Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Under Trump shadow, key European body backs EU-Canada trade deal

Published 2017-01-24, 04:58 a/m
© Reuters.  Under Trump shadow, key European body backs EU-Canada trade deal

* CETA seen as counterweight to Trump's protectionism

* Full parliament expected to vote in February

By Philip Blenkinsop

BRUSSELS, Jan 24 (Reuters) - A planned EU-Canada free-trade deal moved closer to reality on Tuesday after a key committee advised the European Parliament to give its backing after months of protests and heated debate.

The EU-Canada Comprehensive Economic and Trade Agreement (CETA) is seen as a test of Europe's ability to forge future trade accords and as a counterweight to anticipated protectionism under new U.S. president Donald Trump.

"It's more than just a free-trade treaty with Canada. It's a statement about how we relate with the rest of the world," said Sorin Moisa, CETA coordinator for the centre-left S&D group, whose members have been divided over the pact.

"We want to shape rather than withdraw from the world, and all the more so after Trump," he told Reuters in an interview.

CETA still needs approval from the European Parliament to enter into force and lawmakers in its international trade committee voted 25-15 urging it to do so. The full parliament is due to give its verdict in mid-February.

In a debate on Monday, committee members backing the accord repeatedly warned of the threat of greater protectionism under Trump, who has withdrawn from the Trans-Pacific Partnership and plans to renegotiate the North American Free Trade Agreement with Canada and Mexico. Trade Commissioner Cecilia Malmstrom told lawmakers Canada was a welcome partner in uncertain and difficult times.

"We have an important friend and ally who seems to be at least partly disengaging from the international scene, promoting less trade, more protectionism," she said of the United States.

The EU and Canada concluded negotiations more than two years ago and eventually signed the treaty in October, but only after opposition from a region of Belgium. if the 751-seat European Parliament votes for CETA, it would only enter force provisionally, most likely in March or April in the form of import tariff removal, as it also awaits approval from the parliaments of the EU's 28 member states and Belgium's regions.

Supporters say CETA will increase Canadian-EU trade by 20 percent and boost the EU economy by 12 billion euros ($12.9 billion) a year and Canada's by C$12 billion ($9.0 billion).

CETA and the larger planned EU-U.S. Transatlantic Trade and Investment Partnership (TTIP) have proved contentious, drawing criticism from trade unions and protest groups that say it will give more power to multinationals and lead to a race to the bottom in standards. ($1 = 0.9308 euros) ($1 = 1.3268 Canadian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.