Brussels, 08/04/2013 (Agence Europe) - The EU and Canada are believed to be close to agreement on the automotive chapter, one of the most controversial chapters of the bilateral free-trade negotiations.
Although Brussels and Ottawa are continuing their efforts to resolve the final stumbling blocks still preventing the conclusion of an economic and trade agreement between the EU and Canada, a solution is believed to be close at hand to resolve the issue of the rules of origin for cars, one of the major pitfalls.
On 5 April, on the basis of a leaked document, The Canadian Press referred to a short-term solution on the automotive chapter, which lays down a quota for Canadian cars which can be exported to the European market without penalties. The negotiators frequently fell back on quotas to seek to resolve certain points of variance. It is believed that Canada suggested a quota of 100,000 cars a year, but there is nothing to indicate whether the EU will accept this proposal, the Canadian newspaper said.
Quotas may be phased out in favour of another scenario in the longer term, if Canada, the EU and the US manage to agree on Canadian content. The discussions are complex, because it will then be necessary to determine how to take account of the American content of Canadian vehicles exported to Europe. Once this clause has been sorted out, quotas may be replaced with a provision for cars built in Canada to contain no more than 40% of foreign materials, not including American content. A provision of this kind would mean that the European negotiators are recognising the major level of integration between the economies of the two countries, The Canadian Press explains.
In the home straight since late 2012, EU-Canada negotiations are struggling, with the most controversial issues remaining outstanding, including access to the agricultural market - export quotas for European cheeses to Canada and the opening-up of the European market to beef and pork, Canadian pharmaceutical patents and access to Canadian public procurement contracts. Stating in late March that the negotiations were nearing their end, Canadian Trade Minister Ed Fast declined to predict a date for the final flourish, but pledged that both sides were working towards “creative solutions”. According to a European source, contact between the Commission and the Canadian administration is “very much back on” following the Easter break. The parties are expected to take stock of progress at negotiator-in-chief level early this week. (EH/transl.fl)