MEPs split over EU free trade deal with Canada
Hopes and fears for the EU-Canada Comprehensive Economic and Trade Agreement (CETA), which has been negotiated but still needs Parliament’s backing to enter into force, were aired in a debate with EU trade Commissioner Karel De Gucht on Tuesday.
EU trade negotiators’ achievements in securing access to the Canadian public procurement market and protecting 145 EU geographical indication marks were.warmly welcomed by MEPs. Many stressed the need to win access to new markets for EU firms so as to offset their loss of business with Russia.
The key fear voiced was to do with the investor-to-state dispute settlement clause, which could enable investors to sue governments over policies perceived as harmful to business. Some political groups called for it to be removed, arguing that it should not be needed in a deal between two mature judicial systems and could be abused by multinationals seeking to sue governments over legitimate policies, such as smoking bans or cutting down on nuclear energy.
You can watch a recording of the debate via the link to the right.
What next?
The formal conclusion of the talks will be announced in the EU-Canada summit in Ottawa on 26 September this year.
The European Parliament will be asked for its consent to the deal in mid-2015.
What's in the deal?
The CETA would free up EU-Canada trade in most areas and create new investment opportunities. It is expected to boost bilateral trade in goods and services by €25.7 billion 22.9% and could lead to GDP gains for the EU of up to €11.6 billion per year.
Procedure: Commission statement with a debate