Agreement on CETA, what does it mean?

What interest does CETA serve?
The CETA treaty is primarily intended to stimulate economic growth. For example, trade duties on goods and services are being abolished and measures have been included that stimulate and protect investments. Reportedly, opening each other's markets could generate billions in economic growth.

How long has CETA actually been going on?
The much-discussed treaty has been in place for years. Negotiations on a trade agreement between the EU and Canada started in 2009, 11 years ago now. In October 2013, the EU and Canada reached an agreement on the main features of the treaty. These were formally recorded in September 2014. In July 2016, CETA was submitted to the Council of the European Union, which had to decide before the end of 2016. The Belgian province of Wallonia raised objections, which delayed approval, but an agreement was later reached. The agreement was signed by the European Council and Canada on October 30, 2016, and the European Parliament also agreed on February 15, 2017. With the agreement of the European Parliament, it was decided that the provisional application of CETA would enter into force on 21 September 2017. The provisional application means that the trade agreement enters into force without trade in financial services and provisions on conflict of interests.

The political proponents and opponents of the treaty?
Let us first say that CETA is divisive. In society, but especially in politics. This is also evident from the voting results, in which only a narrow majority was achieved. In the run-up to the voting meeting, Minister Sigrid Kaag (International Trade) had to lobby hard to achieve a majority. VVD, CDA, D66 and ChristenUnie, including independent MP Van Haga, voted in favor of ratification. The Christian Union was initially opposed, but later changed its mind. All other opposition parties voted against the agreement. 

What are the biggest stumbling blocks?
Food watchdog Foodwatch recently expressed its concerns about the CETA treaty in a Radar broadcast. Foodwatch came up with an example of where the Netherlands could run into problems if it decides to agree to the trade agreement including the International Court System (ICS), where the agreement has largely stalled to date. The ICS is an international tribunal (court) where large multinationals can submit claims if they believe that they have been (financially) disadvantaged by government decisions.

If the trade treaty is to be implemented in its entirety, we will also have to deal with the ICS in our trading system in the Netherlands. There is no point in falling back on national law, because the tribunal's decision overrides national law and is binding. The ICS is therefore one of the biggest hurdles that Dutch parties stumble over. We may not always be aware of it, but there are many (American) multinationals with interests in the Netherlands. Think of the sports brand Nike, electronics giant Apple and soft drink manufacturer Coca-Cola.

Foodwatch highlights their importance in a so-called 'sugar tax', which will combat obesity. In short, the sugar tax is a tax levied on sugary foods to stop the excessive use of sugar. There are now 44 countries that have introduced the tax, and it is clearly visible that the tax is working: sugar consumption has decreased considerably. Foodwatch would like to see a sugar tax also introduced in the Netherlands, but with CETA in the wake, this could be a very difficult story. A multinational such as Coca-Cola can see this as a detriment to profits, after which it can submit a claim to the Netherlands via the ICS. The chance that our country will then introduce the tax is actually nil, because the claims often involve astronomical amounts.

What impact does CETA have on agriculture?
CETA mainly has an impact on the meat sector. Farmers are afraid that they will have to compete with Canadian meat that is cheaper and does not meet European requirements. In Canada, the animal welfare requirements are not as strict as those in the Netherlands. Hormone-induced meat and antibiotic use are still commonplace there. Dutch farmers have had to invest millions to meet all European and national requirements. Now there is a threat that the government will agree to a treaty that will open the door to meat from a country that does not meet European standards. 

Is the light finally green for CETA? 
No. This is because a majority in the Senate still seems far away. An agreement in the House of Representatives does not immediately lead to the green light. The next action would probably be nothing more or less than stalling for time. A vote in the Senate can be postponed for a while due to several rounds of questions. It may therefore take some time before the Netherlands actually gives the green (or red) light for CETA.