By Martin Banks - 23rd July 2009
The EU and Canada are trading partners with close historical ties
Catherine Ashton
The EU has taken the first steps towards creating an economic and trade agreement with Canada.
It follows a meeting in Montreal between EU trade commissioner Catherine Ashton and Stockwell Day, Canada's minister of international trade.
The pair heard from their chief negotiators on progress achieved to date, and they also discussed the WTO Doha negotiations.
After the meeting, Ashton said, “The EU and Canada are trading partners with close historical ties, and our ambitions for this agreement must reflect the depth of our relationship.
“We come to the table prepared to discuss all subjects of interest to either of us.
"There will be difficult issues, but we are convinced that the ultimate prize justifies the effort as we seek to trade our way out of the economic downturn.”
The EU is Canada's second-largest trading partner and Day said both his country and the EU stood to gain in many ways from closer relations.
He said, “This first meeting represents a solid step toward a historic economic agreement with the world’s largest market.
“A deeper economic partnership with Canada’s second-largest trade and investment partner will create jobs and opportunity for Canadian businesses.”
A recent study suggests that freer trade between Canada and the EU has the potential to bring a €8.4bn boost to the Canadian economy and increase Canadian exports to the EU by about 20 per cent.
In 2008, two-way trade in goods and services between Canada and the EU totalled €80bn, up 6.2 per cent from 2007.
The EU is Canada’s second-largest export market, after the United States. Canadian goods and service exports to the EU were up 3.9 per cent in 2008, reaching €36bn.
A bilateral agreement with the EU could deliver commercial benefits across many sectors of the Canadian economy, said Day.
These include aerospace, chemicals, wood products, automotive vehicles and parts, agricultural products, transportation and other business services.
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