US should consider trade pact with EU-manufacturers

Tue Apr 28, 2009 9:06pm BST
 
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* US will be "left out" if EU, Canada conclude deal

* EU-NAFTA agreement idea floated

* USTR wishes EU, Canada luck in their talks

By Doug Palmer

WASHINGTON, April 28 (Reuters) - A proposed trade deal between Canada and the European Union puts pressure on the United States to begin thinking about its own trade pact with Europe, U.S. manufacturers said on Tuesday.

"The EU already has a free trade agreement with Mexico. Now they're negotiating one with Canada and that leaves us out," Frank Vargo, vice president for international economic affairs at the National Association of Manufacturers, told reporters.

European Union foreign ministers agreed on Monday to launch talks with Canada on a deal expected to generate about $27 billion in annual economic gains by cutting trade barriers.

The United States has had a free trade pact with Canada since 1989, which was folded into the North American Free Trade Agreement when Mexico joined the trade pact.

The 27 countries of the EU are as a whole the United States' largest export market, while Canada is the United States' largest single trading partner.  Continued...

 

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