Following is the full text of a PMO News Release together with Backgrounders dated May 6, 2009:

Canada and European Union Launch Historic Economic Partnership

Comprehensive economic partnership agreement will increase trade opportunities

6 May 2009

PRAGUE, CZECH REPUBLIC

Prime Minister Stephen Harper, along with European Union President Mirek Topolánek and European Commission President José Manuel Barroso, today announced the historic launch of negotiations toward an economic partnership agreement between Canada and the European Union.

“At a time when many countries are retreating into protectionism, Canada is showing the way,” said Prime Minister Harper. “We are working to open new markets and positioning our country for the future.”

This partnership has the potential to bring a $12 billion boost to the Canadian economy and lead to significant gains for both Canada and the EU.

In addition to signing an air safety agreement, we also concluded negotiations on a comprehensive air transport agreement with the EU.  This will lower prices and give more choices for people traveling between Canada and Europe.

“The EU is second only to the United States when it comes to the size of our trading relationship,” said Minister Stockwell Day. “We are a trading nation. This is very good news for Canada.”

Backgrounder:

Canada and the European Union: Towards a Comprehensive Economic Partnership Agreement

6 May 2009

At the Canada-EU Summit on May 6, 2009 in Prague, Czech Republic, leaders announced the launch of negotiations for a comprehensive economic partnership agreement.  The first round of negotiations will take place as soon as possible.

Together with provinces and territories, and in consultation with Canadian stakeholders, the Government of Canada has prepared a detailed negotiating mandate.  Canada and the EU agree that we should be seeking an ambitious agreement, and will negotiate a wide range of areas, including trade in goods, technical trade barriers, trade facilitation, customs procedures and rules of origin, trade in services, investment, central and sub-central government procurement, food safety and animal and plant health measures, regulatory co-operation, intellectual property, competition policy, dispute settlement and sustainable development.

The EU is the world’s largest exporter of goods and services, while one in five Canadian jobs is estimated to be linked to trade. Their openness to the global economy is a key factor underlying this prosperity and is a powerful stimulus to competition, innovation and growth.

Economic relations between the EU and Canada are long-standing. In 2008, two-way merchandise trade totalled $90.4 billion, up seven per cent from 2007.  The EU is Canada’s second largest export market, after the United States. Canadian merchandise exports to the EU were up 3.5 per cent in 2008, reaching $36.4 billion. The investment relationship is even stronger: the EU is Canada’s second most important investment partner and Canada the EU’s fourth most important investment partner.

In October 2008, the EU and Canada released their joint study "Assessing the Costs and Benefits of a Closer EU-Canada Economic Partnership". The study indicated that the liberalisation of trade in goods and services has the potential to give a $12 billion boost to the Canadian economy and increase bilateral trade by over 20 percent.

While the federal government negotiates and enters into international treaties, the provinces and territories are responsible for implementing the treaty obligations that fall within their jurisdiction, including through enacting legislation, as required. For this reason, the Government of Canada will provide a process for the participation of the provinces and territories and ensure that their views are fully taken into account in the development of Canadian negotiating positions, both before and during these negotiations.

The private sectors in both the EU and Canada have shown strong public support for an ambitious and comprehensive economic agreement, both publicly and in response to the consultations undertaken by both parties in the framework of the joint study. They believe advancing a closer economic partnership would send a powerful pro-growth signal to investors and businesses within the EU and Canada as well as internationally.

A bilateral agreement with the EU could deliver commercial benefits across many sectors of the Canadian economy, including aerospace, chemicals, wood products, automotive vehicles and parts, agricultural products, and transportation and other business services.

Backgrounder:

Canada-European Union (EU) Comprehensive Air Transport Agreement

6 May 2009

The Canada-EU Comprehensive Air Transport Agreement will benefit travellers and shippers by providing air carriers with more choices in terms of destinations, flights and routes, more direct services, and the potential for lower fares. The agreement is unique in terms of the breadth of its elements and its design. It provides for:

  - increased traffic rights, initially allowing for unrestricted direct services (on an airline’s own aircraft or that of another carrier) between Canada and the EU, without any limitations on the number of flights operated or the prices to be offered. All-cargo airlines will also be permitted to operate to or from third countries on flights involving Canada or the EU.

 - strong provisions related to safety, security and a competitive environment, reflecting the importance of these areas. In particular, both sides agreed to aim for deeper cooperation, such as eventual mutual recognition of safety standards and harmonization of approaches to aviation security. 

 - to the extent possible, additional flexibility for the commercial operating environment of airlines, such as stationing of airlines representatives, ground handling of aircraft and access to ground and marine modes of transportation associated with air services.

 - the establishment of a joint committee that will facilitate cooperation, information-exchange, consultations and the overall implementation of the agreement.

The agreement also includes provisions regarding consumer interests, international cooperation, the environment, cooperation in the area of air traffic management, as well as the effective availability of airport and aviation facilities and services.

CANADA-EUROPEAN UNION (EU)

Agreement on Civil Aviation Safety

The Agreement on Civil Aviation Safety will allow the European Aviation Safety Agency (EASA) to accept certification of Canadian civil aviation products and services, reducing costs to Canadian companies and increasing competitiveness.

Aviation safety will be enhanced as the agreement commits both the EASA and Transport Canada to jointly resolve any unforeseen safety issues.

This agreement will allow the Canadian aviation industry to compete more successfully in the European market, a community of 27 countries, resulting in more opportunities for the trade of civil aviation products and services.