Canada, EU Aim to Bring Trade Talks into Final Stages

Negotiations for a Canada-EU trade deal are at a key stage, officials say, with top trade officials from both sides expected to meet in the coming days in an effort to resolve the remaining political hurdles. With just weeks left until the end of the year, however, whether or not the two sides will be able to meet their goal of finishing the talks by end-December remains still unclear.

Over three years after their launch, officials say that the talks for the Canada- EU Comprehensive Economic and Trade Agreement (CETA) have made significant progress. However, “there is a small basket of issues left and as in any negotiations, they are the toughest ones to resolve,” Canadian Trade Minister Ed Fast told Reuters earlier this month. Fast added that he is “certainly committed to negotiating around or through those.”

The predicted date for a conclusion to the negotiations has changed repeatedly over the talks’ three-year run. Canadian and EU officials had said earlier this year that the discussions should be completed by the end of summer 2012. A prior deadline to finish the talks by 2011 also went unmet.

Agriculture, public procurement, intellectual property issues remain difficult

Market access for agricultural goods is one of the areas still under discussion, officials say, while long-standing differences on public procurement also remain unresolved. With regards to the latter, the EU is pressing for Ottawa to open further its provincial and municipal procurement market.

Another significant obstacle standing in the way of a deal is an ongoing disagreement in the area of intellectual property rights. Requests from Brussels that Ottawa provide for stronger patent protection of brand-name pharmaceuticals have sparked concern among generic drug producers and health care advocates that are worried over the possible rise in the cost of medicines. Recent Canadian press reports say that Ottawa might be prepared to make some of the EU’s desired concessions in this area; however, the issue is expected to remain a hot topic in the coming discussions.

Push for bilateral deals

EU officials have been making a concerted push over the past year to quickly conclude ongoing trade negotiations with a range of countries, including Canada, India, and Singapore, while also advocating for the launch of new trade talks with countries such as the US and Japan. Such bilateral deals, officials say, could be key to generating growth and jobs in the struggling eurozone, particularly given the continued impasse in the WTO’s Doha Round of trade talks.

Canada-EU bilateral trade in goods totalled €77 billion in 2011, according to European Commission data. A joint study published in 2008 predicted that annual real income could increase by €8.2 billion for Canada and €11.6 billion for EU within seven years of the proposed deal entering into force.

De Gucht: End-2012 finish date still possible

In spite of the remaining barriers, some trade officials say that they remain optimistic that the deal could be finished by the end of the year.