February 15th, 2017 - by Amy Verdun, University of Victoria
Today the European Parliament approved the Comprehensive Economic and Trade Agreement (CETA). There were 695 Members of the European Parliament (MEPs) present of which 408 voted in favour, 254 against and 33 did not vote. It brings the completion of the ratification process another step closer. The agreement enables the Europeans and Canadians to trade more freely with one another as well as other forms of deeper economic cooperation. The ratification of the CETA by the European Parliament was not always a given. Some members of the European Parliament worry about the dispute settlement system that has been created together with this agreement. A new tribunal ‘the Investment Court System’ that has been put in place to deal with investor-state disputes. Critics worry that only investors will benefit from this court but that groups of consumers, environmentalists or workers cannot bring cases to it. These concerns were leading numerous voices in Europe and Canada to be sceptical about the astuteness of ratifying CETA.
It seems that with a change in global stance towards free trade, following the election of Donald Trump and the subsequent trials and tribulations of the first few weeks of the Trump Administration may have put the partnership of the EU and Canadian in a more favourable light. In the past, some MEPs were concerned about whether CETA would be a template for the Transatlantic Trade and Investment Partnership (TTIP – the EU-US trade agreement). The first thing Trump has done, however, upon becoming the 45th president of the US, is to scrap the TTIP. Thus, those who would be worried about large US, litigious enterprises, would not need to be concerned about how CETA might pave the way for TTIP (at least not in the short-run). Furthermore, if the CETA agreement fails, it would make it more difficult for the EU to sign trade agreements with other countries.