The European Commission has formally proposed to the Council of the EU the signature and conclusion of a free trade agreement with Canada.
The deal risked being held up pending clarification from the European Court of Justice on the competence for trade deals which arose over an EU-Singapore agreement.
EU Trade Commissioner Cecilia Malmström explained: “The open issue of competence for such trade agreements will be for the European Court of Justice to clarify in the near future. From a strict legal standpoint, the Commission considers this agreement to fall under exclusive EU competence. However, the political situation in the Council is clear, and we understand the need for proposing it as a ‘mixed’ agreement, in order to allow for a speedy signature.”
This effectively means that the deal could be signed during the next EU-Canada Summit, in October.
CETA will scrap almost all customs duties benefitting European consumers directly by reducing prices and increasing the choice of products imported from Canada.
Enable EU companies to bid for Canadian public contracts
It will make it easier for service suppliers to travel between the EU and Canada and will also facilitate the recognition of professional qualifications for regulated professions. It will also enable EU companies to bid for Canadian public contracts at all levels of government.
Costs for EU firms will be reduced through the mutual recognition of so-called “conformity assessment certificates” for a wide range of products, from electrical goods to toys.
Over 140 European geographical indications of food and drink products will enjoy a high level of protection in the Canadian market, ensuring that only genuine products can be sold under those names.
In addition, CETA introduced a new investment court system and enhanced rules on investment protection. The new system makes the resolution of investment disputes fairer and more transparent, the Commission said.
Moreover, President Jean-Claude Juncker said: “The trade agreement between the EU and Canada is our most progressive and I want it to enter into force as soon as possible. It provides new opportunities for European companies, while promoting our high standards for the benefit of our citizens. I have looked at the legal arguments and I have listened to Heads of State or Government. Now it is time to deliver.”