Current Trends And Developments In Canadian Trade Policy - Part II

Part II: Current Negotiations and Prospects

The current and upcoming negotiations being conducted by the Government of Canada are the component parts of the larger strategy to ensure Canadian business can reap the benefits from partnerships with some of the fastest growing economies on the globe.

Comprehensive Economic and Trade agreement with the European Union (CETA):

Launched in 2009, this negotiation should be completed by the end of 2012.

While this negotiation is with a traditional partner, and a developed market (our second largest), there are gains available that not only bring direct bilateral benefit, but situate us well for the next round of negotiations with Asian countries.

It is hugely important for Canada's credibility that we bring this negotiation with a major player to a successful conclusion, something we have not been able to do since the NAFTA. We need to walk into the Asian negotiations with this one "under our belt", proof that we are back in the "big leagues" of trade negotiations.

This is also a "state of the art" agreement, more extensive and ambitious than the NAFTA. It could result in the immediate elimination of tariffs on almost all trade.

Bilaterally,

there are important gains possible for Canada in several areas, including better market access for meat and fisheries products, services and intermediate manufactured and processed goods. we want to secure an effective investor state dispute settlement system, given the extent of Canadian investment in Europe, and vice versa the EU's key demand is access to government procurement opportunities at provincial and municipal levels, highlighting the importance of provincial agreement to make this deal a success, which seems to be likely. The EU is also seeking three improvements in Canada's IP regime for the benefit of European name brand pharmaceutical companies (although US and other companies will also benefit as "free riders")

of these, I believe toughest for Canada to accept would be patent term restoration for up to 5 years for time spent in testing new drugs in order to get regulatory approval hard to predict outcome – depends on what EU gives in return e.g. on agricultural products no doubt that enhanced protection generally on IP is in Canada's longer term economic interests The "final" round of full negotiations was held in Brussels in October 2012. Chief Negotiators and political levels --- and ultimately the leaders of both sides --- can be expected to resolve outstanding matters and set the final package before the end of the year. However, the legal "scrub" will probably hold off ratification for up to a year.

Trans-Pacific Partnership (TPP)

With the conclusion of the CETA, the Trans-Pacific Partnership negotiations will become the Canadian government's major trade policy...