It was Expected that European Union and Canada would ratify their Comprehensive Economic and Trade Agreement (CETA), which has been under negotiation over the last 7 years. However, the agreement has been put on hold this year.
At this point, instead of approving the complete deal negotiated with Canada, Ms. Cecilia Malmström, EU Trade Commissioner, made public her intention of submitting it for the approval of more than thirty regional parliaments within the bloc, which will definitely delay even more the CETA ratification.
The delay in approving such agreement shocked some think tanks who advocated that EU-Canada agreement would had been easier and faster to negotiate, since all the parties involved are developed economies that generally tend to agree on most sensitive issues, such as labor markets and environmental issues.
Many Canadian and European producers claim that they were looking forward the CETA, since not only would revoke more than nine thousand tariffs, but also it would promise to attract investments to the service sector.
Although currently the European Union is facing a popular reaction against trade agreements, Canada continues to demonstrate a pro trade position, looking forward to benefiting from more liberalized markets. Canada has shown its willingness in opening the market through the establishment of trade agreements with Korea, Honduras, among others, and by involving the country in trade explanatory negotiations with European Union and the United States. It seems like a good opportunity for Brazil and Mercosur to take advantage of Canada’s trade position and resume the Free Trade Agreement (FTA) which is momentarily frozen. The adoption of this agreement would bring great business potential and new investments opportunities for the Mercosur region.