Both Canada and the European Union are signalling tonight that agreement has been reached in principle on a free trade agreement between the two. Prime Minister Stephen Harper will travel to Brussels tomorrow to conclude the deal with the President of the European Commission, José Manuel Barroso. Certain industry sources confirm to CBC News that Canada has agreed to raise cheese import quotas to 37,000 tonnes from 20,000, and to increase Europe’s share of that to 30,000 tonnes from 13,000. In return, it is expected Canada has received concessions on beef and pork. It was reported the two sides reached a deal on those issues last month. A trade source privy to the negotiations told CBC News that quotas would be phased in by sector over three, five or seven years, giving producers in Canada and in Europe time to adjust. The deal is worth an estimated $1 billion to the beef and pork industries, the trade source said. Reports say the draft agreement is now in the hands of provincial premiers for their reaction. More bedtime reading for Premier Kath. Let’s hope the deal is cinched. We have got lots to sell them. Bloomberg
