WINNIPEG -- A left-leaning think-tank has issued another warning that a free trade deal between Canada and Europe could kill jobs rather than create them.

The Canadian Centre for Policy Alternatives says the proposed Comprehensive Economic and Trade Agreement could cost Manitoba up to 3,800 jobs.

The think-tank, which says it focuses on issues of social and economic justice, argues the deal could wipe out rules in provincial and municipal government contracts that set quotas for local hiring and purchasing.

The report also suggests any deal could add to an existing trade imbalance, which sees Manitoba export mostly raw material to Europe while importing finished products.

The federal government has predicted a much more positive outcome.

It says Manitoba would gain through lower tariffs on agricultural products, electronics and other goods.