Canada poised to sign free trade deal with EU

After four decades of trying to start a formal economic relationship with Europe, Canada is poised to sign a free-trade agreement with the European Union next year, Conservative Prime Minister Stephen Harper has told Newsfirst Multimedia.

Effect on agreement
During an exclusive interview session with Harper in Montreal on Nov. 18, to which members of the multicultural media were invited, the prime minister was asked by Newsfirst Multimedia whether Canada-EU free trade negotiations have advanced, and what effect the financial turmoil which is spreading in Europe could have on an eventual agreement.
“Canada’s been trying to get a trade agreement with Europe for 40 years,” he said. “I remember when I was a boy, Trudeau was talking about getting a trade agreement with Europe, so this is a great breakthrough. Unfortunately we’re in negotiations at a time when there’s probably less to be gained from Europe than there was at any other time previously. But that said, Europe is still a huge market and will still be a huge player in the future. So we’re going to press ahead, and I think that all the signs are that we’re going to be able to conclude next year.”

Less U.S. dependence
Some economists believe that Canada’s signing a free trade agreement with the EU would make this country less dependent on the economy of the United States. While historically the U.S. has been Canada’s most important trade partner, our southerly neighbour’s economy is slumping seriously. Although Canada has no wide-ranging economic agreement with the EU, in 1976 Canada signed the Framework Agreement on Economic Co-operation with the European Economic Community, the organization which preceded the EU.
Since 2009, the Harper Conservative government has been negotiating with the EU, with the goal of signing the Comprehensive Economic and Trade Agreement (CETA). Canada currently has a free trade agreement with the European Free Trade Association, which represents Iceland, Norway, Switzerland and Lichtenstein. According to Harper, there have been nearly a dozen rounds of negotiations with the EU. He noted that a Canada/EU free trade agreement was promised by the Conservatives during the last election campaign.

Tories signed many agreements
“We’re still on track to achieve that,” said Harper. “The negotiations are now entering the critical phase. We’re down to the short hairs where the some of the difficult trade-offs have to be made. And this is important for Canada. Our government has expanded the number of countries we have trade agreements with from five to 14.
“I mean it’s unbelievable that when we took office, as one of the most trade-dependent economies in the world we had only five trade agreements, and the two biggest ones were signed by the previous Conservative government. So we had a lot of work to do, we’re now up to 14, but frankly we’re got a lot more work to do, that’s the bottom line.”
As for the timing of a Canada/EU agreement, he added, “All the problems in Europe, does that put the trade agreement in jeopardy? I think it’s actually the opposite. I think because the Europeans have so many problems, they need to show some positive momentum on some other fronts. And the European Union, one of its great achievements over time has been trade. First of all trade within Europe and then expanded trade outside of Europe. I’m optimistic we’re still going to conclude an agreement.”
While the signing of a trade agreement with the Europeans appears more likely than not, Harper acknowledged in some of his remarks that the Conservative government is “concerned that the uncertainty in Europe and elsewhere is going to cause increasing stress on the Canadian economy.” However, at the same time, he said they are focusing on immigration as a means of encouraging growth in Canada’s economy.

Focus on immigration
“We have not in any way restricted immigration during the recession,” said Harper, maintaining that the policy is without precedent. “In fact, if anything we’ve increased it and we’ve certainly increased the use of key economic categories like temporary foreign workers. Our government believes strongly that immigration is an essential and positive component of the Canadian economy.
“We’re going to look at additional reforms where we can make it work even better. But the fact of the matter is that this is the first government in history not to restrict immigration during a recession, because we believe that vigorous immigration is essential not just to the immediate but to the long-term well-being of the Canadian economy.”