Brussels, 22/05/2007 (Agence Europe) - At the EU-Canada summit in Berlin on 4 June, Canadian Prime Minister Stephen Harper is expected to speak to his German counterpart and president of the European Council, Angela Merkel, about opening talks on a new bilateral free trade agreement. According to the director of the Quebec Mission to the EU, Christos Sirros, quoted by several press agencies, Canadian Trade Minister David Emerson, in a letter sent on 10 May to Ms Merkel, Commission President José Manuel Barroso and Trade Commissioner Peter Mandelson invited the latter to begin preparations for negotiations on a new economic partnership agreement. In his letter, Mr Emerson said that the EU and Canada should agree on a new trade pact to improve reciprocal market access and enhance cooperation to reduce non-tariff barriers and harmonise European and Canadian regulations and standards.
The Commission and the Canadian authorities have been in discussion for three years on the terms of an agreement to reduce administrative formalities for investors and transatlantic companies and to create new investment opportunities: the Trade Investment and Enhancement Agreement (TIEA), negotiations on which started in 2004 (see EUROPE 8670, 8853 and 8949) then were suspended last year while awaiting the conclusion of multilateral negotiations of the Doha Round. However, Canada, which wishes to improve its trade relations with the EU to counterbalance its dependence with regard to the United States, and which is somewhat concerned over the EU's bilateral commitments towards the emerging Asian economies, now wants to complement the Euro-Canadian agreement being negotiated with an agreement on increased market access. Just as at the EU-US summit, reduction of regulatory barriers between the EU and Canada (4.5% on average) is expected to be at the heart of the economic issues to be discussed at the Berlin summit. On Mr Emerson's initiative, the parties could carry out a feasibility study on reducing non-tariff barriers, which could open the way for talks on a new trade and investment agreement.
The EU is Canada's second largest trading partner, after the US, while Canada is only the EU's 9th largest partner. Bilateral trade was worth 90 billion Canadian dollars in 2006. (eh)