Canada and Europe sign historic trade deal

Canada and the European Union have signed a tentative deal to open up markets and drop nearly all import taxes on everything from food to cars.

Under the Comprehensive Economic Trade Agreement (CETA) and NAFTA, Canada will have preferential access to more than half of the world’s economy.

The sweeping agreement covers everything from cars to food to intellectual property,
Key aspects of deal

Highlights from the agreement include:

Canadian automakers will be able to export 100,000 cars a year, 12 times their limit now.
Full access to EU markets for Canadian fresh and frozen fruit and vegetables, or processed foods.
Full access to EU markets for Canadian wheat, oats, barley, rye and canola oil.
Full access to EU markets for Canadian dairy farmers, with both sides excluding poultry and egg sectors.
No more tariffs for many seafood products, including cooked and peeled shrimp, live lobster, frozen lobster and frozen scallops.
No more tariffs on metals and mineral products, including iron and steel.
EU cheesemakers will have an extra 16,000 tonnes to export to Canada, an increase over 13,000 tonnes.
The government is considering compensation for Canadian dairy farmers if they lose money because of the agreement. It’s not clear whether compensation is being considered for small cheesemakers.
Canadian beef producers will be able to sell an additional 50,000 tonnes of beef – the current quota is 15,000 tonnes.
Canadian pork producers will be able to export 75,000 tonnes, a substantial increase to their current 6,000 tonne quota.
The government is also talking to the provinces and territories about compensation if the provision to extend drug patents by two years increases their costs.
It’s not clear what the cost will be to the government of losing all the revenue it earns off tariffs on European products – for example, a six-per cent tariff on luxury vehicles.
…The negotiations aren’t yet done: some areas of the agreement still need drafting, while others need fine-tuning, reporters learned through a briefing. But the most contentious points have been settled. The agreement text then has to be drafted, run past lawyers and translated into 22 languages for 28 EU countries to examine.

The document Harper and Barroso signed Friday is an agreement in principle and full ratification is likely two years away.