27 April 2009

EU approves free-trade talks with Canada

The following is extracted from today's edition of “globeandmail.com”.

The European Union endorsed plans today to open negotiations with Canada on a new free-trade pact.

The negotiations, which could last two years, are to be officially launched at an EU-Canada leaders summit May 6, in Prague.

EU Trade Commissioner Catherine Ashton said launching the talks “sends a signal that the European Union remains committed to trade and open markets at a time of economic crisis and rising protectionist sentiment.”

The “enhanced” trade deal will aim to open up trade in numerous areas including investment services, government procurement and agriculture goods. It will also aim to include a first-time agreement to allow the temporary movement of workers between Canada and the 27-member bloc and include efforts to bring into line regulatory rules on everything from copyright to food and animal safety rules….

A study evaluating the benefits of closer economic ties concluded a deal could open up trade worth $18 billion a year for the European Union and $13 billion annually for Canada. It said both sides could profit from closer ties in science and technology and better environmental co-operation….

The EU is Canada's second-largest trading partner after the United States, while Canada is only the EU's 11 most important trading partner.

Interest on the EU side for closer ties is based on getting better access to the North American market, notably to the United States, via its North American Free Trade pact. The EU already has a free-trade deal with Mexico.