CANADA LEADERS FAIL TO SET PACT ON FREE TRADE

  Prime Minister Brian Mulroney said he
  held "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."
  

