Canada nears free-trade deal with EU: Official

OTTAWA: Canada is making substantial progress toward a free-trade deal with the European Union that would increase trade ties, a Canadian government official said Friday.

"We are making important progress as we move closer toward an agreement that has the potential to dramatically boost two-way trade and create jobs and prosperity in all regions of Canada," said the international trade minister, Ed Fast, following a week of negotiations in Brussels.

Fast said in a statement that "significant progress" has been achieved in all areas of negotiation, including goods, services, investment and government procurement.

His comments came after an eighth round of talks between the transatlantic trade partners, whose bilateral exports and imports total about 100 billion Canadian dollars (US$104.7 billion) annually.

Fast reaffirmed their plans to exchange offers on services and investment ahead of a ninth round of talks scheduled in Ottawa in October, "with the aim of completing negotiations by 2012."

The 27-nation EU is Canada's second-largest trade partner, after the United States, and also is the number-two foreign investor in the resource-rich North American country.

In 2010 Canada exported about 49 billion Canadian dollars worth of goods to the EU, and imported $55 billion worth, according to official data.

A deal with the EU would be Canada's second-largest free-trade pact, after the North American Free Trade Agreement with the US and Mexico.

According to a 2008 Canada-EU joint economic study, a free-trade agreement could boost Canadian gross domestic product by at least $12 billion.

Copyright AFP (Agence France-Presse), 2011

Copyright APP (Associated Press of Pakistan), 2011