Known by its acronym CETA (Comprehensive Economic and Trade Agreement), the EU-Canada free trade agreement, signed by the two parties on 30 October 2016 and ratified by the European Parliament on 15 February, then by the Canadian Parliament on 16 May, will enter into force provisionally on Thursday 21 September.
CETA will be implemented fully as soon as all the EU member states have ratified it, in line with their respective constitutional requirements – paving the way for implementation of the arbitration mechanism provided for the in the agreement to settle disputes between investors and states (the Investment Court System - ICS), which was called for to replace the previous ISDS systems.
CETA is part of the wider framework of the strategic partnership between the EU and Canada. This has been implemented provisionally since 1 April and authorises strengthened cooperation in strategic areas of common interest such as the climate, security, and foreign and security policy.
In a press release published on 20 September, the Commission underlines CETA's gains for European companies and consumers: - savings on customs duties (€590 million per year); - market opening for services and the unprecedented opening of public procurement (Canada will open its public procurement at federal, provincial and municipal levels); - opening of the Canadian agricultural market for key EU products like cheese, wine and spirits, processed agricultural products, and also the protection of 143 EU geographical indications in Canada; - arbitration of investment disputes with a more transparent and fairer mechanism that respects the right of states to regulate.
"This agreement encapsulates what we want our trade policy to be – an instrument for growth that benefits European companies and citizens, but also a tool to project our values, harness globalisation and shape global trade rules", European Commission President Jean-Claude Juncker commented, giving assurances that CETA "has been subject to an in-depth parliamentary scrutiny which reflects the increased interest of citizens in trade policy".
"The intense exchanges on CETA throughout this process are testimony to the democratic nature of European decision making and I expect member states to conduct an inclusive and thorough discussion in the context of the ongoing national ratification processes of the agreement. Now it's time for our companies and citizens to make the most out of this opportunity and for everyone to see how our trade policy can produce tangible benefits for everyone", Juncker added.
European Trade Commissioner Cecilia Malmström, who steered the finalisation of the CETA negotiations, meanwhile hailed "a modern and progressive agreement, underlining our commitment to free and fair trade based on values. [CETA] helps us shape globalisation and the rules that govern global commerce. Moreover, CETA underlines our strong commitment to sustainable development and protects the ability of our governments to regulate in the public interest".
On Wednesday, the environmental NGOS Greenpeace and Friends of the Earth deplored the early implementation of CETA, without a real consultation of citizens.
Greenpeace warned against CETA's threats to food safety and agricultural standards. "It is unacceptable for CETA to come into force before national parliaments have had their say. Canada has weaker food safety and labelling standards than the EU, and industrial agriculture more heavily dependent on pesticides and GM crops. CETA gives Canadian and US multinationals the tools to undermine rules concerning cloning, GM crops...", the NGO warned, calling on Europe’s national parliaments to reject the agreement.
Friends of the Earth also called on the national parliaments to reject CETA, deploring the anti-democratic nature of its provisional implementation. It warned against CETA's risks for European citizens on consumer protection, food standards and safety, energy policy and the fight against climate change, and criticised its arbitration system for investment disputes which would enable foreign investors to take governments to court for adopting a legitimate public policy.
The European Trade Union Confederation (ETUC) meanwhile deplored the final text of CETA for "not [being] fully in line with our expectations" when it comes to public services, investment protection and the enforceability of labour rights. The ETUC thus called on the European Commission and Canadian government to trigger the review clause of the sustainable development chapter to include enforceable labour rights. In addition, ETUC calls for CETA and all post-CETA trade and investment deals negotiated by the EU to ensure workers’ rights are given the same importance as investors’ rights, and for public services and environmental and food safety standards to be safeguarded. (Original version in French by Emmanuel Hagry)