Prime Minister Stephen Harper addressed the British Parliament Thursday morning, focusing on a free-trade pact between Canada and the EU, the global economy and international security.

During his address, Harper thanked British Prime Minister David Cameron for his support for the pending free-trade agreement.

"It remains our hope that we will soon achieve a comprehensive economic and trade agreement with the European Union, Canada's second-largest trading partner after the United States," he said, noting a joint Canada-EU study that concluded that a trade agreement between the two would increase two-way trade by 20 per cent.

"In this matter, as in global trade matters generally, prime minister, I should like to express my deep appreciation to you and to your government, for your robust advocacy on behalf of this agreement. It will be a great benefit to all of our citizens."

The Conservatives have long sought an agreement with the EU, which Canada and the EU have been negotiating since 2009.

Harper said this week that a deal will not be signed unless it is in the country’s best interest and the Prime Minister’s Office has also downplayed suggestions that a deal will be reached ahead of the G8 summit in Northern Ireland, which takes place next Monday and Tuesday.

A number of issues are believed to still be subject to negotiation, including Canadian beef exports, country-of-origin rules for vehicles, procurement limits for provinces and municipalities, and drug-patent protection.

During his remarks, which were in conducted in both French and English, Harper spoke of Canada’s strong economic performance compared to the rest of the world and touted the benefits of trade.

“I know that, in many countries, there is a considerable debate between austerity and growth,” he said. “Let me tell you, it is a false dichotomy. You need good measures of both.

“Everyone gains in an open economy. Our businesses grow when new markets are opened.”

Harper also applauded Cameron’s work in making “tough decisions” to rein in spending, saying the British model was an example for other nations around the world who struggle with their own debts.

On the security front, Harper spoke of North Korea, Syria and Iran -- which he called a “profoundly malevolent regime” for its continuing threats to Israel.

"Iran's leaders openly brag that they will eliminate Israel from the face of the earth," he said. "This is a profoundly malevolent regime that threatens us all, and whose first victims are the Iranian people themselves."

On the issue of Syria, Harper gave no solutions to ending the ongoing violent conflict, instead noting the “grotesque dilemma” the international community faces.

While most agree that Syrian President Bashar al-Assad’s regime “must go,” Syria’s government must represent all its people, including minority groups, Harper said.

"Yet the extremist, sectarian nature of much of the opposition cannot be ignored or wished away,” he added. “And Syria cannot be allowed to become another safe haven for the hydra-heads of terrorism.”

Harper is the first sitting Canadian prime minister to formally address the British Parliament since William Lyon Mackenzie King, who was the first to do so in May 1944, weeks before D-Day.

Throughout his remarks, Harper highlighted the close historical ties between Canada and the U.K.

He noted former British Prime Minister Margaret Thatcher, who died in April this year, and who “in a time of peace, refused to accept any suggestion of an inevitable decline.”

“I would say that dealing with difficult times and moving forward is what our two countries do, have often done together and have done very well,” he said. “As we tackle the great challenges of this and future eras, we will face them together, always and we will succeed.”

Following Harper’s speech, Speaker of the House of Lords, Baroness Frances D’Souza spoke about the issue of Senate reform, noting both Canada and the U.K. have appointed upper chambers.

Harper’s trip to Europe comes amid the ongoing Senate expense scandal in Canada. Canadian Senators Mac Harb, Patrick Brazeau, Pamela Wallin and Mike Duffy have recently come under fire for ineligible expense claims.

“Today, the Canadian Senate and the House of Lords face difficult questions of reform. The future of both chambers is an issue that often preoccupies commentators and politicians on either side of the Atlantic. And I know that this is a matter of particular interest to you,” D’Souza said.

“But as we have discovered here recently, during debates on the draft House of Lords reform bill, there are no easy solutions. I shall watch developments in Canada with great interest ... who knows? Where one chamber goes, the other may follow."

With files from The Canadian Press