Quebec's chief negotiator Pierre-Marc Johnson is hopeful that Canada and the provinces can reach a new economic co-operation pact with the European Union by 2011.

It is the first time in Canada's international trade negotiations that the provinces are ready to bargain and can frame their demands and make commitments. He made the comments after addressing the Montreal Council on Foreign Relations.

The discussion with Europe started last May at the Canada-European Union Summit in Prague and the target is a Comprehensive Economic and Trade Agreement, or CETA that can be signed by Canada with the consent of the provinces.

"We want to go beyond tariff issues and free trade in goods and services and tackle technical and administrative barriers to trade, reciprocity, labour flexibility, education, government purchasing and competition policies, technology, research, investment, capital flows, the environment and market access, he said.

Quebec sees real advantages in developing closer liberalized ties with Europe and an agreement could boost its gross domestic product by almost one per cent, he added.

He pointed out that CETA is part of the trend toward liberalized trade, and the final agreement could be more extensive in scope than the North American Free Trade Agreement.

Source: The Gazette