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EU members approve free-trade talks with Canada

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Date: Monday Apr. 27, 2009 7:51 PM ET

LUXEMBOURG — The European Union endorsed plans Monday 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.

"The new economic agreement will bring new opportunities for business," said Czech Deputy Prime Minister Alexandr Vondra, whose country holds the EU presidency.

The trade deal 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.

Quebec Premier Jean Charest, a main proponent of closer Canada ties with Europe, has said a trade deal is the best way to protect jobs and to counterbalance Canada's dependence on the American market.

EU foreign ministers approved the mandate for the talks Monday.

A study evaluating the benefits of closer economic ties concluded a deal could open up trade worth $18 billion Cdn 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.

Negotiations will involve not only the Canadian federal government but also provincial and territorial officials, who are responsible for many of the issues involved.

The expected launch of negotiations will also come a day after the European Parliament is expected to pass a resolution calling for a limited ban on seal products from Canada, to protest the annual seal hunt off Canada's Atlantic coast, which EU legislators find cruel and inhumane.

Traditional Inuit hunts in Canada's Arctic would be exempt.

Canadian officials said such a move could damage ties and has threatened to take the EU to the World Trade Organization claiming such a ban would be illegal under world trade rules.

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.

Comments are now closed for this story

Jillian in Airdire
said

This will be awesome for Canada's economy! It is fantastic that they are banning seal products trade. That way there will not be any sport with clubbing baby seals in Antartica/Alaska.


Mark in NB
said

Don't get all warm and fuzzy everyone.

There is a reason that France, England, Portugal, Spain etc lost thier colonies. They wanted free trade (take resources) and still have control (fine print ala lumber with the USA).

If we think the US is bad wait for the EU to pile on. I trust the EU less than the US and it just sucks to say that.

Part of the "negotiations" should include agricultural subsidies and the EU's protectionist policies. But alas, we'll probably get the shaft on this one. Hopefully we get a referendum like the Free Trade with the US.


cam
said

Linda in Vancouver

Good points but logic holds no sway over proponents of open borders.It is all about multi-nationals bottom line and they have the peons drinking the cool-aide big time.


Al in NB
said

I don't trust the EU any farther than I can throw it. Sure, we need to diversify trade but we should look within Canada first. How about tearing down interprovincial trade barriers before tearing down international ones?


GHW
said

I agree with Al that it was mostly foreign fishing that depleted stocks. I know this because Stan Rogers told me. I’ll also concede that the Federal Government sold out or wouldn’t or couldn’t do anything to stop foreign fishing but the fact still remains that there are no more fish and killing seals is not the answer. I’m not a vegan or a vegetarian for that mater but killing seals for minor increase in a dying industries profit is wrong.


Frank (Toronto)
said

This is a positive move. Opening up markets is always a good thing.

And I agree with Red X. We need to expand out trade relations with the Asia-Pacific region.... especially when it comes to automobiles. Why Japan, and Korea are able to flood our market with their vehicles, while North American automakers are shut out of countries over there doesn't seem right.....


Red X
said

Dean the EU is aging and running out of places to expand. They will need reliable resources and energy security given the bruha with Gazprom. A substitute OR alternative is keep your options open and vice versa...


Raj
said

Great new! well done Harper., he had a lot to do wth this.


Linda in Vancouver
said

I think GHW is missing the boat here.On the issue of "free trade",there is nothing "free" about trade with the EU.The highest farms subsidies on the planet on agricultural products out.
But even worse,regardless of how you feel about the seal hunt,the real point is that any decision on how to manage it,is a decision to be MADE IN CANADA.There is no issue in within Canada that could induce me give ANY foreign government the right to impose their will on Canadians.That,GHW,would be the real "joke" to which you refer.Especially if it's the EU who gets to "stand on guard" over us.That is just plain crazy!
You must be forgetting that it's EU support that has NATO in Afghanistan.But of course,in a real European style,it's "that other guy" who gets to do the dirty work.
On the positive side,like the west has become used to being a colony of Ontario,I now see a Canada once again being a European colony,and a slave to their wishes.
Trade? Certainly.But just like FTA with the USA,watch for the fine print.They will expect to come out on top every time.Maybe even more than the Americans.They still see us as the colonies in need of their guidance.


Ian in Ottawa
said

The European Parliament will pass a resolution for a limited ban on seal products, the day before negotiations. Brilliant move on the part of the EU. They said it clearly in the article: the EU is Canada's 2nd largest trading partner and Canada is the EU's 11th. They are telling us that if we want a good deal out of these negotiations, we need to do something about our seal hunting. Normally I'm fairly critical of seal hunt protesters like Paul McCartney, but in the end, I don't really care about seal hunting. What I care about is the overall state of our economy. If the price is a stop to seal hunting, then so be it. Seal hunters can adapt like everyone else losing their jobs right now.


Doug BC
said

I'm a HUGE fan of more diversty for our foreign markets,and Europe is a part of that.BUT,anyone who thinks the USA is a bully in the marketplace,and in deep financial trouble is going to be sorely disappointed if they think Europe is going to be any better.What a mess they are in.Banks are failing,socialism is the rule,arguing and bickering are the norm,and they DEMAND that trade partners do things their way,or get out of the way.
I don't want Canada to be like the USA,for sure.But being beholden to European nations would likely be much worse.There."it's their way,or the highway".Like the USA,they will want to be "THE BOSS",and they will bring down the hammer on everything that offends their bizzare sensibilities.
They are the masters of protectionsim and self interests.They will argue that it is continental Europe and NOT Toronto,that is the centre of the universe to which we should all bow down.


Al
said

To GHW,
Your comment taps into the ignorance of knowing what the fishing industry is all about. It wasn't the Canadian fisherman who depleted the stocks on our east coast. Our own Canadian government was the sole cause of it demise, by selling out to foreign fishing and doing nothing about the overfishing. As for the EU we don't need them. If anything they need us more than we need them. Why we would even negotiate while they are against the seal hunt is beyond me, but then again the Feds have no problem sacrificing the east coast to appease Quebec and Ontario.


Ronald in Toronto
said

This would be to everyone's benefit.

Meanwhile, we'll stop clubbing seals when the Irish stop shooting snakes.

Wait a sec.....


Dean
said

Instead of negotiating, why don't both sides just say that as of "x" date, all trade barriers are to become non-existant? A negotiation will clearly benefit one party more than another.


Red X
said

Canada should explore improved trading relations with the EU AND the Asia Pacific region.

NAFTA has benefitted the U$ with resources to the north and labour to the south. Canada must move beyond this SHAFTA because the lumber issue is back even though Canada keeps winning and the Conservatives gave up $1 Billion to the lumber protectionists...


david sawkiw[saskatchewan farmer]
said

I find it odd that our government now shows interest in agriculture on the international stage, and yet in the last budget they NEGLECTED AGRICULTURE!!!!

That really scares me,, now our government wants to export its cheap food policy to europe,, download it all to MY farmgate and force me to feed a hungry world for free.

I am tired of living the life of a pauper to feed canadian freeloaders, and now harper wants me to do it for the rest of the world???


Tono
said

Excellent!
That's right: Canada does need to increase its trade with Europe and decrease its trade with the USA.




Miramichi Kid
said

It is definitely in Canada's best interest to enhance trade among other countries alternatively to USA. The USA has chosen a route to poverty. Canada must choose a route to prosperity; Jean Charest should be commended.


GHW
said

This is good news for Canada. We need to diversify our trade and the EU is a great way to do this. The high value of the EURO makes the EU an attractive market for us.

As for the seal hunt issue, I don’t understand why we’re not putting a stop to this. The fishing industry claims the seals compete with there livelihood. This is a joke. They strip mine the ocean of all the fish and now that there’s little to no fish left. All of a sudden it’s the seals fault? There is no future in the fishing industry, move on… Let the seals live and eat something else.



YA from Toronto ON
said

Thank God, there is world outside American continent. To prosper, we must use EU and use their market. It will not only allow us to sell our product there but here at home some item prices will also fall.

Or at least that is what I hope occurs. We have been depending on US for too long. At times they've used their muscles to squeeze us. At times its been a fair game while other times its been, well least to say unfair. Good to go Canada and EU. There is only good time for both of us. Let’s get it done.


Dan from Northern Ont
said

Banning seal products over feel good politics doesn't bode well for trade relations.


Stephane
said

This will be great, concidering the state of the economy right now. This will benefit us both. It will also make it easier for Fiat to do the buyout.


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