Canada looks to strengthen European ties

Date: 14/12/00

UNLIKE its behemoth neighbour to the south, Canada has undergone a rather seamless transition to a new government - but to nearly everyone's surprise, it is the same as the old one.

When EU leaders visit Ottawa next Tuesday (19 December), they will find themselves seated across the summit table from many of the same political figures they have met over the last few years, even though only last month it looked as if Prime Minister Jean Chretien's government would suffer heavy losses in nation-wide elections.

The newly resurgent Chretien is looking eastward and wants to strengthen his country's ties with Europe after several decades of increased reliance on trade and cooperation with the US. But he also shares the Americans' concerns about the Union's new rapid reaction force and how it will work with the NATO alliance.

"The most difficult issue at the summit will be defence," said one Commission official, pointing out that there was significant scepticism in Canada over Europe's plans. "People read the English tabloids in Canada and they hear Mrs Thatcher saying this is a new superstate and they say, 'This is it'."

EU leaders spelled out their intentions for the military initiative at last weekend's Nice summit, and diplomats say they will produce a joint statement stressing once again their desire to work with, and not against, NATO in Ottawa.

The thorniest trade issue to be discussed at the summit is likely to be a proposed agreement on wine exports, but differences must still be settled over

Union concerns about the labelling of Canadian products and Canada's desire to export sweetened wine to Europe.

But diplomats say a long-running dispute over the

EU's 6% levy on Canadian aluminium imports will not be addressed. "It is not easy to give a one-sided concession to Canada on this," said the Commission official.