Wednesday, May 6, 2009

Cracks Appear in Advance of Canada-EU Trade Talks Launch

(Embassy – Michelle Collins)

European officials say Canada promised everything was on the table, but a senior official says that’s not the case

While negotiations for a Canada-European Union economic partnership will finally get the go-ahead today in Prague, officials from both sides appear to be strides apart about what exactly is on the table.

That gap has led to concerns the negotiations – already expected by many to be extremely difficult given the parties involved and the range of issues to be addressed – are falling off the rails even before they have started.

The talks for a Canada-EU economic partnership agreement, named as such because it is expected to scope far beyond a traditional free trade agreement, are expected to be the most challenging Canada has ever attempted.

The agreement is expected to tap into federal and provincial sectors and regulations across Canada, and aims to bring them in line with those of the 27-country EU. It will also include things like labour mobility, government procurement and intellectual property rules.

An EU official last week told Embassy that Canada had, after resisting for years, agreed to put all federal and provincial sectors up for possible negotiation – and that this is why the EU finally approved trade talks.

“Both sides have said everything is on the table for discussion, and we’ve been very clear about that,” said Anya Oram, head of the economic and commercial section at the delegation of the European Commission to Canada. “Nothing is taboo as far as bringing it into these negotiations is concerned...We’re prepared to discuss everything, we have no hidden issues.”

But during a technical briefing on Friday in advance of today’s Canada-EU summit in the Czech Republic, a spokesman for Prime Minister Stephen Harper said that was not the case – especially when it comes to politically sensitive agricultural sectors protected in Canada by supply management. Read more here.