I’m sorry, but this is huge. Huger than huge. Hugeastic. Hugeriffic.

Canadian and European officials say they plan to begin negotiating a massive agreement to integrate Canada’s economy with the 27 nations of the European Union, with preliminary talks to be launched at an Oct. 17 summit in Montreal three days after the federal election.

Trade Minister Michael Fortier and his staff have been engaged for the past two months with EU Trade Commissioner Peter Mandelson and the representatives of European governments in an effort to begin what a senior EU official involved in the talks described in an interview yesterday as “deep economic integration negotiations.”

If successful, Canada would be the first developed nation to have open trade relations with the EU, which has completely open borders between its members but imposes steep trade and investment barriers on outsiders…

A pact with the United States would be politically impossible in Europe, senior European Commission officials said.

Understand what this means. If we pull this off, then Canada would be the only developed country (Mexico has its own deal) with guaranteed access to both the European Union and the United States — the two richest markets in the world, with 800 million consumers between them. Locating in either the US or the EU would give a firm guaranteed access to only one. Only by locating in Canada would they get both.

It also brings with it the usual benefits of free trade, notably cheaper prices and greater selection for consumers. And this:

The proposed pact would far exceed the scope of older agreements such as NAFTA by encompassing not only unrestricted trade in goods, services and investment and the removal of tariffs, but also the free movement of skilled people and an open market in government services and procurement – which would require that Canadian governments allow European companies to bid as equals on government contracts for both goods and services and end the favouring of local or national providers of public-sector services.

But it’s the strategic advantages that are so compelling. Now imagine that we also sign a free-trade agreement with India (or Japan), as the Canadian Council of Chief Executives, among others, have recently advocated. We would stand at the crossroads of international trade and investment.

And if other countries should join us? So much the better. We lose our initlal strategic advantage as the unique point of intersection. But we gain from having more trading partners — and we have the pleasure of knowing that we’ve helped to propel the world closer to the ideal of universal freedom of trade. 

Now that’s a vision I can get behind. Continue…