Prime Minister Brian Mulroney said heheld "frank" discussions with the Canadian province premiers on
the pace of free trade talks with the United States, but the
longstanding issue of provincial ratification remains to be
settled.
    Speaking to reporters after nearly five hours of meetings
with the 10 premiers, Mulroney said further discussions would
be held in June and September to discuss the role of the
provinces in approving any new trade deal.
    But he maintained progress was being made in the sweeping
talks with the Unites States that got under nearly two years
ago.
    "It appears reasonable progress is being made (in the
talks)," Mulroney said.
    Alberta Premier Don Getty agreed, "Things are running pretty
quickly now."
    The talks, launched by Mulroney's Progressive Conservative
government after concerns about protectionist sentiment in the
U.S., are aimed reducing the remaining barriers between the
world's largest trading partnership.
    But the provinces are expected to play a major role in any
new trading arrangement, and some of the provincial leaders
complained of a lack of progress on reaching a ratification
formula.
    "It's my view that we should be thinking about these things
right now, along with the questions of the substance of the
agreement," commented Ontario Premier David Peterson, who has
been highly critical of the talks in the past.
    But Newfoundland Premier Brian Peckford said an agreement
was more likely to emerge by consensus and there would be no
need for a "hard and fast formula."
    Peckford said it appears Canada is prepared to make
concessions to the United States on financial services in order
to make inroads on other bargaining areas, such as agriculture.
    Canadian published reports, quoting government sources, say
the two countries are close to reaching a trade deal and it
will involve eliminating border tariffs and many non-tariff
barriers over the next 10 to 12 years.
    A rough draft of the accord is expected to be presented to
the premiers at the June meeting while the finished document is
hoped to be presented to Congress in October.
    "It's a very tight time frame," Ontario's Peterson said last
night. "But at this moment it is tough to say what will
transpire."
 Reuter
