The Canadian government signed its first bilateral trade liberalization deal in six years last week, opening the prospect of more agricultural trade with four European countries.
Canada’s newest trading partners are not members of the European Union, but trade minister David Emerson said they can be a window into the lucrative EU market since a free trade agreement governs their commerce.
Iceland, Norway, Switzerland and Liechtenstein, members of the European Free Trade Association, import $76.7 million worth of Canadian agriculture and food products. Free trade talks have been underway for nine years.
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Agriculture Canada officials said exporters “will make considerable gains from a free trade agreement with EFTA.”
Durum wheat can now enter duty free to a tariff rate quota limit.
Crude canola oil will be able to enter Switzerland duty free.
Tariffs on frozen french fries are being slashed in Iceland and Norway.
Meanwhile, both sides are promising to end all export subsidies on goods traded between them, which will help Canadian cheese and lamb producers, who have had to compete with subsidized product from those countries.
However, Emerson said the real benefit of the deal is that it gives Canada a gateway into Europe.
Emerson said that Canada has been too fixated on WTO talks while competitors have been finding ways around it.
Last week, he announced Canada also has started negotiations with Peru, Colombia and the Dominican Republic.
Negotiations continue with South Korea on how reopening the border to Canadian beef can be part of a proposed Canada-South Korea free trade agreement.
The $76.7 million in Canadian agriculture and food exports to the EFTA countries represents just two percent of total exports. Canada imports $131 million in food products from the four countries.
As usual, Canada excluded supply managed products from any tariff cuts in the deal.
