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08/12/2016

Belgium plans new talks to break EU-Canada trade deadlock

Trade & Society

Belgium plans new talks to break EU-Canada trade deadlock

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Belgium’s political leaders are set for a new round of talks to try and resolve differences that have blocked a landmark EU-Canada free trade deal.

Belgian Foreign Minister Didier Reynders said representatives from the federal government and the country’s linguistic communities would resume their talks in the morning on Thursday (27 October,) after adjourning before midnight Wednesday without an agreement.

The stakes are high amid warnings that the EU’s international standing, already battered by Britain’s shock June Brexit vote, will suffer further if seven years of trade negotiations go to waste because of internal Belgian politics.

Reynders had earlier reported the sides were near a consensus that would allow Belgium to overcome objections from its French-speaking communities and support a trade deal which must be endorsed by all 28 EU member states.

But he added technical issues still needed ironing out.

We are awaiting a definitive response from the various communities, Reynders said as the talks wrapped up for the day.

EU leaders had voiced optimism that Belgium’s federal government could win over the holdouts by late Wednesday.

But Rudy Demotte, president of the southern French-speaking Wallonia’s parliament, cautioned “we have technical discussions which are complicated”.

Canada ready to sign

With no agreement in sight, Canadian Prime Minister Justin Trudeau postponed plans to travel to Brussels on Thursday to sign the Comprehensive Economic Trade Agreement (CETA) with EU leaders.

“The Canadian delegation will not be travelling to Europe tonight,” said Trudeau’s office.

“Canada remains ready to sign this important agreement when Europe is ready,” it said in the statement.

When and if the documents are agreed by the Belgian politicians, they must be sent for review to the ambassadors of all 28 EU member states, then likely return to the Walloon parliament and other Belgian government institutions.

Reynders said he expected Belgium to send the trade documents to the EU ambassadors in the early morning.

Paul Magnette, the head of the Walloon government, said, “We regret it but it will be impossible to hold the summit tomorrow.”

Oliver Paasch, head of the German-speaking community, said, “I am certain it will not be possible to sign the treaty tomorrow” even if it is still possible to reach a Belgian consensus that could be sent to the other EU member states.

In the last few days, a range of intensive talks involving Belgian leaders as well as EU officials have been held in a bid to break the deadlock.

Donald Tusk, the European Council president who would host the summit, told the European Parliament in the French city of Strasbourg that he hoped the agreement would be finalised soon.

Tusk and Trudeau still hope to sign CETA trade deal after Belgian 'Non'

Belgium declared yesterday (24 October) that it could not formally back a free trade deal between the European Union and Canada because of an internal dispute, but the two sides still appeared to be holding out hopes of a summit to sign off on the deal.

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He also warned that the EU’s international reputation would suffer if the deal falls through with Canada, “the most European country outside Europe and a close friend and ally”.

Hinging on its success are other trade negotiations, including even more controversial ones with the United States.

The CETA pact would link the EU’s single market of 500 million people with the 10th largest global economy in what would be the most ambitious tie-up of its kind so far.

Belgians keep EU, Canada in suspense on CETA trade deal

Feuding Belgian politicians, keeping Canada and the European Union waiting, resume talks on Wednesday (26 October) with hopes fading that they will unblock the CETA free trade deal in time for a planned signing summit.

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Leaders of Wallonia, a 3.5 million-strong region south of Brussels, want guarantees that CETA will not harm local farming and other interests.

Critics especially oppose terms of the deal intended to protect international investors which they say could allow them to force governments to change laws against the wishes of the people.