The EU and Canada signed their free trade agreement (CETA) this Sunday in Brussels, delayed by intense internal disagreements in Belgium, an episode that casts uncertainty on the next step: its mandatory ratification by each of the various Parliaments of the Union’s countries.
But actually, what is this treaty?
The CETA, which mainly aims to eliminate customs duties with a country accounting for 1.6% of its imports and 2.0% of its exports, has recently faced political frenzy and dramatization of the issues surrounding its signing.
“If Europe is unable to sign a progressive trade agreement with a country like Canada, who does Europe think it will do business with in the years to come?” questioned Justin Trudeau, the Canadian Prime Minister.
He overlooked the fact that nothing is simple in Europe, although ultimately nothing is impossible either, provided you have nerves of steel and a lot of patience.
The sticking point was mainly the possibility for a multinational to sue a state that adopts a public policy contrary to its interests.
There was no question of allowing a private tribunal to arbitrate these disputes, repeated the anti-CETA Walloons, demanding guarantees, without which they would not give their approval to the Belgian federal government.
A compromise agreement was finally reached: no real upheaval, in fact: declarations reiterating provisions already included in the treaty, advancements on the appointment of judges for the arbitration tribunal, and Belgium’s announcement that it will ask the Court of Justice of the EU (CJEU) to verify the tribunal’s compliance with European law.
After the signing ceremony, the treaty must be ratified by the European and Canadian Parliaments before coming into partial and provisional effect. The EU will then face another challenge: its necessary ratification by the various national and regional Parliaments of its Member States, so it becomes definitive.
After the drama, reality sets in: CETA is a modern and progressive agreement, opening the door to new opportunities within the framework of globalization, which is an inevitable fact and needs to be accompanied by international standards if we want to avoid a commercial wild west.
It also has the potential to set the path for future trade agreements, such as the TTIP (or Tafta), a much more ambitious and contested agreement currently being negotiated with the United States.
