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Canada Enter Euro Free Trade Agreement with Four Nations
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Canada has penned a free trade deal with Iceland, Liechtenstein, Norway and Switzerland currently conduct about $11 billion in two-way trade with Canada. The agreement came after nine years of talks, International Trade Minister David Emerson announced. (Nine years later and some 11 billion dollars worth of wages to be paid :P)
The agreement with the European Free Trade Association is the first deal of its kind in six years and the first ever with European nations. In terms of size, the four countries amount to the same level of bilateral trade Canada conducts with South Korea. It's also far less than the $626 billion in trade conducted last year with the United States, representing 82 per cent of Canada's total international trade.
The agreement must still be approved by Parliament, and it could meet opposition from Canada's shipbuilding industry.
Emerson explained the deal provides a phase-out of Canada's tariff over a 15-year period, with a grace period of three years before any cuts begin. The phase-out is designed to provide the industry a period of time to adjust to the new market conditions.
Canada last signed a free trade deal with Costa Rica in 2001. Since that time, the U.S. has made 16 free trade deals, Chile has made 11, Mexico four and Australia three.
Emerson said Ottawa is launching free trade talks with Colombia, Peru, the Dominican Republic, and the Caribbean community.
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Jun 7, 2007, 8:01 PM
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