On Friday, October 18, the European Union and Canada signed a major free-trade agreement, the first of this kind between the EU and another G8 country. This “Comprehensive Economic and Trade Agreement” (CETA) should seriously boost goods and services trade while increasing investment possibilities. Even though unions are only partly satisfied, this deal could serve as a reference in the negotiations opened with the United States in preparation for the largest free-trade area in the world. Finally, Europe is also looking towards Asia. Indeed, a deal is being negotiated with Japan and the Twenty-Eight gave their consent, on October 18, to the start of negotiations for an investment deal with China. (Ref. 130640)
This agreement with Canada marks the end of a bargaining cycle launched in May 2009, with only the last technical and legal aspects to settle now. Then, the Member States and European Parliament will have to ratify the text before it comes into force – not before 2015.
Stumbling blocks. Once implemented, the agreement is expected to increase bilateral trade in goods and services by 22.9% or €25.7 billion, fostering growth and employment on both sides of the Atlantic. Overall, the EU-Canada agreement could lead to GDP gains for the EU of up to €11.6 billion per year. In 2011, trade between Canada and the EU amounted to about €86 billion, making the EU Canada’s second trade partner, far behind the US.
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