MONTREAL--Countries negotiating a trans-Pacific trade group are "highly unlikely" to complete an agreement this year, Canadian Trade Minister Ed Fast said Wednesday.

"I think generally there's an understanding that it's highly unlikely that the agreement will be completed before the end of this year," Mr. Fast said in an interview on the sidelines of an economic conference here. "I think there's a general consensus that that won't happen."

The Trans-Pacific Partnership, originally signed in 2005, comprises the U.S., Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore and Vietnam. The members have concluded 12 rounds of negotiations and the 13th is scheduled to be held in San Diego next month.

Canada is keen to join the TPP as it seeks to expand trade with fast-growing emerging markets.

All nine member countries have to agree to the inclusion of any new member. Mr. Fast, who has been lobbying for support from each of them, said "momentum is building" in favor of Canada's entry. Canada has the backing of six and needs to get Australia, New Zealand and the U.S. on board. These three countries are "continuing to work with us to determine what truly our level of ambition is," Mr. Fast said.

Canada's practice of supply management that protects dairy and poultry farmers is a contentious issue. Mr. Fast said Canada has informed each TPP member that it's prepared to discuss all issues, including agriculture, at the negotiating table, but has also made it clear that it will honor commitments made to Canadian farmers.

He said he's "very pleased" with the progress made in promoting Canada as a "highly ambitious partner" in the group.

The Canadian government is aggressively pursuing trade which it described as the "new stimulus" that will boost global economic recovery. Mr. Fast and Prime Minister Stephen Harper regularly speak out against protectionism.

Canada is negotiating several free-trade agreements, including with the European Union and India. Mr. Fast said he hopes to complete negotiations with the EU by the end of the year. "Progress we're making so far seems to indicate that we're still on track," he said.

Mr. Fast also said the EU will conduct a comprehensive review of the impact of the current draft of its Fuel Quality Directive on the oil market, and is also likely to review the methodology. A decision likely won't be made until 2013, he said.

The European Commission, the EU's executive body, is considering singling out crude oil from Canada's oil sands as being dirtier than other fuel types, in a revision to the FQD, a law designed to lower carbon emissions from transportation fuels. Canada contends that the methodology and science behind it aren't sound.

"We will continue to engage with our counterparts in Europe and vigorously defend Canadian interests, including the interests of our oil industry," Mr. Fast said.

June 13, 2012

Source: Wall Street Journal

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