EU committed to free trade deal with Canada

TORONTO (AP) — European Union trade commissioner Karel De Gucht said Wednesday the EU is committed to finalizing a comprehensive free trade agreement with Canada in 2011.

During a trade meeting in Canada, De Gucht said negotiators have completed five rounds of talks and are in the final stages of reaching an agreement that could generate additional annual income of up to €20 billion (US$26 billion) for the EU and Canada combined.

Canada's international trade department said in 2009 two-way trade between the EU and Canada reached US$74 billion. Canadian merchandise exports to the EU totaled US$29 billion in 2009, the department reported.

"It is vital for both sides to double up the efforts to reach our common goal, that is to say a good deal that serves the interests of both Canada and of Europe, and this deal is set to be unique, a milestone if you will, among EU trade deals," said De Gucht.

Along with removing tariffs and non-tariff barriers, De Gucht said, for the first time in a trade talks the EU has put areas falling under the jurisdiction of Canada's provinces and territories on the table as part of the discussions, instead of solely focusing on federal arenas.

Canada's International Trade Minister Peter Van Loan said if a deal is reached, Canada will be the first developed economy in the world to have free trade agreements with both the European Union and the United States.

"The negotiation of this trade agreement is Canada's most important trade initiative since the free-trade agreement between Canada and the United States," said Van Loan.

Both government officials said they are still working out the thorny issues such as access to provincial government procurement, including new green technologies and agricultural subsidies.

Procurement is becoming an especially controversial area, with unions and civil society groups mounting a campaign to block concessions.

Citizen organizations such as the Council of Canadians and the Canadian Union of Public Employees said they will release a report Thursday warning that Canada's public water system is in jeopardy in the trade talks. An agreement would increase pressure to privatize the current government-owned water systems, they say.

Van Loan said everything is on the table in the talks, but some issues may require creative solutions.

Canadian Prime Minister Stephen Harper has put new trade agreements in the forefront in a bid to grow the Canadian economy through increased exports.

Canada has signed a string of agreements, including with Colombia, and is pursing trade pacts with India and South Korea.

The next round of Canada-EU talks is set for January in Brussels.