Four Trade Deals On The Horizon

Mr. Emerson said the agreement, which comes after nine years of negotiation, will open opportunities for Canadian businesses in the building materials, forestry, auto parts and agricultural sectors. It will also provide a springboard for Canadian companies to enter the 27-country European Union market, and an advantage over American companies as the United States does not have a free trade agreement in Europe. Trade between Canada and the four countries amounts to about $11 billion per year, with two-way investment topping $22 billion. Negotiations began in 1998 but came to a standstill in 2000 over Canadian concerns that Norway's shipbuilding industry would devastate Canada's own fledgling sector. Mr. Emerson said the agreement includes a three-year grace period, after which the 25 per cent tariff on foreign-built ships will be phased out over 15 years. Peter Cairns, president of the Shipbuilding Association of Canada, said the government had done a "fairly reasonable job" of protecting the industry, but companies are now waiting to see what kind of support they will receive to ensure the industry will survive once the phase-out period ends. The same day Mr. Emerson announced the EFTA agreement was completed, the government said it would renew and add $50 million over the next three years to the Structured Financing Facility. The SFF helps buyers of Canadian-built ships by reducing the interest on loans they use to purchase them. But even with the SFF, and the government looking to spend around $3 billion on new coast guard and military ships, Mr. Cairns said more will be needed. http://www.embassymag.ca/html/index.php?display=story&full_path=/2007/june/13/tradedeals/

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