Ottawa Citizen

Canada, EU carve out tentative deal on meats

Agreement reached on beef, pork, sources say

- MIKE BLANCHFIEL­D

Canada and the European Union have quietly reached a tentative agreement on beef and pork, one of the biggest obstacles standing in the way of a comprehens­ive trade and investment deal.

Multiple sources tell The Canadian Press the two sides recently settled on a quota that is big enough to allow Canadian meat producers to penetrate the European market, but not so big that European farmers would feel threatened.

No one is talking publicly for fear the deal could unravel, falling victim to the horse-trading that characteri­zes the final rounds of trade negotiatio­ns.

“It seems like they have found a place to agree,” said one person close to the talks who spoke on condition of anonymity.

But since the beef and pork conundrum was a potential deal-breaker for Canada, insiders are growing optimistic that the elusive agreement may now be within reach.

On Thursday, Internatio­nal Trade Minister Ed Fast was in the heart of cattle country, boasting about the market access the Canadian government had negotiated for the beef industry. He went out on a limb, saying only a few barriers remain in the trade talks.

“There’s still a very, very small handful of issues left outstandin­g that need to be resolved,” Fast said at a beef industry forum in Calgary.

“As with all trade negotiatio­ns, the toughest issues get left until the very last.”

Fast’s spokesman Adam Taylor wouldn’t confirm whether a specific breakthrou­gh had been made on beef and pork, but did say Canada has been pressing for greater access to the EU market.

“We have made that point very clear to our EU counterpar­ts,” Taylor said in an interview Friday.

“If that message has been received by our EU counterpar­ts, that’s good news for moving the negotiatio­n forward.”

Sources say there are still several contentiou­s areas, apparently including financial services, procuremen­t, cheese, fish and investor-state dispute settlement­s.

Talks have been bumped up to the highest level of government in recent months in the hopes of breaking the logjam that has held up any formal announceme­nt of a deal.

At the same time, Ottawa insiders say Prime Minister Stephen Harper wants some economic trophies to put in the showcase for his throne speech next month. On Thursday, Finance Minister Jim Flaherty announced a new plan for what he hopes will become a national securities regulator.

A Canadian source close to the talks, who insisted on anonymity, said inaccurate informatio­n on the talks has regularly leaked from Brussels from a variety of sources, including EU parliament­arians, member countries and various agencies.

“I would caution anyone to think that there’s been a complete resolution on agricultur­e across the board. Negotiatio­ns continue on these matters and a variety of other matters,” the source said.

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