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Belgium Walloons block key EU Ceta trade deal with Canada | Belgium Walloons block key EU Ceta trade deal with Canada |
(about 1 hour later) | |
Belgium cannot sign a key EU trade deal with Canada, Prime Minister Charles Michel says, because of regional objections led by staunchly socialist Wallonia. | |
His statement appeared to dash hopes the Ceta deal could be signed by EU leaders and Canada on Thursday. | His statement appeared to dash hopes the Ceta deal could be signed by EU leaders and Canada on Thursday. |
Mr Michel said that talks with French-speaking regions had broken down. | |
This is the EU's most ambitious free trade deal to date but Belgium needs the regions' approval to sign it. | |
Mr Michel said he had told European Council President Donald Tusk that Belgium could not sign the Comprehensive Economic and Trade Agreement (Ceta). | |
The other 27 EU governments want to sign Ceta, which has been in the pipeline for seven years. | |
The European Commission had set Belgium a Monday deadline to make its decision on the deal. | |
Wallonia, a region of 3.6 million people, wants stronger safeguards on labour, environmental and consumer standards. | |
On Monday, it emerged that two other Socialist-led, French-speaking parliaments also opposed Ceta. | |
"The federal government, the German community and Flanders said 'yes.' Wallonia, the Brussels city government and the French community said 'no'," Mr Michel said. | |
The Belgian Socialists' fears echo those of anti-globalisation activists, who say Ceta and deals like it give too much power to multinationals - power even to intimidate governments. | |
There have also been big demonstrations in several EU countries against Ceta and the TTIP trade talks between the EU and the US. | There have also been big demonstrations in several EU countries against Ceta and the TTIP trade talks between the EU and the US. |
On Sunday the European Commission presented a new clarification to Wallonia on the mechanism for settling disputes with investors. | On Sunday the European Commission presented a new clarification to Wallonia on the mechanism for settling disputes with investors. |
The rules for trade arbitration are one of the thorniest issues in the deal. | The rules for trade arbitration are one of the thorniest issues in the deal. |
But Belgium's RTBF news reported (in French) that the latest EU document did not satisfy the Walloon politicians. | But Belgium's RTBF news reported (in French) that the latest EU document did not satisfy the Walloon politicians. |
What is Ceta? | What is Ceta? |
Canada and the EU would eliminate 98% of tariffs under Ceta, which was negotiated over five years between 2009 and 2014. | Canada and the EU would eliminate 98% of tariffs under Ceta, which was negotiated over five years between 2009 and 2014. |
Supporters say this would increase trade between them by 20%, and would especially help small businesses. | Supporters say this would increase trade between them by 20%, and would especially help small businesses. |
Critics say the deal threatens product standards and protects big business, allowing corporations to sue governments. | Critics say the deal threatens product standards and protects big business, allowing corporations to sue governments. |
European Parliament briefing on Ceta | European Parliament briefing on Ceta |
Is Ceta a good model for Brexit? | Is Ceta a good model for Brexit? |
Donald Tusk is now expected to tell Canadian Prime Minister Justin Trudeau that the Ceta signing - long planned to take place on Thursday in Brussels - cannot go ahead. | |
Canadian Trade Minister Chrystia Freeland was bitterly disappointed on Friday when talks with Wallonia broke down and she flew home, during an EU summit in Brussels. | |
On Monday the Walloon Prime Minister, Paul Magnette, warned: "We will never decide anything under an ultimatum or under pressure." | |
His counterpart in Belgium's Dutch-speaking Flanders region, Geert Bourgeois, said the blockage was "a real shame". | |
"We're the laughing stock of the whole world. It's bad for Wallonia, for Flanders, for Belgium, for Europe, for the whole world," said the centre-right leader, quoted by Reuters news agency. | |
Some UK politicians see Ceta as a potential model for a Brexit trade deal with the EU. | |
Ceta does not involve EU-style free movement of labour. But for British services - 80% of the UK economy - the Ceta terms are less favourable than those they have now. |