Premier Endorses Improved Trading Relationship with European Union

Premier Rodney MacDonald said a stronger trading relationship with the European Union would complement government's vision for the province.

Premier MacDonald has written to the Prime Minister Stephen Harper in advance of the Canada-European Union Summit taking place in Montreal on Friday, Oct.17, expressing his support for a new economic partnership between Canada and the EU.

Europe has always been an important market for Canada, and federal efforts have been made in the past three decades to diversify and increase Canada's trade by renewing historic ties with European countries.

Premier MacDonald said now it's time to take those consultations to the next level. He said an improved economic relationship with the EU would benefit Nova Scotian and all Canadians.

"The idea of improving trade conditions with the EU fits with what we are doing here in Nova Scotia through the Atlantic Gateway concept," said Premier MacDonald. "We are trying to encourage foreign investment, shorten supply chains, and create opportunities for the people of the province."

Nova Scotia's location gives the province an advantage in overseas trading opportunities. Air and sea links between Nova Scotia and Europe, combined with improved technologies, have increased the province's potential to tap into global markets.

The European Union is Canada's second largest commercial partner after the United States. This summer, the Council of the Federation, made up of Canada's premiers, endorsed the concept of an economic partnership with the EU, possibly in the form of a free-trade agreement.

"We have to think more globally. If the last month has taught us anything, it is that we can't rely solely on the U.S. as a trading partner," said Premier MacDonald. "When the U.S. economy slows down, it has an impact here. By increasing our trading options, we further protect ourselves against economic slowdowns or recession."

Premier MacDonald said he and other premiers recognize that reaching such an agreement won't be easy, and could cover areas of provincial jurisdiction such as procurement. He said government would be prepared to consider those issues if it means better opportunities for Nova Scotians.