Free trade agreement between Canada and the EU suspended by French Senate vote

2024-03-21 07:39:49

CETA, the free trade agreement between Europe and Canada, finally arrives before the French Senate to be ratified. The vote is not self-evident, because seven years after being approved by the heads of state and the European Parliament, this agreement remains very controversial among French farmers.

The topic has been reactivated with the recent agricultural crisis. Senators, very sensitive to the rural world, could vote against. This worst-case option would theoretically block theaccord, hence the excitement of the government. France is not the only country that is wary of CETA. Ten other European countries are postponing ratification for fear of being rejected. However, CETA has already been partially implemented since 2017 and the results are rather reassuring. In value, the exchanges between the Canada and Europe have increased by 37% since the application of the agreement, and the balance is still very favorable to Europe. The gains are significant for industry, services and the agri-food sector. Same trend for France with a 30% jump in trade with Canada. A figure to put into perspective, because it is consistent with the overall evolution of French exports.

The agri-food industry, big winner of CETA

A quarter of French exports to Canada are agri-food products. Against all expectations, breeders benefit greatly from it. And contrary to what they feared, Canadian beef did not flood into French butcher shops. The 52 tonnes shipped in 2023 in France represent only 0.0034% of consumption. In fact, Canadians use only 2% of the quota authorized under CETA. French winegrowers are the big winners from this free trade agreement. Their exports to Canada have soared. The same goes for producers of Reblochon or other AOC cheeses — Appellations d’origine contrôlée. A trend that is valid for all of Europe. Exports of parmesan, ricotta and other Italian sweets have surged. This does not prevent populist Giorgia Meloni’s Italy from refusing ratification. In Italy as in France, CETA has become an object of very political tension, too political to be approached calmly a few months before the European elections.

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Still unknowns for environmentalists

Including to examine serious reservations about the future development of trade with Canada. Canadian breeders could wake up and turn away from their American market to export hormone-treated beef to Europe, because local controls are light by European standards. Another uncertainty: the functioning of the arbitration court responsible for settling disputes between companies and States. Will it be a way to circumvent environmental legislation? the European Union, as environmentalists fear? These doubts require a frank discussion with Canadian officials. The subjects could be discussed on April 10 during Gabriel Attal’s visit to Ottawa. The French Prime Minister will be accompanied by Franck Riester, the Minister for Foreign Trade.