Canadian Lawyer InHouse

23 CANADIANLAWYERMAG.COM/INHOUSE NOVEMBER/DECEMBER 2018 rea [a free trade agreement with South Ko- rea came into force in 2015] and there have been recent dialogues with China about a free trade agreement. Obviously, China is the elephant in the room in that the op - portunities and benefits for Canada in en- hancing trade and investment with Asia will likely be the greatest with China. However, for the most part, we are still quite clumsy and lack business and political savvy in the way we deal with China. "The pendulum is swinging in opposite ways," adds Luke. "Traditionally, the Asian market was closed. But they are becoming more open and embracing globalization. Canadian businesses can see that and should be building a strategy." Part of any strategy, he says, should in - clude legal departments putting more re- sources aimed at these markets, most of which are civil law based. "We would get a lot of value if we increase our capacity and ability to understand these foreign markets. It is hard to engage what we don't understand," says Luke. The in - creasing diversity of the legal profession in Canada is an asset in any strategy aimed at new markets, he says. "Build your in-house team. Bring in law - yers from different cultures or with a burn- ing interest in countries such as Japan or Ko- rea," says Luke. "In the long term, you will see the value." As well, while business with China has until recently been mostly trade based, there are now increased investment opportunities as well, he says. Another part of the world where Cana - dian businesses might consider an increased focus is Europe, says Dattu. The Canada- European Union Comprehensive Economic and Trade Agreement came into force in September 2017 and aims to reduce barriers with our second largest trading partner. "Canadian companies should consider al - ternate sourcing as a result of CETA," Dattu says. Here, too, there is a lack of understand- ing about the new agreement and opportu- nities to take advantage of reduced duties, he says. "There has not been any big impact yet, but I hope in the future there will be a move to diversify to the European market. Legal departments should have strategies to adapt to the changing trade rules." The current trade environment may continue to cause stress for Canadian busi - nesses and their internal legal departments. However, according to Dattu, there are also some positive aspects. "More businesses in Europe are looking to Canada. It is seen as more of a safe haven, until things are more settled in the U.S.," he says. As well, the increased spotlight on trade regulations is a much-needed wake-up call in the longer term. "This may be a silver lining. We have seen a lot of general counsel now saying 'I better understand these rules.' Boards of directors are starting to ask ques - tions," says Dattu. IH Mobility restrictions remain challenging for a cross-border workforce because trade treaties have not been updated to reflect a very different type of workforce. DAN UJCZO, Dickinson Wright LLP Lydia practised at Baker McKenzie and Cassels Brock & Blackwell LLP. © 2018 Thomson Reuters Canada Limited 00250QW-91913-CE OUR QUALITY STARTS WITH OUR PEOPLE Now her job is to make you better at yours. Practical Law Canada provides legal know-how that gives lawyers a better starting point. Our expert team of lawyer-editors creates and maintains thousands of up-to-date, practical resources across all major practice areas. We go beyond primary law and traditional legal research to give you the resources needed to practise more effi ciently, improve client services, and add more value. REQUEST A FREE TRIAL TODAY 1-844-717-4488 | thomsonreuters.ca/practicallawcanada Untitled-7 1 2018-10-23 2:43 PM

• Cover