Brussels, 07/05/2009 (Agence Europe) - Despite deep division over the trade in seal products, the EU and Canada launched negotiations on a new bilateral economic pact during their annual summit held in Prague on 6 May. Czech Prime Minister Mirek Topolánek and European Commission President José Manuel Barroso, for the EU, and Canadian Prime Minister Stephen Harper marked the conclusion of the bilateral air transport agreement initialled in November 2008.
European and Canada leaders, determined to quell the economic and financial crisis and to prevent protectionism, gave the go-ahead for negotiations on a full economic partnership agreement between Europe and Canada to be concluded within two years. As outlined in the Joint Report on the EU-Canada Scoping Exercise, released in March 2009, such an agreement will provide for liberalisation of trade in goods and services, enhanced market access, investment provisions and improved rules on trade-related issues. In addition to approval of enhanced bilateral trade relations, the two parties also repeated their commitment to reaching an ambitious, comprehensive and balanced conclusion to the Doha Round.
The launch of negotiations on a new economic pact was approved the day after the European Parliament vote banning the import and sale within the EU of seal products, a move immediately denounced by Ottawa, vowing to take the matter to the WTO if no exception is made for Canada's “humane and sustainable” hunting (see EUROPE 9896). Harper, however, insisted that this difference must not be allowed to spoil the summit and prevent the parties reaching their major objectives. “Canada has been trying since the '70s to negotiate a wide-ranging trade pact with the EU. This negotiation comes as a ray of sunshine in the middle of the world economic storm. It provides an important message against the threat of protectionism in this period of recession,” he said. Barroso also highlighted how important it was for these two major world economic players to resist protectionism and to work for open markets. Harper nevertheless promised that Canada would continue its efforts to defend seal hunting practised by very poor traditional communities in international bodies, such as the WTO. Indicating that he was aware of Canadian concerns, Barroso gave assurances that the legislation adopted by the European Parliament “fully complies with WTO rules”. “This is not a protectionist step, but one which reflects our concerns over animal welfare,” he said.
In energy and climate change, both Europeans and Canadians said once again that they were committed to dialogue, in particular on energy efficiency, renewables and clean technologies, such as carbon capture and storage, and to working closely together for the adoption, at the UN international climate conference in Copenhagen in December, of an international climate agreement that will commit stakeholders to reducing greenhouse gas emissions in the world by 50% by 2050, in line with the conclusion of the IPCC (Intergovernmental Panel on Climate Change). They want an ambitious agreement which, they say, must include all major emitters, with developed countries having to reach comparable, economy-wide intermediate emission reduction targets by 2020, while developing countries should commit to mitigation measures. The joint declaration also calls for a Reducing Emissions from Deforestation and Degradation mechanism which has the potential to be an important element in a future global agreement on climate change. Both Europeans and Canadians say they want dialogue and close cooperation on the issues and challenges faced in the Arctic, highlighting research and the concerns of the Arctic peoples and communities.
Prospects of full air transport liberalisation between the EU and Canada
European and Canadian leaders also marked the conclusion, in November 2008, of a bilateral agreement on progressive liberalisation of air transport between the EU and Canada and their respective air markets (see EUROPE 9801). The formal signature will take place as soon as possible. The provisions of the agreement will ensure, initially, liberalisation of air passenger traffic (airlines will be able to operate flights with no restrictions imposed on prices or numbers) and additional rights for air freight carriers. From the beginning, these latter are likely to be able to enjoy the “7th freedom”, provided for in the second phase of the agreement, which will guarantee them the right to provide transport services to third countries without having to go through their country of origin. Ottawa recently liberalised investment rights allowing foreign investors to acquire up to 49% of the shares in Canadian companies. The two sides also signed an air security agreement, to boost activity in the aeronautics industry, reduce costs and simplify administrative requirements in air transport. (E.H./A.By./transl.rt)