Brussels, 18/03/2013 (Agence Europe) - Continued disagreement on a handful of difficult issues - including agriculture - could delay the conclusion of negotiations, however.
Canada still hopes to conclude a free trade agreement with the EU by the end of the year even though major disagreement persists, which could delay this, said Canadian Minister for Trade Ed Fast in an interview with Reuters in New York on 13 March. “It's a very small handful of issues that are difficult. We are trying to identify some creative ways in bridging the gaps between our positions”, Fast said, declining to say which issues were causing the delay in the negotiations. “Understand that it is the quality of the agreement and not a particular calendar date”, Fast said, warning once again that Canada will only sign an agreement if its long-term interests are taken into account.
After nine rounds of negotiations and two ministerial meetings, the negotiations - which were started in 2009 and entered their final phase in autumn 2012 - are slipping. Canada's demands with regard to agriculture are one of the reasons for the failure of the parties to conclude the negotiations at the second meeting between Fast and European Commissioner for Trade Karel De Gucht in Ottawa at the beginning of February. Their trade-offs stumbled particularly on the chapter on access to the agricultural market - Canada has an ambitious demand on tariff quotas for its beef and pork exports, while the EU wants a wide opening of the Canadian market for EU dairy products (especially cheese). Besides the agricultural chapter, other important issues under negotiation as far as the European side is concerned are pharmaceutical products and access to public procurement.
Hosting French Prime Minister Jean-Marc Ayrault in Ottawa on 14 March, his Canadian counterpart, Stephen Harper, stressed Canada's interest in tying up an agreement with the EU before beginning its negotiations with the United States. “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”, Harper said. “It will not be without influence in terms of the current negotiations taking place between the European Union and the United States”, Ayrault acknowledged, mentioning agriculture and intellectual property amongst the major obstacles to concluding an agreement with Ottawa. “Things are progressing well”, Ayrault assured, adding that “the most sensitive issues have to do with balanced exchanges in the agricultural sector”.
The comprehensive economic trade agreement (CETA) aims at increasing bilateral trade by 20% (bilateral trade stood at over €52.5 billion for goods in 2011 and over €20 billion for services in 2010) and at stimulating already significant investment flows between the two partners. EU investment stock in Canada reached €197.4 billion in 2010, while Canadian investment stock into the EU stood at €143.1 billion. (EH/transl.fl)