Harper, Sarkozy vow to work toward Canada-EU deal

QUEBEC CITY -- Prime Minister Stephen Harper has vowed to work toward a comprehensive economic agreement with the European Union, saying countries must avoid the tendency to "turn inward and erect barriers" in this time of economic turmoil.
Harper made the comment at a news conference Oct 17 after meeting with Nicolas Sarkozy, French president and current head of the EU, and Jose Manuel Barroso, the head of the European Commission.
"Without question, these times call for closer economic co-operation among key players in the global economy," Harper said.
"Among other things, this means rejecting the frequent tendency in difficult times to turn inward and erect barriers between our economies and our citizens," he said. "Indeed, we must stand against protectionism and work to lower and eliminate barriers."
Harper said the European Union and Canada have completed an economic study and agreed to begin working on negotiating an "ambitious" and "truly historic" economic partnership.
The study indicates liberalized trade in goods and services could boost Canada's economy by $12 billion seven years after implementation, Harper said.
No details were revealed but Harper said talks on the partnership will begin as early as possible next year.
Canadian negotiators will also try to hammer out an air services agreement with the EU by Nov 30, he said.
"This will offer new possibilities to our business communities and new transfers to our various markets," Harper said.
Barroso called the talks "fruitful" and said an opening of aviation markets will bring more than 1,000 direct jobs in the first year and up to 3.5 million extra passengers each year in the medium term.
He said increasing European investment possibilities in Canadian airlines will be an important step.
Harper reiterated that the fundamentals of Canada's economic and banking system are sound.
"We are, nonetheless, part of an interdependent global economy that is facing a slowdown," he added. "Thus, there is a pressing need for us to work together."
The three leaders met behind closed doors to discuss the world's financial markets and were in Quebec City for the Francophonie summit.