March 2009 saw the formal start of negotiations towards the Comprehensive Economic and Trade Agreement (CETA) between Canada and its second largest economic partner, the European Union. The Toronto-based lobby group, the Canada Europe Roundtable for Business, supported by 60 European and Canadian corporate executives, had been pushing for this deal, for which its most vocal supporters in Europe were France’s Sarkozy and Germany’s Merkel. The agreement was signed in September 2014 and is currently in the process of being ratified.
CETA is a wide-ranging deal which includes trade in goods, intellectual property, investment, technical barriers to trade, regulatory cooperation, sanitary and phytosanitary measures and competition policy.
During the negotiations, a number of municipal councils in Canada, including Toronto’s city council, voiced their opposition and voted to demand that they be excluded from such a deal, citing issues over their ability to make decisions, particularly in relation to government procurement, one of the EU’s main interests.
Many were concerned about the deal’s proposed investor-state dispute settlement (ISDS) mechanism, which gives corporations from either side of the Atlantic the right to sue a state if new laws or regulations negatively affect their expected profits or investment potential.
In the face of an outcry from European civil society groups, the European Commission designed a new arbitration procedure, dubbed an ‘investment court system’, to replace ISDS. In February 2016, the Commission announced that the new ISDS mechanism had been included in the treaty. However many critics on both sides of the Atlantic say that this new system is largely window-dressing, does not address the core of the problem behind investor-state dispute measures, and they continue to oppose ISDS in any form.
ISDS has also been described as a clear threat to any measures aiming to tackle climate change. The greenhouse gas emissions from Canada’s tar sands oil are 23 per cent higher than those of conventional oil. As CETA will liberalise the transatlantic energy trade, it will lead to a rise in production of tar sands oil for the European market. Any government trying to limit the flow of tar sands oil in response to global warming could face an ISDS claim from an oil corporation.
As part of the negotiations, EU delegates sought the recognition of European geographical indications (GI) such as Feta cheese or cured meats. Dairy farmers in Canada were worried that EU demands would prevent them from using certain names on cheeses. Eventually, the agreement recognised 173 European geographical indications, excluding wines and spirits.
The impact of CETA on farmers in general is of particular concern. Transnational seed corporations will be handed sweeping new enforcement powers to maintain their control over seeds. Worse, the agreement will almost entirely eliminate the rights of farmers to save, reuse and sell seeds. Besides, removing tariffs on agricultural goods will lead to a loss of revenue for farmers and will only benefit large exporting farming companies.
The “Cross Border Trading in Services” chapter liberalises labour mobility. Temporary work permits can be issued to workers in certain professions from one signatory country who desire to work in the other party’s territory. In time, this will mean fewer permanent jobs, as the trend towards temporary contractual work will increase, and lower wages, caused by more workers competing for the same jobs.
In addition, CETA institutionalises regulatory convergence between the parties, which implies future cooperation on all regulations about trade in goods and services. A Joint Committee and the Regulatory Cooperation Forum are intended to deal with the harmonisation, the mutual recognition, or the conformity assessment of regulations on both sides, either in place or planned, to overcome divergences that inhibit trade. This mechanism would restrict the states’ right to regulate and grant extended regulatory power to stakeholders (i.e. corporations) involved in the process. Further, the precautionary principle, a core element of European regulatory policy, is practically absent from CETA.
In Europe, the European Council will likely sign the agreement in September or October 2016. To enter into force, the European Parliament has to ratify it as well. The ratification vote is expected to occur early 2017, after which the provisional application should be enacted. The authorities are still trying to determine if national parliaments will also have to ratify the deal. In Canada, it has to be ratified by the Cabinet. The Parliament then has to adopt implementing legislation so that Canadian legislation is in harmony with the treaty. In theory, provincial legislatures have the competence to adopt or reject it. But in practice, only the Quebec National Assembly submits the deal to its legislature. However Quebec does this as a formality: it has never rejected a trade agreement.
last update: March 2016
4-May-2016 Soy Canada Soy Canada invite l’Union européenne à honorer les engagements des négociations CETASoy Canada a demandé à la Commission européenne une explication formelle de son retard dans la finalisation des approbations de trois produits de soja génétiquement modifiés (GM).
3-May-2016 No al TTIP El Gobierno en funciones de Rajoy presiona para aprobar el CETAUn documento al que ‘Público’ ha accedido en exclusiva prueba que el Ejecutivo en funciones trabaja para que el CETA pueda aplicarse a partir del 2017, aunque no ha obtenido ningún tipo de apoyo del parlamento, ni le ha pedido que se pronuncie al respecto.
2-May-2016 Soy Canada Soy Canada calls on the European Union to honour commitments in CETA negotiationsSoy Canada has asked the European Commission for a formal explanation of its delay in finalizing the approvals of three genetically modified (GM) soybean products.
2-May-2016 EurActiv CETA runs into trouble with Dutch, Walloon parliamentsThe Dutch parliament has passed a motion rejecting provisional application of the EU-Canada trade deal, known as the Comprehensive Economic and Trade Agreement (CETA).
2-May-2016 FFII CETA: ISDS and data protectionIn case the EU would strongly act to protect our personal data, Canadian financial institutions would be able to exploit the textual shortcomings using CETA’s investor-to-state dispute settlement (ISDS) mechanism.
29-Apr-2016 Politico Walloon Parliament rejects CETAThe Walloon Parliament voted against ratification of the Canada-Europe Trade Agreement (CETA). The parliament is worried about social and environmental norms and the investor-state arbitration system.
28-Apr-2016 RTBF La Wallonie s’oppose au CETA et irrite la N-VALa Wallonie joue le grain de sable dans les rouages de l’accord commercial entre l’Europe et le Canada.
15-Apr-2016 Sputnik Valonia bloquea el acuerdo sobre la zona de libre comercio con CanadáLas autoridades de Valonia bloquearon el acuerdo sobre la zona de libre comercio entre la UE y Canadá, aprobado por el Gabinete belga, informó la cadena RTBF.
14-Apr-2016 EurActiv Romania will veto the EU-Canada trade dealRomania will not ratify the Comprehensive Economic and Trade Agreement (CETA) between the EU and Canada, as an angry reaction to the refusal by Ottawa to lift the visa requirement of its nationals.
11-Apr-2016 Le Devoir Le Canada et l’UE négocient activement pour éviter l’imposition de visasLe différend a soulevé des inquiétudes sur l’issue de l’importante entente commerciale entre l’UE et le Canada.
Le Réseau Québécois sur l’Intégration Continentale fait campagne contre l’Accord économique et commercial global (AÉCG) entre le Canada et l’Union européenne