Free trade is not a short term policy tactic. If Canada and Europe engage in free trade it brings along economies of scale issues that America would have to address. It might, however, bring employment to low wage regions!
Economies of scale helps large firms by reducing the number of separate plants to produce a given product. Where would these fewer plants be located? Migration of production from China?
http://news.nationalpost.com/2012/05/19/g8-summit-stephen-harper-says-free-trade-an-alternative-to-austerity-cutbacks/
Scratches to Sketches