The European Union set its sights yesterday on a trade agreement with Canada intended to raise the banner of liberal economic inter-nationalism at a time of global recession and rising protectionist pressures.

EU foreign ministers gave the green light to the launch of talks between Canada and the 27-nation bloc at a May 6 summit in Prague, capital of the Czech Republic, which holds the EU's rotating presidency. According to a joint EU-Canadian study, published in October, a trade accord would bring annual real income gains of about €20bn ($26bn, £18bn) for the two sides, €11.6bn for the EU and €8.2bn for Canada, within seven years of its implementation.