Canada, EU leaders sign CETA pact despite German concerns

The Comprehensive Economic and Trade Agreement (CETA) trade agreement between Canada and the European Union (EU) has been signed, with the backing of all 28 European Union countries.

European Commission President Jose Manuel Barroso and European Council President Herman Van Rompuy gave those assurances alongside Prime Minister Stephen Harper at a press conference in Ottawa on Sept. 26 to announce the closing of the negotiations.

German opposition to the Comprehensive Economic and Trade Agreement (CETA) had resurfaced on Sept. 25, over concerns it could not support the clause that allows private companies to sue governments, but Barroso said at the press conference that opposition has since been quelled and all the official communications they’ve received from Germany “were absolutely in favour of this agreement.”

The CETA pact, approved in principle last October, will overtake the North American Free Trade Agreement — which came into effect in 1994 — as Canada’s biggest cross-border deal.

CETA is set to begin in 2016. When fully implemented, the agreement is expected to increase two-way trade in goods and services between Canada and the EU by 23 per cent, or $36.8-billion.