Brussels, 05/07/2016 (Agence Europe) - Although its legal service concluded that it was an agreement of exclusive EU competence, the European Commission took a step backwards on Tuesday 5 July, proposing the signature and conclusion of the EU-Canada free trade agreement (CETA) as a “mixed agreement” - which means that its ratification by the EU requires not only the approval of the European Parliament but also that of the national parliaments.
The Commission decided to propose the signature and conclusion of the CETA as a mixed agreement “to allow for a swift signature and provisional application, so that the expected benefits are reaped without unnecessary delay”, as European Commissioner for Trade Cecilia Malmström said at a whirlwind conference at the end of the College of Commissioners meeting, on the sidelines of the European Parliament's plenary session in Strasbourg.
“This is without prejudice to its legal view, as expressed in a case currently being examined by the European Court of Justice (CJEU) concerning the trade deal reached between the EU and Singapore”, she said. At the end of October 2014, the Commission asked indeed the CJEU for an opinion on the competence to sign and ratify the EU-Singapore free trade agreement, which had been initialled in September 2013 (see EUROPE 11188).
“CETA is our best and most progressive free trade agreement, and I want it to enter into force as soon as possible. It provides new opportunities for European companies, while promoting our high standards for the benefit of our citizens. I have looked at the legal arguments and I have listened to the heads of state or government and to national parliaments. Now it is time to deliver. The credibility of Europe's trade policy is at stake”, European Commission President Jean-Claude Juncker commented. Juncker had noted at the European Council on 28-29 June that most of the EU28 leaders were in favour of a mixed agreement (see EUROPE 11583).
Before announcing this proposal - which paves the way for the signature of CETA by the 28 EU member states at the next EU-Canada summit in October, then if the European Parliament gives its consent by the end of 2016 (and if it is ratified by the Canadian Parliament over the same time period) for its provisional application in early 2017 - Malmström spoke at length about the advantages of this trade agreement, which is “the most ambitious trade agreement that the EU has ever concluded”.
CETA “will help to generate much-needed growth and jobs while fully upholding Europe's high standards in areas like food safety, environmental protection, and people's right to work”, she said. She underlined its advantages for European consumers and companies, both in terms of saving customs duties and in terms of opening up services and public procurement, as well as its advantages for EU agriculture (through the protection of 145 EU geographical indications in Canada) and for investors (through a new, more transparent dispute settlement system, which is fairer and respects more the right of states to regulate).
The completion of the legal scrubbing of the text of the agreement finalised on 29 February, and of the agreement concluded by the two parties on its investment protection chapter (EUROPE 11501), had paved the way for the process of both parties signing and ratifying the CETA.
The EU and Canada formally concluded their bilateral Comprehensive Economic and Trade Agreement (CETA) on 26 September 2014 (EUROPE 11164), a year after an agreement in principle on the content of this agreement on 18 October 2013 (EUROPE 11948, 11947). (Original version in French by Emmanuel Hagry)