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Image header Agence Europe
Europe Daily Bulletin No. 9856
Contents Publication in full By article 19 / 32
GENERAL NEWS / (eu) eu/canada

Further progress towards free trade deal

Brussels, 06/03/2009 (Agence Europe) - After six months of talks following the EU-Canada summit in Quebec in October 2008 (see EUROPE 9765), the EU and Canada have agreed on the scope of a planned free trade deal, announced Canada's Trade Minister Stockwell Day on Thursday 5 March 2009. A working group on the feasibility and benefits of a free trade zone agreed that such a deal would cover trade in goods and services, investment, public tender, trade facilitation, customs procedures, rules of origin, regulatory cooperation, intellectual property and the circulation of manpower. According to Stockwell Day, the EU and Canada are now ready to enter detailed talks, which will involve the Canadian provinces. He suggests the negotiations might start in the next few months. The idea of an EU-Canada free trade deal is backed by 12 of the 13 provinces of Canada, led by Quebec. The prime minister of Quebec, Jean Charest, is the most enthusiastic promoter of the project, describing it as a new economic area (see EUROPE 9836). Charest has not yet, however, managed to convince Newfoundland-and-Labrador, which fear for their fishing industry and whale-hunting (opposed by several EU member states) to join the project. According to a joint economic study, such a deal could lead to a gain of 12 billion Canadian dollars (€7.4 billion) for the Canadian economy and increase trade between the EU and Canada by more than 20%. Ottawa argues that the deal would benefit the Canadian airspace industry, chemicals, aluminium, timber, fisheries and agriculture. The EU is Canada's second biggest trading partner. Trade between the two reached US$90.1 billion in 2008, up 7% on 2007. Canada's exports to the EU rose by 3.5% to US$ 36.1 billion in 2008. (E.H./transl.fl)

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