Summary of Canada-EU free trade deal tabled

A summary of thetentative free trade agreement between Canada and the European Union, which has been praised by exporters but drawn criticism from some dairy farmers, wastabled in the House of Commons in Ottawa today.

But the summary came out as a report suggested that European exporters will save three times as much in annual duty payments as Canadian exporters.

Hailing it as the biggest deal ever concluded by Canada, Prime Minister Stephen Harper stood in the House and tabled the 30-page"technical summary of final negotiated outcomes" relating to theComprehensive Economic and Trade Agreement (CETA).

"It's ahistoric win," Harper said.

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Harper signed the tentative deal inBrussels on Oct. 18alongside European Commission President Jose ManualBarroso.

The agreement would provide Canada with preferential market access to the 28-member European Union, and its more than 500 million consumers and $17 trillion in annual economic activity.

The agreement still needs to be fine-tunedand full ratification most likely won't happen for another two years.

But the agreement is expected to be a boon for Canadian exporters by providing full access to EU markets byremoving98 per cent of EU tariffs ona wide range of Canadian products, including agricultural, seafood,metals and mineral products.

The deal would also allowCanadian automakers to export more cars andCanadian farmers to export more beef, pork and bison.

Once in place, Canadianconsumers could also see cheaper prices on items that includefood, wines and high-end Europeancars.

Although a number of export industries have given the deal high praise, some dairy farmers and cheese producers have expressed concerns.

The deal would allowthe EUto sell Canada 29,000 tonnes of cheese, an increase from the current 13,000 tonnes. Some farmersfear thoseprovisions could threaten jobs and industries in Canada.

Highlights of the summary include:

• Full elimination of duties on all non-agricultural goods.
• 99 per cent of industrial goods will be duty free immediately (100 per cent afterseven years), including forestry, chemical and plastic products that will be duty free on Day 1.
• 95.5 per cent of fish and seafood products will be duty free immediately (100 per cent after seven years), includinglive lobster, frozen lobster and frozen shrimp.
• 94 per cent of agricultural tariffs will be eliminated, with tariffs immediately eliminated from items includingmaple syrup, fresh and frozen fruits, cherries, fresh apples andcat and dog food.
• Canadian beef producers will be able to sell50,000 tonnes of beef;pork producers will be able to sell 81,000 tonnes of pork
• There will also be duty free, quota free access to the EU dairy market.

But The Canadian Press reported that according to an internal EU analysis of the agreement,European Union exporters will save more than $670million annually in duty payments compared with about $225 millionannually for Canada's.

Part of the reason for the gap on tariff elimination is thatEurope currently exports more to Canada than the reverse, meaning EU exporters currently pay more duties

International Trade Minister Ed Fast said thefederal government will more than make up for
the lost $670 million in tariff revenues.

"We expect that the gains on the economy will more than outstripthe tariff losses. At the end of the day, this will be a net fiscalbenefit to Canada," he said.