EU, Canada try again to clinch fish deal

By Peter Blackburn

BRUSSELS The European Union and Canada held further technical talks on Wednesday to try to clinch a deal on fishing rights in the North Atlantic despite Spanish threats to block any accord it was unhappy with.

The European Commission, which negotiates for the EU, was due to report to member state officials later on Wednesday on progress in resolving the dispute which blew up after Canada seized a Spanish vessel in early March for alleged overfishing.

"We have now entered a very delicate phase...we remain hopeful that an agreement can be found that will satisfy all sides," European Commission spokesman Marco Zatterin said.

Spain said on Tuesday it would block any agreement with Canada unless the EU gets half the permitted 27,000 tonne 1995 catch of Greenland halibut, or turbot, in fishing grounds managed by the Northwest Atlantic Fisheries Organisation (NAFO).

It formally rejected an outline accord reached on Monday by the European Commission and Canada which would have slashed Madrid's share of catches by 75 percent.

Although the EU could approve by majority vote an eventual deal, it was making every effort to satisfy Spain because it was the member state with most at stake.

"It is normal when we reach a crucial stage that tension mounts and sticking points emerge," Zatterin said. "This is a time for steady nerves while we continue the search for a deal."

EU sources said new top level diplomatic moves, including contacts between Commission President Jacques Santer and Canadian Prime Minister Jean Chretien, were being made to clear the remaining difficulties.

Chretien said in Ottawa on Tuesday he believed agreement was very near.

"I think the negotiations are giving positive results and there are only some minor points to resolve," Chretien told reporters. "We hope to have a final offer within hours."

EU sources said one of the main outstanding disagreements was over the amount of Greenland halibut already caught by Spanish vessels this year.

Canada puts the figure at 10,000 tonnes, or three times the quota fixed by NAFO on February 1, while the EU estimates Spanish catches at around 7,000 tonnes.

The EU, which rejected the NAFO quota allocation, set its own autonomous quota of 18,630 tonnes, or 69 percent of the total allowable catch.

Although the autonomous quota will be discussed by EU fisheries ministers in Luxembourg on Thursday, no decision was expected.

"It's not the right move while negotiations continue," one EU official said.