Dairy hardball slows talks

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Other countries at the bargaining table are growing exasperated with Canada for its stonewalling of their demands to open up its dairy market as part of a major global free-trade deal.

But cracks in the Canadian government's position have begun to show as an agreement on the Trans-Pacific Partnership appears within reach.

A trade envoy for the New Zealand government at the talks in Hawaii says tough stances from Canada and Japan on dairy-market access could prevent the pact from being signed this week.

Mike Petersen tells The Canadian Press that Canada's offer on dairy is so small it's hard to take seriously.

But Petersen says the fact Canadian negotiators are actually discussing the politically sensitive issue at these meetings is significant, because they have refused to talk about dairy in the past.

The timing of a trade deal could have political implications back in Canada, where the ruling Conservatives are hoping to sign off on the agreement before an election campaign that's expected to start Sunday.

Prime Minister Stephen Harper insisted in a Bloomberg interview this week that his government will defend the interests of every Canadian industry "as best we can."

The pact between 12 countries, including Canada, the U.S., and Japan, is poised to become the world's largest trade deal in history once ratified.