Friday, November 8, 2013

EU, Canada Seal Free-Trade Deal

This article talks about a broad free-trade deal between European Union and Canada, which would be endorsed in 2015. This deal has been opposed by some farm sectors who are threatened by the changes brought in by the deal. The deal focuses on eliminating tariff on goods, providing wide-range access to services companies in both countries, and adjusting automobile differences that are likely to limit trade. Deals have also been made between EU, U.S. and Korea, and between E.U., U.S. and Japan. The EU-Canada deal is likely to set standards for these other deals. Sectors, like dairy farmers and European beef and pig farmers, are thought to be getting harmed by this deal, but the government will take measures to limit those effects. Dairy farmers are worried that the deal will make Canada lose its local cheese-makers. The deal is said to hurt the Canadian cheese-makers the most as it will double the export of EU cheese, but it is promised that the loss will be temporary. The deal also includes extension of European pharmaceutical patents, which is likely to raise prices of medicines in Canada after a few years. Some European parliament members were also against the deal, which delayed its getting signed. However, the agreement is productive on the whole. It will give Canada preferential access to the two main economies of the world, namely EU and U.S. The deal will also increase the trade and promote visa-free travel between EU and Canada. EU is planning to make deals with many other countries, like Japan, China and Brazil.

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