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NEWS: Canada-EU free trade deal may not be signed next week

The Globe and Mail reports, “The Prime Minister’s spokesman is playing down expectations that a free trade deal with the European Union will be inked during (Stephen Harper’s trip to Europe next week), even though Canada intensified negotiations in recent weeks in the hope of ending the negotiations. Mr. Harper will visit London, Paris and Dublin before G8 meetings in Lough Erne, Northern Ireland, in the June 11-18 trip that includes a speech to the British Parliament and a visit with the Queen.”

“Andrew MacDougall, the Prime Minister’s director of communications, said he does not expect a deal will be reached during the trip. ‘We’re actually trying to sign the most comprehensive trade agreement that Canada’s ever signed. It involves multiple levels of government and we’re not there yet. We’re down to a few outstanding issues’, he told reporters in Ottawa Friday. ‘I won’t speculate or comment on what they are, but negotiations are ongoing and I don’t expect that we’ll be in a position to sign a deal next week. But that said, we’re at the negotiating table pressing hard and we’ll continue to negotiate hard in Canada’s interests.'”

Outstanding issues
Postmedia News reports, “The remaining issues that still must be resolved, according to multiple sources, include:
– The amount of duty-free beef and pork access Canadian producers will get in Europe. Canada wants more than 40,000 tonnes of non-hormone treated Canadian beef going to Europe each year, although the French and Irish have been leading the fight against Canada’s beef demands;
– Financial services and investment protection, including when investors can sue governments. The federal government is looking for what’s called a ‘prudential carve-out’ that would allow Canada to impose rules on European banks operating in Canada to ensure the integrity and stability of the Canadian financial system; and
– Public sector procurement on infrastructure, especially transportation projects in Canada. Quebec is looking for a carve-out to protect jobs at Bombardier plants, while municipalities are worried about losing autonomy and ability to give preferences to local companies on infrastructure projects.”

“The deal remains elusive, with both sides digging in their heels on a handful of issues — including beef access, financial services and government procurement — meaning it could be a tall order for the prime minister to sign a deal before he leaves Europe.”

CBC adds, “The European beef market and changes to intellectual property regulations around pharmaceuticals are reported to be some of the outstanding issues.”

Timeline
“The negotiations have been dragging on for years. CETA was supposed to be done in 2011, then 2012, and now mid-way through 2013 it is yet to be signed and new talks between Europe and the U.S. could be getting underway (in July). …Sources have told CBC News that the federal government is considering making the unusual move of announcing an ‘agreement in principle’ as a backup plan if the deal isn’t signed by mid-June. …Harper’s stops in France and Ireland take him right to the heart of the gridlock on the trade deal. The two countries are major beef producers and have been fiercely fighting Canada’s efforts to get as much Canadian beef as possible into European markets, worried it could cripple their own EU producers.”

And Postmedia says, “Canadian negotiators have been in Brussels for weeks and have effectively been told to remain there until an agreement is reached. Sources say there have recently been discussions on Harper potentially stopping in Brussels during his European trip to sign a Canada-EU free-trade deal if negotiations could be completed, or possibly announce ‘an agreement in principle’ if the two sides are close but not completely finished.”

It is important to note that even if CETA were to be signed next week, a two-year ratification process is still expected with numerous opportunities for us to derail the final deal given Canadian cities have called to be exempted from the deal, the need for provincial buy-in and the negative impacts the deal would have on the provinces, and opposition within the European Parliament.

Stay tuned!

For more, please read:
Council supports protest against Harper during his June 13 stop in London
Harper tries to strong-arm Newfoundland into concessions for CETA
More than 40 cities and school boards have demanded an exemption from CETA
Will Harper announce CETA behind a G8 security fence?