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The EU places 10-per-cent duties on autos and auto parts.

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Eliminating the 6.1-per-cent duty on Volkswagen Golf models imported from Europe would give the Germany-based auto maker a boost in the hotly contested compact segment of the auto market against Canadian-made Honda Civic and Toyota Corolla models.

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Similarly, BMW AG and the Mercedes-Benz unit of Daimler AG, which already lead the luxury segments in Canada, would receive an instant 6.1-per-cent advantage.

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“Enhancing Canadian exports and diversifying exports away from the U. are important economic policy goals for Canada,” Mr. “It is clear, however, that merely signing another free-trade agreement – even with a partner as important as the EU – holds no prospect of achieving either goal.” Negotiators from Canada and the EU met two weeks ago in Ottawa in hopes of wrapping up a deal by the end of next year.

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