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CCCA_V6No2_BusinessInEU-FIN_CCCA_V6No2_BusinessInEU 5/24/12 12:08 AM Page 33 Feature “amazing market in which to sell and be present,” says Emilie and provides clear-cut uniformity [across Europe],” says Bourgeois, a private practice lawyer seconded as in-house coun- Bourgeois. It’s a single law that requires manufacturers to regis- sel with Agrium Europe in Brussels. “The work force is indeed ter with one agency in Helsinki that sets uniform rules on pack- very skilled and many employees speak two or even three lan- aging and labelling and is fully applicable in all EU member guages. They also have a tremendous capacity to adapt.” states. But the firm still must navigate a regulatory maze of rules An EU presence also has opened doors for Florenceville, N.B.- and regulations in other key areas. based McCain Foods Limited, which has manufacturing facilities “The EU is a single market that’s aiming to uniform-ize all in Belgium, France, the Netherlands and Poland along with divi- laws, but we’re not yet there,” she says. “While we have a uniform sions in 13 other European countries. “Europe is a place from system in REACH, a single set of data protection laws, a com- which a lot of other markets open up, including Africa, the Middle mon trade policy, competition legislation, certain uniformized East, Eastern Europe and Russia,” says Christa Wessel, the compa- consumer rights, there are local, national laws when it comes to ny’s chief legal officer in Toronto. Furthermore, it’s a prime loca- labour and intellectual property or administrative requirements, tion in which to produce, she adds: “There are parts of Belgium for instance.” She notes that when Agrium purchased and northwestern Europe that are prime potato-growing regions. CerealToscana S.A., a fertilizer distribution company in Italy, and “ It’s a different marketplace and like any foreign market, you need a significant amount of ” intelligence to figure out how it works. James Klotz, Co-chair, International transactions group, Miller Thomson, Toronto And from a resource perspective, this is really valuable because we its Romanian subsidiary, Agroport, last year, she was surprised by have a number of plants that export to other markets, such as what was required to have official Italian documents recognized South America, as it’s very cost-effective.” by the Belgian authorities — and vice versa. All of these opportunities come with challenges, especially Dealing with multiple layers of regulations requires a disciplined when it comes to keeping up with regulations. Europe has an approach. “From an infrastructure perspective, there are some “overabundance of regulations that keep changing,” Desjardins things that are covered by our legal team in the European head points out, with a profound impact on business. For example, the office and other things by the legal teams in each individual coun- EU’s Emissions Trading Scheme (ETS) has created numerous try. It’s a hybrid of the two,” says Wessel of McCain’s arrangement. obligations for commercial and business aircraft operators and “And because there’s no law firm that’s in all European countries, places a cap on their CO2 emissions, which in turn has posed we’ve had to create a quilt of law firms to rely on.” significant challenges for Bombardier and many of its clients. The transportation conglomerate also must contend with the Think local EU’s regulation on Registration, Evaluation, Authorization and Some advance preparation can help firms avoid the pitfalls associ- Restriction of Chemicals (REACH). The provisions, which ated with expanding to the EU or acquiring a company there. became law on June 1, 2007 and consist of thousands of pages, are “Canadian companies tend to assume — even though there’s a being phased in over 11 years — “and we’re all struggling to language barrier — that Europe is a very familiar market and [as understand it and master it,” Desjardins says. a result], they don’t do their homework on the regulatory envi- Companies with manufacturing capabilities or that sell envi- ronment,” says James Klotz, partner and co-chair of Miller ronmentally sensitive goods must stay on top of a plethora of Thomson’s international business transactions group in Toronto. environmental regulation. Sometimes, that can be difficult. “You can do a lot of business in Europe before tripping over the “When we manufacture a train, it takes two to three years [to laws; it’s not that uncommon to see. It’s a different marketplace and complete], but regulations could change around you in the like any foreign market, you need a significant amount of intelli- meantime,” says Desjardins. “Also, in our market of transporta- gence to figure out how it works.” tion and aerospace, there’s an abundance of regulations not only Some recommend the approach taken by many European at the EU level, but at the national and local levels as well, and companies. “Hire someone who’s connected and understands the we have to navigate through all of them.” local environment and is prepared to build a team to work there,” For Agrium’s European division, REACH is “an advantage says Jason Langrish, executive director of the Canada Europe ÉTÉ 2012 CCCA Canadian Corporate Counsel Association 33