EU faces major test of trade resolve with Canada deal approval

By Philip Blenkinsop
BRUSSELS, June 1 (Reuters) - A rejection or laboured
approval of a free trade deal struck with Canada could scupper
the European Union's chances of opening access to new markets,
the EU and Canadian trade chiefs said on Wednesday.
The European Commission, which negotiates trade agreements
on behalf of the 28 EU members, and Canada have concluded talks
on the Comprehensive Economic and Trade Agreement (CETA) that
could increase trade between the two by some 20 percent.
It is likely to secure backing in the Canadian and European
parliaments, but support from the 28 members is far from
certain.
"If the two closest allies in the world cannot agree a deal,
then who can?" EU Trade Commissioner Cecelia Malmstrom told the
European Business Summit in Brussels. Her view was echoed more
bluntly by Canadian Trade Minister Chrystia Freeland.
"If the EU cannot do a deal with Canada, I think it is
legitimate to say who the heck can it do a deal with," she said.
Malmstrom said her hope was that the deal would be adopted
before the end of October when it could be signed during a
planned visit to Brussels by Canadian Prime Minister Justin
Trudeau.
The Commission needs to determine in the next month whether
it can be cleared by governments alone or if each country needs
to push the trade deal through their parliaments - or in
Belgium's case four parliaments, one of which opposes the
agreement.
Bulgaria and Romania have also expressed reluctance given
Canada does not extend its visa-waiver entry system to their
citizens.
The deal is also facing opposition from campaign groups and
trade unions, who say CETA is as dangerous as their bete noire -
a planned EU-U.S. trade deal called the Transatlantic Trade and
Investment Partnership (TTIP). They say the deals hand power to
multinationals and are a threat to democracy.
Groups in Austria and Germany, which proponents say would
benefit most from a trade deal, have staged a series of
anti-TTIP and CETA rallies, with a large demonstration planned
in Berlin on Sunday.
The Dutch also voted against a trade deal with Ukraine in a
referendum in April.
"We must be mindful that all 28 countries and the European
Parliament are very demanding institutions ... We can't have
local referendums on all trade agreements," Malmstrom said.
The commissioner also expressed frustration that politicians
voiced strong support for trade deals at EU meetings then
briefed local media about their doubts.
A frustrated Commission President Jean-Claude Juncker will
urge EU leaders at a summit this month to back free trade talks
with the United States in the face of growing scepticism in
member states.