Lorraine Mallinder

Study does not presage Canadian free trade accord, says Commission
By Lorraine Mallinder
European Voice, 31.07.2008

Canada may have to settle for partnership agreement.

The European Commission will release the results of a study on EU-Canada trade relations over the summer, paving the way for closer ties between the two economies – but not necessarily a full-blown free trade agreement.

A Commission source said that it was “not a feasibility study that would normally be applied to free trade negotiations”. “It should not be overplayed or oversold by anyone at this point,” he said.

Canada, which has long been pushing for a trade deal with the EU, may have to settle for an enhanced partnership agreement. Christos Sirros, the head of the Quebec delegation in Brussels, said that any deal would have to create opportunities for “trade-offs”, covering issues in a “global” rather than a “sequential” manner.

Canadian provinces Quebec and Ontario, which have strong ties with France and the UK, have been lobbying especially hard for a trade agreement. Sirros said that an eventual deal should cover market access, non-tariff barriers, regulatory co-operation, public procurement and labour mobility.

An EU diplomat said that France, which currently holds the presidency of the Council of Ministers, would be pushing for an ambitious declaration at the EU-Canada summit on 17 October.

She conceded, however, that a proposed EU ban on seal products could disrupt negotiations. The proposal, unveiled last week (23 July), would target countries like Canada, which are considered to be insufficiently regulated. Sirros said that hunting methods employed in Canada had changed considerably in the past three decades and could no longer be considered “cruel and inhumane”.

Climate change discussions, contentious in the past, are expected to be less troublesome this time round.

Canada aims for free-trade accord
03.04.2008 / 00:00 CET

Canada is pressing the EU to launch talks on a free trade agreement (FTA) ahead of the EU-Canada summit in October.

A study setting out the merits of tighter trade relations between the two blocs could be ready before the summer break, paving the way for talks at the summit, which will be held in Montreal.

Canadian officials are lobbying France, the UK and some other member states to gather support for an FTA. It is hoped that closer trade relations could eventually lead to closer strategic co-operation in areas such as energy.

But, the European Commission has given the idea a lukewarm reception. Talks on an existing trade and investment enhancement agreement (TIEA) have moved very slowly since 2004. Canadian Trade Minister David Emerson called for the feasibility study ahead of last year’s EU-Canada summit in Berlin. European Trade Commissioner Peter Mandelson acquiesced, but was said to favour continued TIEA talks.

Canadian Prime Minister Stephen Harper is counting on the backing of French President Nicolas Sarkozy, who assumes the EU’s rotating presidency in the second half of the year.A French official indicated that the forthcoming EU presidency will back the plans. “We want to reinforce the economic and political aspects of the partnership,” she said. “We are waiting to see results of the study before we decide on the terms of strengthened co-operation.”

Canada hopes to increase trade flows in up-and-coming sectors such as renewable energy technologies. Trade between the EU and Canada until now has mainly consisted of manufactured products, such as machinery and transport equipment, chemicals, minerals and agricultural produce.

The Commission‘s hesitancy reflects Canada’s small proportion of EU external trade, just 1.8% in 2006. Investment flows are, however, significant. The EU is the second largest investor in Canada (after the US), while Canada is the third largest investor in the EU (after the US and Switzerland).

A Commission official said that with World Trade Organization talks still hanging in the balance, the EU might be reluctant to start FTA talks with any member of the Organisation for Economic Co-operation and Development.