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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 3 hours later) | |
Belgium cannot sign a key EU trade deal with Canada, Prime Minister Charles Michel has said, because of objections led by its Wallonia region. | |
Mr Michel said talks with Wallonia and two other elected bodies had failed. | |
His comments appeared to dash hopes the Ceta deal could be signed on Thursday but European Council President Donald Tusk said it was still possible. | |
This is the EU's most ambitious free trade deal to date but Belgium needs its regions' approval to sign it. | |
Mr Michel said he had told Mr Tusk that Belgium could not sign Ceta (the acronym for the Comprehensive Economic and Trade Agreement). | |
The other 27 EU governments want to sign the agreement, 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. | The European Commission had set Belgium a Monday deadline to make its decision on the deal. |
In a tweet on Monday, Mr Tusk wrote: "Together with (Canadian) PM @JustinTrudeau, we think Thursday's summit still possible. We encourage all parties to find a solution. There's yet time." | |
For the deal to pass, Belgium's federal, regional and community bodies (seven in all) must give their approval. | |
Wallonia, a staunchly socialist region of 3.6 million people, has led objections to the deal, demanding stronger safeguards on labour, environmental and consumer standards. | |
But at talks with Mr Martin on Monday, it emerged that two other bodies, Brussels and that of the French-speaking community, also opposed Ceta. | |
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. |
'A real shame' | |
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. |
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. | 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, Wallonia's regional leader Paul Magnette warned: "We will never decide anything under an ultimatum or under pressure." | On Monday, Wallonia's regional leader 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". | 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," said the centre-right leader, quoted by Reuters news agency. "It's bad for Wallonia, for Flanders, for Belgium, for Europe, for the whole world." | |
Some UK politicians see Ceta as a potential model for a Brexit trade deal with the EU. | 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. | 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. |