Canada, Europe wrestle with stalled side deal linked to free-trade agreement

OTTAWA – Canada and the European Union are hoping the momentum of last week’s free-trade announcement will carry over into a troublesome side agreement.

Sources close to the talks say the separate Strategic Partnership Agreement — which covers non-trade matters such as human rights — may get a shot in the arm from the recent signing in Brussels of the Comprehensive Economic and Trade Agreement.

Prime Minister Stephen Harper flew to the European capital on Oct. 18 to sign an agreement-in-principle with European Commission president Jose Manuel Barroso.

The far-ranging deal improves the exchange of goods, services, investment and labour.

The other piece of unfinished business is the Strategic Partnership Agreement, which Canada and Europe began negotiating in 2011 and has been linked to the broader trade and investment pact.

Canada has been balking at the inclusion of language in a final text that affirms human rights and non-proliferation efforts.