Although the EU is Canada’s second most important goods trading partner, and Canada’s second most important investment partner, there has been little interest in discussions relating to the proposed Canada – EU Free Trade Agreement (“FTA”). Going the other way, Canada is the EU’s fourth most important investment partner.  Negotiations on the Canada/EU FTA began in earnest in May 2009, and are expected to conclude within two years. A joint report released in March 2009 prepared by the EU and Canada identified a very broad range of areas for negotiation, including trade in goods, services, investment, government procurement, and labour mobility. Indeed, a draft text of the agreement has already been exchanged. Business should start to prepare for this new trade reality, as the deal would likely exceed the scope of the NAFTA.  The third round of negotiations are scheduled for April 19-23, 2010 in Ottawa.