Canada economic talks fall flat

Canada’s efforts to launch full-scale talks on an economic partnership agreement along the lines of the EU-US dialogue have fallen flat. Talks on the existing trade and investment enhancement agreement (TIEA), launched in 2004, are moving slowly.

Canada is keen to jump-start relations with a high-profile initiative that would signal both sides’ commitment to closer co-operation.

The Canadian Trade Minister David Emerson wrote in May to Peter Mandelson, the European trade commissioner, calling for a "joint feasibility study" that would pave the way for an economic partnership. His suggestion was that a chapter on regulatory co-operation contained in the TIEA should be signed as a stand-alone agreement. Talks on liberalisation of aviation markets would also be considered separately.

But Mandelson’s reaction was lukewarm. A Commission official said that "in the longer term, Mandelson might be open to some creative thinking". In the shorter term, however, Mandelson was keen to continue with TIEA talks.

Of all Canada’s provinces, Quebec has the strongest economic links to the EU. Jean Charest, Quebec’s prime minister, has been instrumental in pushing Canadian Prime Minister Stephen Harper to strengthen economic ties with the EU.

"We want to reinforce the relationship," said Christos Sirros, the head of Quebec’s mission to the EU. "In the past few years things have been neglected. The last [EU-Canada] summit was cancelled and the previous one was held by video-conference." Sirros expressed the hope that feasibility studies, the very least Canada is hoping for, might be launched at next week’s summit.

Canada’s efforts to launch full-scale talks on an economic partnership agreement along the lines of the EU-US dialogue have fallen flat. Talks on the existing trade and investment enhancement agreement (TIEA), launched in 2004, are moving slowly.