CETA Deal Remains Controversial

Henry Srebrnik, [Charlottetown, PEI] Guardian
 
The European Union trade deal with Canada known as the Comprehensive Economic and Trade Agreement (CETA) provoked huge opposition across Europe, with critics warning that it could lead to the break-up and privatisation of public services which could be deemed to be monopolies under its competition rules.

Hence the initial opposition by the French part of Belgium known as Wallonia. The EU requires all its member states to consent to the treaty -- some 38 national and regional parliaments across Europe must approve before it can be implemented.

This means that in Belgium, for important national deals like this one to pass, its federal, regional and community bodies must all give their approval.

Only after further negotiations did a new version that provides guarantees for farmers and a corporate dispute settlement system allow Wallonia to agree to the deal.

The Belgians insisted that implementation be regularly evaluated on environmental and socioeconomic impacts and that regions such as Wallonia can protect agricultural products where they expect CETA to cause a “market imbalance.”

The Belgians also will refer to CETA’s most controversial component, the Investor Dispute Settlement System (ISDS), to the European Court of Justice (ECJ) for a ruling.

It set a precedent for talks between the European Union and the United States over an even larger trade deal: the proposed Transatlantic Trade and Investment Partnership.

“We had to fight CETA to prepare for TTIP, because that free trade deal is 10 times worse,” remarked Luc Hollands, who in 2013 helped start a movement against free-trade agreements and austerity policies.

Wallonia’s prime minister, Paul Magnette, met with other Belgian leaders to hammer out a joint declaration and declared himself “extremely happy” that Walloon demands were met.

Wallonia has above-average unemployment and was worried that cheaper Canadian goods might threaten the livelihoods of its people. In economically depressed regions voters may not see trade deals as a good thing.

Wallonia’s economy has stagnated in recent decades, as its steel mills have closed down. Global competition has squeezed small businesses dry.

The prime minster of the more prosperous Flemish region, Geert Bourgeois, said the original 1,598-page text of the trade deal stood, with the addendum serving as a “clarification.”

Other countries are also wary. Bulgaria had also been threatening to veto the trade agreement if Canada didn’t guarantee visa-free access for its citizens. But its government formally accepted the trade pact, with any remaining concerns to be met during the ratification process.

Prime Minister Trudeau finally signed the deal in Brussels on Oct. 30 and expressed hope that the other EU members will come aboard soon.

It may take two to four years for full ratification across the EU to be completed, and parties to the deal reserve their right to opt out, if they can’t gain majority approval in their parliaments.

Supporters of CETA contend that failure to agree to the agreement would have undermined the EU’s ability to forge other deals and would have further damaged its credibility, which is already in trouble due to the Brexit vote in Britain to leave the EU, and disputes over the migration crisis.