Canada-EU trade talks going well, minister says

Canada and the European Union completed another round of negotiations this week on the free trade deal the government is aiming to seal by next year.

Canada and the European Union have completed another round of negotiations on the free trade deal that the government is aiming to seal by next year with International Trade Minister Ed Fast saying officials made "ambitious offers" on goods and government procurements.

International Trade Minister Ed Fast said Friday that officialsin Brussels for the eighth round of talks made "ambitious offers" on goods and government procurement and that talks are continuing to move forward. The goal is to complete the major trade deal by 2012.

"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," he said.

The talks in Brussels didn't all go smoothly, however. Negotiators have been hoping to strike a deal this year, but sources briefed on the issue said the two sides had disagreed week on how to open public contracts and servicesto each other's operators, Reuters reported.

The EU's trade spokesman agreed with Fast's characterization, however, that progress is being made.

"While a number of issues remain complex and will need further work over the coming months, significant progress was made across the board, including on goods, services and public procurement,"John Clancy said in a statement reported by Reuters.

The trade deal, whichCanada and the EU first started developing in 2008,has its share of critics. Some have raised concerns about its potential social, environmental and economic impact in Canada and that it could lead to job losses or the privatization of public services.

Jobs, benefits touted

The government, however,saystheagreementwill generate jobs and bring huge benefits to Canadian workers and the economy. It estimates that it could boost Canada's GDP by at least $12 billion and that itwill work in favour of workers in many sectors including forestry, aerospace, chemicals, plastics and other commodities.

"These negotiations represent our most significant trade initiative since the North American Free Trade Agreement, and while some issues still need to be resolved, our government is vigorously defending Canadas interests to ensure that any agreement we sign benefits Canadian workers, businesses and their families," Fast said.

The government says expanding Canada's access to more international markets, including the 27 nations in the European Union, is part of its "job-creating, pro-trade plan."

The Conservatives have signed eight other freetrade deals since coming to power in 2006 and have several others in the works, including one with India, one of the world's fastest growing economies.

The next round of negotiations for the EU-Canada dealwill be held in Ottawa in October and offers on services and investment will be made before then, Fast said.