On Wednesday afternoon, the European Parliament gave its approval for the entry into force of the CETA free trade agreement. This will allow Europe and Canada to trade unhindered. Perhaps President Trump has given the final push in the right direction.
Hundreds of opponents demonstrated outside the doors of the parliament building in Strasbourg, but inside a total of 408 MPs voted in favor of the European-Canadian trade agreement. 254 members were against and 33 abstained. The treaty will enter into force in April at the earliest. Customs tariffs will disappear as a result.
Canada and the European Union negotiated the treaty for six years. It has now been given the green light. Several speakers indicated in the debate that the cooperation is a signal to US President Trump. He is following a protectionist course, in which other countries are actually cooperating. Opponents are afraid that especially the large multinationals will benefit from the treaty.
The treaty is far from final. The Walloon government made headlines last fall after it opposed the signing. The treaty was subsequently amended, but not completely. The European Court of Justice still has to decide whether the new investor-government dispute settlement system is compatible with European law, writes Felt† This process can take years and is not without fits and starts. The arbitration mechanism ICS, about which the Walloons have so much doubt, is the hottest topic of the treaty.
The European Union signed the treaty at the end of October. The European Parliament is now giving its approval, but that has yet to happen in Canada. Trade between Europe and Canada is worth a total of about 25 billion euros per year. National parliaments and several regional parliaments still have to agree to the decision of the European Parliament. There is also little support for the treaty in the Netherlands. Only VVD, D66 and CDA voted in favour.
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