CA/P/en 8

Annex I: Rules governing the financial contribution of Canada to the Horizon Europe

–
Programme (2021 2027)

Annex II: List of the equivalent programmes, projects, and activities of Canada reciprocally

open to Union entities

EU/CA/P/en 9

**ANNEX I**

Rules governing the financial contribution of Canada to the Horizon Europe Programme

–
(2021 2027)

I. Calculation of Canada's financial contribution

1. The financial contribution of Canada to Pillar II of the Horizon Europe Programme shall be

established on a yearly basis in accordance with Article 6 of this Agreement.

2. The participation fee of Canada shall be established and phased in according to Article 6 of

this Agreement.

3. The operational contribution of Canada to Pillar II of the Horizon Europe Programme for the

years 2024 to 2027 shall be as follows:

– 2024 – €16.1 million;

– 2025 – €21.4 million;

– 2026 – €26.8 million;

– 2027 – €32.1 million.

EU/CA/P/Annex I/en 1

II. Automatic correction of Canada's operational contribution

1. For the calculation of the automatic correction as referred to in Article 8 of this Agreement

and Article 5 of this Protocol, the following modalities shall apply:

(a) "Competitive grants" means grants awarded through calls for proposals launched under

Pillar II of the Horizon Europe Programme where the final beneficiaries can be

identified at the time of the calculation of the automatic correction. Financial support to

third parties as defined in Article 204 of the Financial Regulation is excluded.

(b) Where a legal commitment is signed with a consortium, the amounts used to establish

the initial amounts of the legal commitment shall be the cumulative amounts allocated

to beneficiaries that are Canadian entities in accordance with the indicative budget

breakdown of the grant agreement.

(c) All amounts of legal commitments corresponding to competitive grants shall be

established using the European Commission electronic system eCorda and be extracted

on the second Wednesday of February of year N+3.

(d) "Non-intervention costs" means costs of the Programme other than competitive grants,

including support expenditure, programme-specific administration, other actions [1] .

**1** Other actions include in particular procurement, prizes, financial instruments, direct actions of
the JRC, subscriptions (the Organisation for Economic Co-operation and Development
(OECD), the European Research Coordination Agency (Eureka), the International Partnership
for Energy Efficiency Cooperation (IPEEC), the International Energy Agency (IEA), etc.),
and experts (evaluators, monitoring of projects).

EU/CA/P/Annex I/en 2

(e) Amounts allocated to international organisations as legal entities being the final

beneficiary [1] shall be considered to be non-intervention costs.

2. The automatic correction mechanism shall be applied as follows:

(a) Automatic corrections for year N in relation to the execution of commitment

appropriations for year N, increased in accordance with paragraph 5 of Article 6 of this

Agreement, shall be applied on the basis of data on year N, year N+1, and year N+2

from e-Corda referred to in paragraph 1(c) of section II of this Annex in year N+3. The

amount considered will be the amount of competitive grants under Pillar II of the

Horizon Europe Programme for which data are available, at the time of the calculation

of the correction.

(b) Starting in N+3 and up until 2030, the amount of the automatic correction shall be

calculated for year N by taking the difference between:

(i) the total amount of the competitive grants apportioned to Canada or Canadian

legal entities under Pillar II of the Horizon Europe Programme as commitments

made on budget appropriations of year N; and

**1** International organisations would be considered to be non-intervention costs only if they are
final beneficiaries. This will not apply where an international organisation is a coordinator of
a project (distributing funds to other coordinators).

EU/CA/P/Annex I/en 3

(ii) the amount of Canada's operational contribution for year N multiplied by the ratio

between:

A. the amount of competitive grants made on commitment appropriations of

year N under Pillar II of the Horizon Europe Programme, increased in

accordance with paragraph 5 of Article 6 of this Agreement; and

B. the total of all the authorised budgetary commitment appropriations of

year N under Pillar II of the Horizon Europe Programme, including

non-intervention costs.

III. Payment of Canada's financial contribution and payment of the automatic correction

applicable to the Canada's operational contribution

1. The European Commission shall communicate to Canada, as soon as possible and at the latest

when issuing the first call for funds of the financial year, the following information:

(a) the amount of the operational contribution referred to in paragraph 3 of section I of

this Annex;

(b) the amount of the participation fee referred to in paragraph 9 of Article 6 of

this Agreement;

EU/CA/P/Annex I/en 4

(c) from year N+3 for the part of the Horizon Europe Programme where such information

is necessary to calculate the automatic correction, the level of commitments entered into

in favour of Canadian legal entities under Pillar II of Horizon Europe Programme

broken down according to the corresponding year of budgetary appropriations and the

related total level of commitments.

2. The European Commission shall issue, at the latest in June of each financial year, a call for

funds to Canada corresponding to its contribution under this Protocol. The call for funds shall

provide for the payment of Canada's contribution not later than 45 days after the call for funds

is issued. If this Agreement is signed after 1 June, for the first year of implementation of this

Protocol, the European Commission shall issue a single call for funds, within 60 days of the

signature of this Agreement. Each year, starting in 2027, the call for funds shall also reflect

the amount of the automatic correction applicable to the operational contribution paid for

year N-3. For each of the financial years 2028, 2029, and 2030, the amount resulting from the

automatic correction applied to the operational contributions paid in 2025, 2026, and 2027 by

Canada will be due to or from Canada. Canada shall pay its financial contribution under this

Protocol in accordance with section III of this Annex. In the absence of payment by Canada

by the due date, the Commission shall send a formal letter of reminder. The interest rate for

amounts receivable not paid on the due date shall be the rate applied by the European Central

Bank to its principal refinancing operations, as published in the C series of _the Official_

_Journal of the European Union_, in force on the first calendar day of the month in which the

due date falls, increased by 3.5 percentage points.

EU/CA/P/Annex I/en 5

3. Provided that Canada does not associate to the next Framework Programme for Research and

Innovation, when the amount resulting from the automatic correction will be due from

Canada, the European Commission shall issue, at the latest in June of each of the financial

years 2028, 2029, and 2030, a call for funds to Canada, which shall issue a payment in favour

of the European Commission within a period of 6 months from the date of issuing the call for

funds. Should the amount resulting from the automatic correction be due by the European

Commission to Canada, Canada shall submit a request for payment to the European

Commission, which shall issue a payment in favour of Canada within a period of 6 months

from the date of issuing the request for payment. Any delay in the payment of the amounts

referred to in paragraph 2 of section III, shall give rise to the payment of interest on the

outstanding amount by Canada or to Canada as of the due date for payment. The interest rate

on the amounts receivable not paid on the due date shall be the rate referred to in paragraph 2

of section III.

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EU/CA/P/Annex I/en 6

**ANNEX II**

List of the equivalent programmes, projects, and activities of Canada

reciprocally open to Union entities

The following non-exhaustive list shall be regarded as Canada's, programmes, projects, and

activities equivalent to Pillar II of Horizon Europe Programme:

– Canada Research Coordinating Committee (CRCC) – New Frontiers in Research Fund

(NFRF): Exploration, International, Transformation, Special Calls;

–
Natural Sciences and Engineering Research Council (NSERC): Alliance grants, Alliance

International grants, Alliance International Quantum grants; Collaborative Research and

Training Experience (CREATE) Quantum Call;

–
Social Science and Humanities Research Council of Canada (SSHRC): Partnership Grants.

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EU/CA/P/Annex II/en 1