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<title>PETTIGREW INITIATES CONSULTATIONS ON FUTURE OFCANADA-EUROPEAN UNION TRADE AND INVESTMENT RELATIONS</title>
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<p><font size="+1"><strong></strong></font><font size="+1"><strong>April 15, 2003 <em>(2:10 EDT)</em> No. 39</strong></font></p>
<p align="CENTER"><font size="+1"><strong>PETTIGREW INITIATES CONSULTATIONS ON FUTURE OF</strong></font></p>
<p align="CENTER"><font size="+1"><strong>CANADA-EUROPEAN UNION TRADE AND INVESTMENT RELATIONS</strong></font></p>
<p>International Trade Minister Pierre Pettigrew today initiated consultations with Canadians on ways to enhance bilateral
trade and investment relations with the European Union (EU).</p>
<p>"As we further our efforts to liberalize trade globally, the relationship between Canada and the EU has some untapped
potential," said Minister Pettigrew. "A trade and investment enhancement agreement would strengthen our ties with the
EU, particularly at a time when it is welcoming new members. Our objectives are clear: we want to reach an agreement
tailored to international trade in the twenty-first century. I strongly encourage Canadian companies and citizens to
participate in these consultations by expressing their ideas and opinions."</p>
<p>At their December 2002 summit, Canada and the EU committed to designing a new type of forward-looking, wide-ranging
bilateral trade and investment enhancement agreement. At the same time, leaders agreed to work toward the successful and
timely conclusion of the World Trade Organization's Doha Development Agenda for the benefit of both developing and
developed countries.</p>
<p>The Government of Canada will consult Canadians, the provinces and territories, businesses and non-governmental
organizations on the proposed agreement as well as on barriers to the European market to be addressed in the context of
ongoing World Trade Organization negotiations. A <em>Canada Gazette</em> notice seeking public submissions was published on
April 12.</p>
<p>Canadian and European trade ministers will present proposals for the design of the bilateral agreement at the Canada-EU
summit in Ottawa in December 2003. Canada-EU negotiations on the proposed agreement are expected to begin in 2004
and conclude once the results of the Doha Development Agenda negotiations are known.</p>
<p>More information on these consultations is available at <a href="https://bac-lac.wayback.archive-it.org/web/20061209070507/http://www.dfait-maeci.gc.ca/tna-nac/EU-en.asp">http://www.dfait-maeci.gc.ca/tna-nac/EU-en.asp</a></p>
<p align="CENTER">- 30 -</p>
<p>A backgrounder is attached.</p>
<p>For further information, media representatives may contact:</p>
<p>Sébastien Théberge</p>
<p>Director of Communications</p>
<p>Office of the Minister for International Trade</p>
<p>(613) 992-7332</p>
<p>Media Relations Office</p>
<p>Department of Foreign Affairs and International Trade</p>
<p>(613) 995-1874</p>
<p><a href="https://bac-lac.wayback.archive-it.org/web/20061209070507/http://www.dfait-maeci.gc.ca/">http://www.dfait-maeci.gc.ca</a></p>
<p align="CENTER"><font size="+1"><strong>Backgrounder</strong></font></p>
<p align="CENTER"><font size="+1"><strong>CANADA-EUROPEAN UNION ECONOMIC RELATIONS</strong></font></p>
<p>In 2001, the EU's share of the world's total GDP was 25.2 percent and the EU accounted for 38.1 percent of Canada's
exports of goods other than to the U.S The addition of 10 new member states by May 2004 will make the EU one of the
world's largest economies--a single market of over 480 million people with a GDP of about $13.7 trillion. This will make
the EU market comparable to the NAFTA area (with 412 million people and a GDP of approximately $15.7 trillion).</p>
<p>Canada's economic relations with the EU are characterized by strong two-way trade and investment flows; however, there
is scope for expanded trade. The EU is Canada's most important trading partner after the United States, as well as the
largest source and destination of foreign direct investment (FDI) after the United States.</p>
<p>However, Canada-EU trade accounts for only 6.6 percent of Canada's total goods and services trade, and our trade with the
EU is not growing as fast as our trade with other regions around the globe. As a result, the EU's share of Canada's total
exports and imports has been declining over the past decade.</p>
<p><strong>Trade</strong>*</p>
<p>• Canadian exports of goods to the EU amounted to $21.2 billion in 2002, and imports were $36.1 billion.</p>
<p>• For the same year, Canada exported $9.9 billion worth of services to the EU and imported $10.6 billion in services.</p>
<p>• The annual growth rate in Canadian exports of goods to the EU since 1991 is 5.4 percent, compared with 4.8 percent for
exports to the rest of the world, excluding the United States.</p>
<p>• Total Canadian merchandise exports to the EU accounted for 5.2 percent of Canada's total exports and 38 percent of
Canada's exports other than to the U.S., in 2002. </p>
<p>• Canadian imports of goods from the EU grew considerably more than Canadian exports to the EU between 1991 and
2002, climbing about 9.6 percent per annum.</p>
<p><strong>Investment</strong></p>
<p>• The stock of Canadian FDI in the EU has grown substantially during the past decade to the point where, since 1996, it is
approximately equal to EU direct investment in Canada.</p>
<p>• Canada's stock of FDI in the EU was $99.9 billion in 2002.</p>
<p>• That same year, the EU's stock of direct investment in Canada stood at $94.0 billion and accounted for 26.9 percent of all
foreign direct investment in Canada.</p>
<p>*Source: Figures are based on <em>Canada's Balance of International Payments</em> from Statistics Canada. </p>
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