Canada’s free trade negotiations with the European Union are on a fast track to either succeed spectacularly or fail completely within the next 18 months, says Canada’s chief negotiator.
The stakes for Canadian farmers are high, Steve Verheul told yesterday’s meeting of the Canada Grains Council and Grain Growers of Canada.
“They are the largest, wealthiest market in the world,” he said. “We will get a big ambitious deal or there will be no deal.”
Verheul said the potential for Canadian agricultural producers is vast if Canada can negotiate a deal that does not just deal with tariffs but actual market access.
He said both sides have agreed the deal will be completed with two years ending in 2011 or talks will end.
“Agriculture is one of our key priorities in the negotiation,” Verheul said as he urged farm sectors with an interest in expanded access to European markets to speak out in favour of a deal.
John Masswohl of the Canadian Cattlemen’s Association quickly embraced the potential for more beef access to the European market.
“It is hard to express how important these negotiations are,” he told Verheul at the meeting.
“This market rivals the United States market in terms of potential for beef.”
Verheul said the discussions will be difficult.
Key issues to be negotiated are EU restrictions on hormone-treated beef that largely closes the market and restrictions on genetically modified crops.
Likewise, the Europeans have signaled that access to Canada’s dairy and cheese markets will be a key goal. Canada has already signaled that supply-managed sectors such as dairy will not be compromised through trade talks.
However, Verheul said all items are open for negotiation, including Canada’s import-sensitive sectors. Ultimately, it will be up to politicians to decide what policy compromises are needed to win a deal.
He told reporters after his speech that while the goal is the most ambitious trade-opening deal possible, both sides may pull in their free-trading horns when agriculture discussions are held.
The Europeans have their own sensitive product import protections and export supports.
“While we are aiming for the highest level of ambition, I think when it gets to agriculture we will see the level of ambition is scaled down given views and sensitivities on both sides,” he said.
