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European Parliament Head Tries To Save EU-Canada Trade Talks

October 22, 2016
in International
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The European Parliament president has called for emergency meetings to try to save a free trade deal with Canada.

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Martin Schulz asked for separate talks with Canadian Trade Minister Chrystia Freeland and Paul Magnette, the head of Wallonia in Belgium, which has blocked a deal on the Ceta agreement.

Mr Magnette is seeking clarity on safeguards to protect labour, environmental and consumer standards.

Ms Freeland abandoned talks on Friday, after seven years of negotiations.

She said it was clear that the EU could not reach agreement even with Canada, a country that shared European values.

All 28 EU member states support the Ceta free trade agreement, but Belgium’s constitution stipulates that each of its regional governments must back the deal before the federal government can sign it.

The French-speaking region of Wallonia has remained steadfast in its opposition to Ceta.

“We can’t stop at last mile,” Mr Schulz said on Twitter, saying he would meet Ms Freeland at 0730 (0530 GMT) on Saturday and Mr Magnette an hour and half later.

A spokesman for the Canadian trade minister was unable to confirm that the meeting would place.

The wide-ranging deal was to be signed next week.

Belgium-Canada Ceta trade dispute bedevils EU summit

Speaking outside the seat of the Walloon government on Friday afternoon, Ms Freeland told reporters: “It seems evident for me and for Canada that the European Union is not now capable of having an international accord even with a country that has values as European as Canada.”

She added: “Canada is disappointed, but I think it is impossible.”

At a glance: Ceta

Negotiations began in 2009 and ended in August 2014

The deal aims to eliminate 98% of tariffs between Canada and EU

It includes new courts for investors, harmonised regulations, sustainable development clauses and access to public sector tenders

The deal is opposed by various groups, including environmental activists, trade unionists and Austrian Socialists

Why is Wallonia standing in the way?

The Comprehensive Economic and Trade Agreement, or Ceta, was expected to boost bilateral trade, but Wallonia sees the accord as a threat to farmers and welfare standards.

The region has a strong socialist tradition. Its fears echo those of anti-globalisation activists, who say Ceta and deals like it give too much power to multinationals – power even to intimidate governments.

There have also been big demonstrations in several EU countries against Ceta and the TTIP trade talks with the US.

The Canada-EU trade deal was seven years in the making but it took far less time to unravel.

Canada has been scrambling to keep Ceta together after the Walloon regional assembly in Belgium voted last week to reject it.

The deal was completed under Canada’s former Conservative government but is a major priority for the Liberals, who are under pressure to boost the country’s economy.

They dispatched special envoy Pierre Pettigrew, a former cabinet minister with a wealth of experience on the international trade file, to help save the flagging agreement.

Federal Trade Minister Chrystia Freeland has met repeatedly over the past months with European leaders to shepherd it through, but with no luck.

The failure to clinch the EU-Canada Ceta deal is an embarrassment for the EU. Wallonia, a region of just 3.6 million people, has all but scuppered a trade deal affecting 508 million Europeans and 36.3 million Canadians.

The European Commission says this blow does not mean that Ceta is over, but it also refuses to unpick the massive text that was agreed with Canada in 2014.

Any EU free trade deals with the US, China or India now look remote. Anti-globalisation groups, anxious to protect Europe’s welfare and environmental standards, may feel they are winning the argument.

For now, any Ceta boost for small businesses and jobs has been postponed. The failure gives us a sense of how tough the Brexit talks will be, despite the UK’s current alignment with its EU partners.

One very obvious lesson from this impasse is that it is going to be difficult for the European Union to implement trade and investment deals, perhaps with anyone.

For the UK post-Brexit it suggests two contrasting implications. Negotiating a trade agreement that gives British exporters barrier free access to the EU’s single market could be a huge challenge.

For sure, there will be some important differences. For the EU, Britain is a more important export market than Canada, so some EU states will have a good deal to lose from failing to agree. But securing the agreement of all of them is unlikely to be straightforward.

On the other hand, negotiating an agreement with other countries outside the EU should become easier. To put it bluntly, the British government won’t need to care what the Walloon parliament, for example, thinks.

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Tags: belgiumbrexitBritish governmentCabinet ministercanadachinaChrystia FreelandComprehensive Economic and Trade AgreementConservative governmenteconomyeuropeEuropean CommissionEuropean ParliamentEuropean UnionFederal GovernmentFederal Trade MinisterFisheries lawFishing in CanadaFree trade agreements of CanadaheadindiaInternational relationsMartin SchulzPaul MagnettePierre PettigrewpoliticspresidentSocial Media & NetworkingSpecial EnvoyspokesmanTrade MinisterTransatlantic Trade and Investment PartnershiptwitterUnited KingdomUnited StatesWalloon governmentWalloon parliament

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