EU-Canada Free-Trade Agreement Could Lay Groundwork for Larger Accord with the US

Leaders from France and Canada expressed the sentiment as they work to resume stalled negotiations between Canada and the European Union.
  • French Prime Minister Jean-marc Ayrault met with Canada's prime minister, Stephen Harper
  • Both were upbeat about potential for a free-trade accord between Canada and the European Union
  • Negotiations between Canada and the EU have been stalled over several deadlocked issues, mainly in agriculture
  • The EU is Canada's second-largest trading partner, after the United States

A Western Juggernaut

It would have access to 850 million consumers and be Western juggernaut facing rising economies such as China.

Bilateral Canada-EU trade reached a record Can$116.4 billion (US$113.8 billion) in 2011, up 10% from the previous year, with Canadian exports led by gold, aircraft, diamonds, uranium and iron ore.

Officials said free trade would boost bilateral exchanges by as much as 20%.

"The most sensitive issues have to do with balanced exchanges in the agricultural sector," Ayrault said.

EU Eyes Dairy Tariffs

The EU is seeking to lower tariffs of up to 300% shielding Canada's supply-managed dairy industry from imports of European cheeses.

Ottawa is pressing for increased access to EU markets for Canadian beef and pork, which Ireland opposes.

An EU-U.S. deal, meanwhile, would add 0.5% to the EU economy every year, according to European Commission President Jose Manuel Barroso.

After Ottawa, Ayrault travels to Toronto, Montreal and Quebec City, where he will meet with provincial premiers.

Copyright Agence France-Presse, 2013

Please or Register to post comments.

Subscribe to IW Newsletters

IW Marketplace - Buy a Link Now