Warning on EU-Canada Trade Deal Misguided: Van Loan

(The Globe and Mail – Barrie McKenna)

A new study warning that free trade with Europe could cost Canada 28,000 jobs is a misguided ideological attack on open markets, Canadian Trade Minister Peter Van Mr. Van Loan Loan says.

The study by Canadian Auto Workers economist Jim Stanford for the Canadian Centre for Policy Alternatives concluded that a proposed Canada-Europe free trade deal would wipe out thousand of jobs in industries such as food processing, apparel making and the auto industry, while widening an already yawning trade deficit.

Mr. Van Loan said the CAW and CCPA are ideologically opposed to free trade, even though previous agreements clearly benefitted the Canadian auto industry and Canadian workers.

“The fact is they are ideologically opposed to an agreement that hasn’t even been completed yet,” Mr. Van Loan told reporters in Ottawa. “I have no difficulty dismissing that and focusing on the fact that this is a free trade deal that offers enormous upside potential for Canadian jobs.” Read more here.

Free-Trade Deal with EU Could Cost Thousands of Canadian Factory Jobs: CAW

(The Globe and Mail – Greg Keenan)

A free-trade agreement between Canada and the European Union would deal another blow to Canada’s already battered manufacturing sector, wiping out thousands of jobs in food processing, apparel making and the auto industry, according to an analysis of a potential agreement that will be released Wednesday.

Canada, which has run an annual trade deficit of $19-billion with the EU, on average, for the past 10 years, would lose 28,000 jobs – most of them in manufacturing – if tariffs were eliminated, says a study done by Canadian Auto Workers economist Jim Stanford for the Canadian Centre for Policy Alternatives (CCPA).

Instead of increasing imports of European goods and services, Canada should look to that continent to provide examples of “what is really required to build successful, innovative export industries, instead of continuing to naively hope that more free-trade agreements will solve all that ails our trade performance,” Mr. Stanford said. Read more here.

‘Sensitive’ Round of Canada-EU Trade Talks Kick Off

(Toronto Sun – Stefania Moretti, QMI Agency)

Canada and European Union trade officials met in Ottawa Monday to kick off the fifth and perhaps toughest round of negotiations to date on a free trade accord that could give a $12 billion annual boost to the economy.

Since the Comprehensive Economic and Trade Agreement (CETA) was first outlined in May 2009, progress has been relatively easy and has included some of the more obvious concessions such as reduced duties between Canada and the EU.

“As this round begins, we’re coming face to face with some of the tougher questions,” International Trade Minister Peter Van Loan said. “I thought that as we entered this crucial phase, it was important to be here personally, to underscore Canada’s commitment to these negotiations.” Read more here.

Canada Must Show Leadership on Trade

(The Globe and Mail – John Weekes)

Big challenges and opportunities face Canadian trade negotiators in the months ahead, as a visit to the website of the Department of Foreign Affairs and International Trade will show you. What’s missing is a signal from the political masters in Ottawa that they have the willpower to make trade decisions that will benefit most Canadians, but will certainly be unpopular in some parts of the country.

On Oct. 18, Canadian team members sit down in Ottawa with their European counterparts to continue crafting what is called a comprehensive economic and trade agreement. At the WTO in Geneva, Canada is trying to breathe life into the long delayed WTO Doha Round negotiations, and in Seoul on Nov. 11 and 12, Prime Minister Stephen Harper and other G20 leaders will continue the discussion they had in Toronto on the challenge of concluding this multilateral marathon.

Canadian negotiators also need to pick up on the recent Canada U.S. Agreement on Government Procurement by exploring “an agreement that would expand, on a reciprocal basis, commitments with respect to market access for government procurement”. Read more here.

Canada’s EU Trade Talks Could Fall Apart

(Financial Post – Danielle Goldfarb and Louis Thériault)

Negotiators need to take the offensive in opening Canada to EU trade

Canadian and European Union negotiators have made stunning progress toward a comprehensive Canada–EU trade agreement in the past year and a half. But the entire agreement could fall apart if narrow interests prevail, costing Canada access to a wider range of trade opportunities than most of us can imagine.

The EU wants to go big in this deal – and it is ready to go home without an agreement if only a narrow deal is on offer. But Canadian public discussion on the issue – when it exists at all – is dominated by a narrow approach. Some voices, for example, want to keep EU products, such as cheese, out of Canada; or they do not want to allow EU companies to provide services to Canadians. Media coverage tends to be narrowly focused on Canada’s exports of products to the EU. And many businesses seem unaware that we are even negotiating a deal, let alone a wide-ranging one.

In reality, the stakes in this negotiation are enormous. If there is no deal, Canadians will lose out on freer access to a deep and wide range of trade opportunities that dwarf the widely reported $35-billion in annual Canadian product exports to the EU. Read more here.

Canada-EU Trade Talks Need Wider Focus on Services: Report

(Canoe.com – Stefania Moretti)

Canada is at the bargaining table with European Union trade officials and the stakes are much higher than many would think, according to a new report by the Conference Board of Canada. That’s because Canada’s trade with the EU is grossly underestimated, the think-tank said.

Conventional trade analysis paints a narrow picture of the trade relationship, focusing mostly on hard goods trade and largely missing the service trade. Ignoring the value-added supply chain could leave Canada in a defensive position, essentially closing the door to substantial trade growth, it said.

“The entire agreement could fall apart if this narrow approach prevails, costing us better access to a broad range of long-term economic opportunities,” Danielle Goldfarb, associate director of the Conference Board’s international trade and investment centre, said in a release.

The report, entitled “Canada’s ‘Missing’ Trade with the European Union,” uses Research In Motion’s BlackBerry to illustrate the benefits of integrative trade. Designed in Waterloo, Ont., the BlackBerry is made of parts from companies all over the globe and assembled in either Hungary or Mexico. On top of manufacturing hardware for maximum returns, RIM also collects subscription fees from wireless carriers all over the world. The multilayer linkages make RIM an extremely sustainable profit model.

Yet traditional trade data would only consider a BlackBerry sale to an Asian consumer as an export from Hungary, entirely missing Canada, which accounts for a sizable portion of the collected revenue. Read more here.

CETA and Government Procurement: What's In It for Canadians? – July 23, Toronto

I.E.Canada in partnership with Foreign Affairs and International Trade Canada (FAITC) and Bennett Jones LLP invite you to attend a roundtable discussion to hear the latest developments in the CETA negotiations following the current round of talks in July 2010.

Government Procurement is one of the remaining principle requirements the European Union is seeking in the Canada-EU Free Trade Agreement. Worth hundreds of billions of dollars annually, government procurement markets are an important aspect of international trade.

What are the implications for Canadian companies of opening Canada’s government procurement markets to European suppliers and what are the prospects of expanding access to European procurement markets for Canadian exporters? Come and join I.E.Canada and other industry stakeholders in a roundtable discussion regarding government procurement negotiations.

When: Friday, July 23, 2010
Where: Bennett Jones LLP, Suite 3400, 1 First Canadian Place, Toronto, Ontario
Time: 12:00-12:20 p.m. – Registration and Lunch
12:20-2:00 p.m. – Program

This is a complimentary invitation for interested parties with limited seating. Please click here to register. If you are unable to attend in person but would like to participate via teleconference, please contact Amesika Baëta, Committee Director at abaeta@iecanada.com.

Why Parma Ham Stands In Way Of Trade Talks

(Michael Geist — Toronto Star)

Canada is currently negotiating two major international trade agreements whose success may ultimately depend on the level of protection provided to Parma ham. While it may seem hard to believe, the Canada – European Union Comprehensive Economic and Trade Agreement (CETA) and the Anti-Counterfeiting Trade Agreement (ACTA) are both facing increasing opposition based on European demands to expand protection for “geographical indications.”

Geographical indications (GI) are signs used on goods - frequently food, wine, or spirits - that have a specific geographical origin and are said to possess qualities, reputation or characteristics that are essentially attributable to that place of origin.

Given the quality associated with the product, proponents of GI protection argue that it is needed to avoid consumer confusion as well as to protect legitimate producers.

Europe has the most extensive geographical indication protections in the world. These include Protected Designation of Origin (PDO), which covers agricultural products produced, processed and prepared in a given geographical area using recognized know-how; Protected Geographical Indication (PGI), which covers agricultural products linked to the geographical area; and Traditional Speciality Guaranteed (TSG), which highlights traditional character, either in the composition or means of production.

The net effect of the European system is that hundreds of items enjoy special legal protection. In fact, the system is so extensive that the Canadian Association of Importers and Exporters have expressed concern that CETA could lead to new restrictions on the use of words such as “pizza” or “feta.” Read more here.

When EU Talks Trade, It Receives More Than It Gives - Canada Must Be Wary During CETA Negotiations

(Edmonton Journal, Peter Clark)

Canadian and EU negotiators were meeting again last week in Brussels for the fourth round of negotiations on the Canada-EU Comprehensive Economic and Trade Agreement (CETA). International Trade Minister Peter Van Loan is also wrapping up a European tour to promote Canada-EU relations to “highlight Canada's competitive advantages to European partners.”

Will the CETA negotiations be deeper and broader than NAFTA? CETA is Canada's biggest bilateral initiative since NAFTA. But how much exuberance is warranted?

The reality is that Canada wants CETA more than Europe needs it. Europe recognizes this and will use its leverage to extract a high price. Canada must ensure the selling of this deal is more than negotiator's “puffing” and that Canadians will get what they are paying for.

Concluding CETA is important -- particularly to multinationals already inside the EU regulatory system through investments or partnering. Read more here.

Peter Van Loan’s Continuing Trade Talks Include Trip to Estonia

(Estonian Life)

In an exclusive interview, prior to leaving for bi-lateral talks with several European Union countries, Canada’s International Trade Minister Peter Van loan, has given Estonian Life a brief update on how free trade negotiations with the EU are developing. Read more here.

EU, Canada Put Faith in Trade

(The Toronto Star – Roy MacLaren)

Amid the ups and downs in news about global economic recession and recovery – in Canada’s case notably up – comes the good news of progress by the European Union and Canada in negotiating a “Comprehensive Economic and Trade Agreement.”

The pending agreement goes well beyond the Canada-U.S. free trade agreement and NAFTA. At the beginning of last year, both sides launched the negotiations by putting everything on the table, tariffs and non-tariff barriers alike.

In addition to removing all remaining tariffs, the new agreement will take into account a wide diversity of influences on trade. These will include the free movement of skilled workers; the opening up of procurement at all levels of government; the harmonization or elimination of a range of regulations that are especially noxious forms of protectionism, particularly in agriculture; environmental enhancement – everything that can either facilitate or obstruct transatlantic trade and investment. Read more here.

Canada on the Hunt for Trade

(Tom Ford — Winnipeg Free Press)

When they were in the backyard garden of 10 Downing Street in London this month, British Prime Minister David Cameron told Prime Minister Stephen Harper something of significance, but which did not get much publicity. Cameron endorsed a proposed Canada-European Union trade agreement.

Canada wants Britain’s backing on our trade negotiations with the EU because we desperately need more places in which to sell our goods and services. As my sainted mother used to say: “You’ll have a big problem if you have too many eggs in one basket.”

At present, Canada has two major baskets: our domestic market and the United States, far and away our biggest export market. The Canadian market is frisky right now, but economists see it slowing late this year or early next. America is still having problems climbing out of the hole its grasping bankers pitched it in 2008.

Many Canadians don’t know about our trade initiative with the EU. But it’s “the most ambitious trade agreement we’ve ever had,” federal Trade Minister Peter Van Loan says. About 60 Canadian officials have been huddled in talks with their European counterparts in Ottawa’s former city hall, beside the Rideau River. Read more here.