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EU leaders hope deal will be signed as Belgian PM says regional leaders have reached agreement

The mainstream press stories below make it seem as if the CETA trade deal is almost cut and dried. But Friends of the Earth Europe tweeted:

"Belgian #CETA text needs approval of BE [Belgian] regional parliaments => then ratification by @Europarl_EN +[2]8 national Parliaments".

As the first article below notes, one concession won by Paul Magnette, Wallonia’s minister-president, means that Belgium would be able to go to the European Court of Justice to determine whether the new investor-state special tribunals are compatible with EU law.

1. Belgian politicians drop opposition to EU-Canada trade deal
2. Ceta: EU-Canada trade deal to go ahead as Belgian threat resolved

1. Belgian politicians drop opposition to EU-Canada trade deal

Jennifer Rankin
The Guardian, 27 October 2016
https://www.theguardian.com/world/2016/oct/27/belgium-reaches-deal-with-wallonia-over-eu-canada-trade-agreement

* EU leaders hope deal will be signed as Belgian PM says regional leaders have reached agreement

European Union leaders have expressed hope of signing a trade deal with Canada after Belgian politicians overcame differences that had been blocking the treaty.

The Belgian prime minister, Charles Michel, confirmed that leaders of five regional parliaments had reached an agreement with the federal government shortly after midday on Thursday. He tweeted:

Charles Michel
@CharlesMichel
“Belgian agreement on #CETA. All parliaments are now able to approve by tomorrow at midnight. Important step for EU and Canada”

The Belgian compromise came too late for an EU-Canada summit that had been scheduled for Thursday. The Canadian prime minister, Justin Trudeau, had been due to meet the EU leaders Donald Tusk and Jean-Claude Juncker in Brussels, but decided at the last minute not to get on the plane, as Belgian politicians wrangled over the agreement late on Wednesday night.

Cecilia Malmström, the EU trade commissioner leading the trade talks with Canada, said she hoped a date could be set soon to sign the accord. Tusk, the European council president, sounded a note of caution, tweeting:

Donald Tusk
@eucopresident
“I am glad for good news from PM @CharlesMichel. Only once all procedures are finalised for EU signing CETA, will I contact PM @JustinTrudeau”

The Belgian compromise – a four-page text that sits alongside the 1,600-page treaty – must be vetted by ambassadors from 28 EU member states and endorsed by Belgium’s regional parliaments. If these hurdles are cleared, the treaty can be signed and come into force on a temporary basis.

The comprehensive economic and trade agreement (Ceta), which has been seven years in the making, has stumbled near the finish line, amid strong opposition from the Belgian regional parliament of Wallonia.

The EU requires all 28 member states to support Ceta for the treaty to come into force, but the Belgian federal government, which has always backed the trade treaty, was barred from giving its consent because of opposition from regional parliaments in Wallonia and Brussels.

Paul Magnette, Wallonia’s minister-president, who had been leading opposition to the agreement, had wanted to re-open talks with Canada, but the EU institutions insisted that was impossible.

Wallonia has been nervous about exposing its farmers to cheap competition from Canadian farmers. Magnette had also raised objections to the proposed court system for settling disputes between foreign investors and governments.

One concession he won means Belgium would be able to go to the European court of justice to determine whether the new investor-state special tribunals are compatible with EU law. The four-page document also contains a guarantee that the Belgian government will assess the socio-economic and environmental impact of Ceta.

The Walloon minister-president, who has been dubbed “Super-Magnette” in the Belgian media, said: “Wallonia is extremely happy that our demands have been heard.”

The special court that Ceta would create has proved so controversial that the commission has decided it will not come into force immediately. EU member states insisted that national parliaments should have a say on aspects of the EU-Canada deal that touch on national competences.

Even if the EU and Canada sign the treaty in the coming weeks, Ceta will only become a complete and permanent legal document following ratification by at least 38 national and regional parliaments in Europe.

Full implementation of the EU-Canada trade deal would lead to the creation of an exclusive trade court to replace the investor-state dispute settlement (ISDS), the existing system for resolving trade disputes that has existed since the 1960s.

This system is written into thousands of investment contracts, including 1,400 involving EU countries. Critics have rung the alarm about the scope ISDS gives private companies to sue governments.

The cliffhanger story of the EU-Canada trade treaty is seen as a bad omen for post-Brexit Britain as it seeks a trade agreement with Europe.

Britain’s secretary of state for trade, Liam Fox, told MPs on Wednesday that the difficulties over Ceta underscored the importance of the UK signing a trade deal before it leaves the EU.

The UK would only face a procedure similar to Ceta, he said, if it failed to conclude a trade agreement before the end of two years of divorce negotiations under the EU’s article 50.

“That sort of procedure would only be undertaken were we to leave the European Union after our article 50 period without any agreement whatsoever and were looking to seek a new FTA [free-trade agreement] from outside,” he said.

Some observers think that is a likely prospect, as the article 50 divorce talks are dedicated to unwinding Britain’s EU membership and European leaders will not sign a trade deal before agreeing the divorce settlement.

Fox, a prominent leave campaigner, said the experience of Ceta might cause some to think twice before seeking a trade agreement with the EU. “Those who put politics ahead of prosperity might want to think twice,” he said.

2. Ceta: EU-Canada trade deal to go ahead as Belgian threat resolved

Katie Forster
The Independent, 27 Oct 2016
http://www.independent.co.uk/news/world/europe/ceta-canada-eu-trade-deal-belgium-justin-trudeau-charles-michel-a7382851.html

* ‘All parliaments are now able to approve by tomorrow at midnight. Important step for EU and Canada,’ tweets Belgian Prime Minister Charles Michel

Belgium has reached an agreement with its regional powers to back a landmark free trade deal between the EU and Canada.

The Comprehensive Economic and Trade Agreement (Ceta) could be signed within days if adjustments made by Belgium are approved by the other 27 EU nations.

Canadian Prime Minister Justin Trudeau was supposed to sign the agreement today at a summit in Brussels, but cancelled his trip after the small Belgian region of Wallonia stalled the negotiation process by rejecting the deal.

“Belgian agreement on Ceta. All parliaments are now able to approve by tomorrow at midnight. Important step for EU and Canada,” tweeted Belgian Prime Minister Charles Michel.

Donald Tusk, President of the European Council, said he welcomed the news, but would only contact Mr Trudeau “once all procedures are finalised for EU signing Ceta”.

Belgium was not able give its assent to the deal, which has taken seven years to negotiate, without the backing of the French-speaking Wallonia region.

Wallonia, which is smaller than Wales and home to just 3.5 million people, voted 46 to 16 against the deal because of fears local workers would be laid off if the agreement leads to cheaper farming and industrial imports.

The deal’s proponents say it would yield billions in added trade through customs and tariff cuts and other measures to lower barriers to commerce…

Paul Magnette, the president of Wallonia, said he was sorry he made Canada and Europe wait, but insisted “what we achieved here is important”.

“We always fought for treaties that reinforced the social and environmental standards, protect the public services and that there is no private arbitration,” he told reporters. “All this is achieved as of now.”

“I am sorry for all the other Europeans we made wait and for our Canadian partners. But if we took a bit of time, what we achieved here is important, not only for Wallonia but for all Europeans,” said Mr Magnette.

Alex Lawrence, the spokesman for Canada’s trade minister, said hours before that the country was prepared to sign the deal whenever Europe is ready.

And Mr Trudeau told the Canadian Parliament: “We are confident that in the coming days we will see a positive outcome for this historic deal.”

Europe’s failure to sign Ceta was highlighted during the UK’s EU referendum campaign as one reason Britain would be better off outside the union.

But it has also been underlined as a sign that the UK will have difficulty organising its own free trade deal with the EU if it leaves the single market after Brexit talks.