Free trade for more growth

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Germany/Canada Free trade for more growth

Chancellor Angela Merkel is convinced that the free trade agreement between Canada and the European Union will make a "huge contribution" to further stepping up economic relations between the two partners. She stated so during the visit of Canadian Prime Minister to Berlin.

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Chancellor Angela Merkel welcomes Canadian Prime Minister Stephen Harper with military honours at the Federal Chancellery.

The Chancellor welcomes the Canadian Prime Minister with military honours

Photo: Bundesregierung/Denzel

Relations between Canada and Germany are very good, stressed Angela Merkel after her meeting with Prime Minister Stephen Harper. "We in Germany have worked very hard for a free trade agreement between the EU and Canada." She is thus delighted that the major obstacles have now been overcome. Trade between Canada and the EU, and hence Germany, will benefit from a huge impetus, she said.

Customs duties to be abolished

To illustrate the advantages the agreement will bring, Angela Merkel gave a few examples:

  • 98.4 per cent of tariffs on trade in goods will be abolished when it comes into force.
  • Industrial tariffs will be completely abolished within seven years.
  • 94 per cent of EU agricultural exports will be exempted from customs duties.
  • EU-based companies will in future be able to bid for municipal level contacts in Canada.

And of course, Canada, with its raw materials reserves, is an extremely interesting partner, continued Angela Merkel.

Getting the democratic process moving in Ukraine

The two governments were unanimous in their condemnation of Russia’s annexation of Crimea. This violates international law, said Angela Merkel. Everything will be done to put in place a free and democratic process to prepare the presidential elections. Stephen Harper added that the elections in Ukraine can only be recognised if they take place under democratic conditions, in line with the rule of law.

Canada is an excellent partner in this context, since it is home to the third largest number of Ukrainians, said the Chancellor. For this reason Canada has extremely good links to Ukraine. Both Angela Merkel and Stephen Harper stressed that nobody wants to see a military escalation.

Europe will act as one

The Chancellor said, she hoped that economic sanctions would not have to be imposed on Russia. "But if there is any further escalation, we will act, and we in Europe will act as one."

The good relations between Germany and Canada are based on shared values and convictions. This is reflected, for instance, in their similar commitment to developing countries and on disarmament. Also the fact that almost 2.8 million of Canada’s 34 million people have German roots, contributes to the traditionally close relations between the two countries.

The German-Canadian agreement on scientific and technical cooperation signed in 1971 promoted joint research. German-Canadian cultural relations are based on a 1975 agreement.