Spotlight on trade negotiations with Canada

The European Union is currently negotiating a Comprehensive Economic and Trade Agreement with Canada. If approved, it will be the EU's first free trade agreement with a G8 country. At the beginning of November, a delegation from the Committee on International trade visited Canada and met representatives from federal and provincial governments as well as various stakeholders. Slovak Christian democrat Peter Šťastný, who will prepare a report on the accord told us more.

What are the remaining obstacles to the agreement with Canada?

After nine productive rounds, negotiations are entering a phase with smaller expert groups to resolve remaining issues. These are mostly in areas including rules of origin, agriculture and fisheries, procurement, IPR (Intellectual property rights) protection, GIs (geographic indications) etc.

The agreement was expected to be signed by the end of 2011, what is holding it back?

Mostly because it is a very ambitious and broad agreement. I would also think that the unexpected early election in May this year in Canada played a role in the delay.

This agreement might be the EU's first with a G8 country. How significant is this?

It clearly shows a trend. Especially in difficult economic times, a free  trade agreement (FTA) helps in the creation of economic growth and jobs. The US and EU recently concluded FTAs (with a number of third countries) and initiated negotiations of new ones.

How can the EU ensure that it opens its market only to Canadian goods, given that the US and Canadian economies are very closely integrated?

The EU will ensure that only a negotiated amount of non-Canadian content will enter the EU market. That is a reason  rules of origin are among the most sensitive and complicated issues. Particularly in case of the automotive industry, which is extremely integrated with the US. But a negotiated agreement will be fully enforced.