Canada, EU one step closer to trade deal
OTTAWA • Amid doubt Europe could conclude negotiations on a free-trade deal with Canada, the tides turned Thursday as Belgium came to an internal consensus on conditions for signing the Comprehensive Economic and Trade Agreement (CETA).
European Union ambassadors agreed Thursday the 27 other states in the EU would accept Belgium’s terms. That decision still needs to be formalized by “written procedure,” according to France’s delegation to the EU.
The process is expected to end at midnight on Friday, the same deadline the Belgians set for their parliaments to formally adopt a declaration setting out their asks.
A signing ceremony Prime Minister Justin Trudeau was supposed to attend Thursday had been cancelled as squabbling continued over a vocal Belgian region’s blocking of the deal.
But in a last-ditch effort, Wallonia’s prime minister, Paul Magnette, met with other Belgian leaders to hammer out a joint declaration. Magnette came out of talks Thursday “extremely happy” that Walloon demands were met.
Those included a request to have the European Court of Justice assess investmentstate dispute mechanisms in the deal — and an assertion that Belgian regions won’t ratify the deal if mechanisms remain as is.
Belgium will formally take its declaration to the EU after its parliaments approve it. If European ministers are on-board, they can proceed to a formal vote and approval of CETA.
That’s barring last-minute interventions from other states, which haven’t formally signed yet either.
EU leadership seemed optimistic Thursday. European Council president Donald Tusk tweeted that the Belgian accord was excellent news and he planned to contact Trudeau “only once all procedures are finalized for EU signing CETA.”
International Trade Minister Chrystia Freeland told reporters Thursday afternoon that, “While today, this morning, we absolutely had a positive development, there are still many steps to be taken and I want to be sure that Canadians appreciate that even after signing, the process will not yet be complete.”
Observers expected the official signing ceremony could be rescheduled for as early as this Sunday.
Once the deal is signed, the next step will be ratification by the European Parliament.
It will take two to four years for full ratification to be completed, Schulz estimated Thursday.
Belgium’s declaration will likely stand alongside the trade deal as a separate document.
Key points from the Belgians include that parties reserve the right to leave the deal, or stop provisional implementation; that implementation be regularly evaluated on environmental and socioeconomic impacts; and that regions acting as “federal entities,” such as Wallonia, can protect agricultural products where they expect CETA to cause a “market imbalance.”
The biggest question mark, though, will likely come from a request to have the European Court of Justice evaluate “investment court” provisions with CETA — and their compatibility with the European treaty system.