Progress Made In Canada-EU FTA Talks

Representatives for Canada and the European Union (EU) have concluded a 'productive' ninth round of talks toward a free trade agreement, with progress made in the core market access areas of goods, services, investment and government procurement.

Wrapping up the negotiations, Ed Fast, Canada's Minister of International Trade and Minister for the Asia-Pacific Gateway, called the latest stage "another milestone" as the deal nears completion. Fast said that officials had exchanged offers on services and investment. Talks began in 2009, and, according to Fast's department, significant progress has been achieved across the board.

As a single market, the EU is Canada’s second most important partner for trade and investment, after the US. Bilateral trade was worth CAD82.5bn (USD82bn) in 2010, up from CAD75bn the previous year. In addition, Canadian direct investment in the EU totalled more than CAD145bn. According to a joint study published by the EU and Canada in 2009, a stronger economic partnership could boost Canadian GDP by CAD12bn annually, with two-way trade projected to increase by CAD38bn.

Fast said of the impending deal: “Once final, this agreement will protect and strengthen the long-term financial security of hard-working Canadians. With one in five Canadian jobs dependent on trade, a trade agreement with the European Union has the potential to benefit Canada enormously: a 20% boost in bilateral trade, a CAD12bn annual increase to Canada’s economy, almost 80,000 new jobs, and an extra CAD1,000 for the average Canadian family.”

“While some issues still need to be resolved, negotiations are now well-advanced and solutions to them are being actively explored. As we enter the next phase of negotiations, our government will continue to vigorously defend Canadian interests to ensure any agreement we conclude benefits Canadian businesses, workers and their families. In these challenging economic times, a trade agreement with the European Union will bring jobs and prosperity to Canadians. Our government received a strong mandate to implement an ambitious job-creating, low-tax, pro-trade plan that will secure Canada’s economic recovery. We are following through on a plan that meets these economic challenges, a plan that is working”, Fast concluded.

October 24, 2011

Source: Tax News