Canadian Manufacturing

Progress made towards EU trade deal, but obstacles remain

Agreement with Canada would provide momentum for Europe as it undergoes trade talks with U.S.



OTTAWA—”Considerable progress” has been made towards a free trade deal between Canada and the European Union, but there are still outstanding issues that must be settled before an agreement can be finalized, Prime Minister Stephen Harper says.

“There remain some important issues to resolve, and obviously nothing is resolved until everything is resolved,” Harper said during a visit to Ottawa by French Prime Minister Jean-Marc Ayrault.

“Obviously, we will only sign a deal when we’re convinced we have a deal that is comprehensive and in the best interests of the Canadian economy.”

Harper and Ayrault both said an agreement with Canada would be important for the Europeans because it would provide momentum as they embark on separate free trade talks with the United States.

“It would be an added benefit to us to get this done long before the Americans do such a deal,” Harper said.

“For the Europeans, it would be important to get this beachhead to Canada in terms of its own ambitions for a deal with the United States.”

Ayrault said a successful Canada-EU pact could have a positive influence on a future deal with the U.S.

“It will not be without influence in terms of the current negotiations taking place between the European Union and the United States,” he said. “We do hope to be the leaders and give the good example with the success of this negotiation. We will be the precursors.”

Ayrault said the remaining obstacles to the Canada-EU deal are in the agricultural and intellectual property sectors.

Specific hurdles include opening European beef and pork markets and respecting pharmaceutical patents.

“Things are progressing very well,” he said. “The most sensitive issues have to do with balanced exchanges in the agricultural sector.”

Ayrault and Harper discussed the pact during the French premier’s four-city visit to Canada, which began in Ottawa.

Negotiations began almost four years ago.

The Harper government was unable to deliver on its pledge to complete an agreement by the end of 2012.

Last month, the European Union’s trade commissioner said Canada must change its positions for a deal to be struck, but gave no details.

Karel De Gucht told a committee of the European parliament that he hoped the deal would be sealed soon.

Other domestic political hurdles remain for Canada.

Quebec Premier Pauline Marois recently said her Parti Quebecois government could block the agreement if it is deemed unsuitable for her province.

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