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CETA Is Dead – Long Live CETA?

By Dr. Mike Campbell
Dr. Mike Campbell is a British scientist and freelance writer. Mike got his doctorate in Ghent, Belgium and has worked in Belgium, France, Monaco and Austria since leaving the UK. As a writer, he specialises in business, science, medicine and environmental subjects.

The Comprehensive Economic Trade Agreement (CETA) between the European Union and Canada is badly, if not mortally, wounded following the refusal of Belgium to sign the accord. The Belgium (Federal) government was supportive of CETA, but the regional government for the French speaking area of Belgium, Wallonia (population ~3.5 million), refused to endorse it and without a unanimous vote in favour of the accord in its regional assemblies, the national government’s hands are tied. In order for the agreement to pass into law, it requires the unanimous support of all 28 EU states: 27 states are ready to approve it. It has taken seven years to get the deal to the point of ratification.

Objections to CETA are similar to those levelled at TTIP, essentially that the accords will give too much power to multi-national corporations and that they could allow governments to be penalised if political decisions thwart commercial concerns. This relates to the possibility of major corporations turning to a tribunal to ask for compensation if plans that they made were subsequently derailed by a change in public policy in a country or region (say, following a change in government). Critics of these deals believe that such an arrangement hands too much power to corporations (that, after all, are only answerable to their shareholders). Wallonia is further concerned that it would lose out in agricultural trade due to the threat of Canadian pork and beef imports which may disadvantage local producers.

Supporters of CETA say that it will eliminate virtually all of the tariffs on trade in goods between Canada (population ~35 million) and the EU (population ~510 million), boosting trade and creating jobs.

The CETA agreement was due to be signed on Thursday by Canadian PM Justin Trudeau, in Brussels. Last minute negotiations (read arm twisting) are still going on, but it looks unlikely that the planned endorsement will happen on time.

The opinions of British PM, Theresa May, notwithstanding, the EU CETA debacle highlights the problems that the UK will face in getting any trade deal or special access with the EU after it leaves the bloc: it just takes one dissenting voice (and not even at the state level) to derail any agreement.

Dr. Mike Campbell
About Dr. Mike Campbell
Dr. Mike Campbell is a British scientist and freelance writer. Mike got his doctorate in Ghent, Belgium and has worked in Belgium, France, Monaco and Austria since leaving the UK. As a writer, he specialises in business, science, medicine and environmental subjects.
 

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