CETA trade agreement unofficially in force

CETA, the free trade agreement between the European Union and Canada, officially starts today, Thursday 21 September. There is no official approval yet, because both the European member states and the European Court of Justice can still partially block the treaty.

Despite the fact that CETA arouses the necessary resistance, opponents have not been able to prevent the treaty from entering into force for the time being. Officially, the European Parliament still has to give its approval. Due to the sensitivity of the treaty, the European Commission decided that each Member State may participate in the decision-making process.

If 1 member state votes against, part of the treaty can be thwarted or amended. In the Netherlands, the Senate and House of Representatives have yet to consider the issue.

fuel trade
The purpose of the trade agreement is to simplify trade between Canada and Europe. For example, exporters no longer have to pay customs duties. European companies can also register for government tenders in Canada. Earlier, Minister Ploumen announced that CETA can provide the Netherlands with hundreds of millions per year.  

Reportedly, about 95% of the treaty will enter into force today. The European member states have yet to provide a definitive answer on a number of matters, such as mutual investments and participations in each other's companies.

Pros and cons
The agricultural sector will certainly not miss the consequences of CETA. There are both pros and cons. European cheese exporters seem to be excited about market access to Canada. However, the meat sector fears that it will have to compete with 'cheap' meat from Canada.

The environmentalists mainly see extra CO2 emissions due to the long transport distances. 

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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