Belgium blocks EU-Canada Free Trade Deal
https://www.theguardian.com/business...arliament-vote
Belgium's federal province of Walloonia blocks EU-Canada Free Trade Deal
Canada annoyed that the deal, several years in the making, may now be in ruins
Quote:
Originally Posted by Guardian
A landmark trade deal between the EU and Canada is in jeopardy after being rejected by a Belgian regional parliament, raising questions about other agreements such as a future arrangement between the UK and the EU.
EU trade ministers hope to sign the deal on Tuesday, but the outcome is in doubt after the Walloon parliament passed a resolution against it on Friday.
The EU and Canada have spent seven years negotiating the comprehensive economic and trade agreement (CETA), which would eliminate tariffs on most goods between the two parties.
But EU negotiators have said it can only go ahead with the unanimous agreement of all 28 member states. While several countries have raised last-minute problems, Belgium has become a stumbling block that threatens to bring down the deal.
Belgium’s federal government supports the trade deal but may be unable to give its consent because of opposition from the Socialist-led Walloon parliament, which has argued that the CETA gives too much power to multinationals.
The problems in finalising the CETA hint at the political minefield that the British government will face in agreeing a free trade deal with the EU.
Canada is running out of patience with the EU’s problems in finalising the agreement, with formal negotiations having ended in August 2014.
Speaking before the Walloon parliament vote on Thursday, the Canadian prime minister, Justin Trudeau, said: “If we find in a week or two that Europe is incapable of signing a progressive trade deal with a country like Canada, then who does Europe think it can do business with in the years to come?
“In this post-Brexit [vote] situation, where there are a great many questions about Europe’s usefulness, if Europe cannot manage to sign this agreement, then that sends a very clear message. Not just to Europe, but to the whole world, that Europe is choosing a path that is not productive for its citizens or the world. And that would be a shame.”
Following the vote, Trudeau told reporters in Alberta: “We’ve always known it’s going to require hard work right to the very end. But I’m confident that there are so many strong European countries, like France as we saw, Germany is fully on board, and others, that this deal is going to make it through.”
His earlier words were echoed by European leaders, who are increasingly concerned that the EU’s reputation as a trading bloc will be irretrievably damaged by failing to sign a deal with a close ally.
The one thing it proclaims to be really good at it can't even do properly. If this Canadian deal now falls through despite several years of talks, it will go to join the proposed deal with the United States which they now admit is dead.
I guess to borrow a phrase from No 10 spin doctors President Obama it's to the back of another queue for the EU!
Thoughts?
