European Union (EU), Canada strike free trade deal Friday Oct 18,2013

Canadian Prime Minister Stephen Harper and European Commission President Jose Barroso shake hands as they exchange documents during a ceremony on Oct. 18, 2013 at the European Commission in Brussels, Belgium.

The European Union (EU) and Canada on Friday reached an agreement on their free trade deal, aimed at boosting the two sides’ economic growth.

European Commission President Jose Manuel Barroso and Canadian Prime Minister Stephen Harper reached a political agreement on the key elements of the free trade agreement, the Comprehensive Economic and Trade Agreement (CETA),a European Commission release said

It will be the first free trade agreement between the EU and a G8 country

According to the EU, the agreement is expected to increase bilateral trade in goods and services by 23 % or 26 billion euros (about $35 billion)

The overall benefits of the agreement are expected to raise the level of the EU’s annual GDP by some 12 billion euros a year