7 June 2007

 

 

 

Federal Trade Minister David Emerson is expected to announce Thursday that Ottawa is wrapping up free-trade talks with four European countries: Norway, Switzerland, Iceland and Liechtenstein….

 

He is also expected to announce that Canada is commencing similar negotiations with Peru and Colombia.

 

A successful conclusion of talks with Norway and its other three partners in the European Free Trade Association would mark the first free-trade accord that Canada has signed in six years.

 

It would also be a sign, however small, that Ottawa is serious about gaining ground in the global race to sew up preferential commercial partners.

 

Such an agreement would build on $11-billion of existing annual commerce with the four members of the European Free Trade Association (EFTA), all countries that have so far avoided joining the European Union.

 

Mr. Emerson is expected announce the conclusion of talks with EFTA at what the Harper government is calling “Trade Day” on Thursday.

 

The European Free Trade Association deal would be a boon for the Harper government, which will sell it as more proof — in addition to the Canada-U.S. softwood dispute truce — that it has succeeded where its Liberal predecessors have failed.

 

One obstacle the Conservatives must overcome is fear about the impact of an agreement on Canada's shipbuilding industry: the very hurdle that stalled late-stage EFTA deal talks in 2000 under then-prime minister Jean Chrétien's watch.

 

Under the Liberals, Ottawa was reluctant to scrap its 25-per-cent duty on foreign-made ships and wanted to retain the right to subsidize its domestic shipbuilding industry — a sticking point for Norway, an exporter of marine vessels.

 

To that end, the Conservatives have also scheduled a shipbuilding announcement for Thursday in Halifax, an event they are expec