Canada Nears FTA With EU

by Mike Godfrey, Tax-News.com, Washington

19 July 2011

Canada and the European Union (EU) have pressed ahead with trade talks, making significant progress with a view to concluding negotiations next year, according to the Canadian Minister of International Trade and Minister for the Asia-Pacific Gateway.

According to Ed Fast, officials from Canada and the EU exchanged ambitious offers on goods and government procurement during the eighth round of free trade negotiations, which were concluded last week in Brussels. Fast added that talks are moving forward with the aim of completing negotiations by 2012. He said: “We are making important progress as we move closer toward an agreement that has the potential to dramatically boost two-way trade and create jobs and prosperity in all regions of Canada.”

Canada's Ministry for Foreign Affairs and International Trade has said that, to date, significant progress has been achieved in all negotiating areas, including goods, services, investment, and government procurement, among others. Offers on services and investment are to be exchanged prior to the ninth round of negotiations, which will take place later in the year.

A 2008 Canada-EU joint economic study argued that a Canada-EU free trade agreement (FTA) could boost Canadian GDP by at least CAD12bn (USD12.5bn). The Ministry has stressed that a deal could also benefit workers in many sectors of the Canadian economy, including aerospace, chemicals, plastics, aluminum, wood products and manufacturing, as well as commodity- and resource-based businesses.

“These negotiations represent our most significant trade initiative since the North American Free Trade Agreement, and while some issues still need to be resolved, our government is vigorously defending Canada’s interests to ensure that any agreement we sign benefits Canadian workers, businesses and their families,” Fast added.

He concluded: “Our government is committed to protecting and strengthening the long-term financial security of hard-working Canadians. Broadening and expanding access to more markets like the European Union is a key part of our job-creating, pro-trade plan.”

Canada has concluded a spate of FTAs in recent years, making eight such agreements since 2006. These are with Colombia, Jordan, Panama, Peru, Iceland, Liechtenstein, Norway and Switzerland. The Canadian government is also in talks with India, and anticipates that an FTA could be worth CAD6bn to the Canadian economy.

The ninth round of talks with the EU is scheduled to take place in Ottawa in October.

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