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Last-ditch talks broke down today with the Federation of Wallonia-Brussels, a parliament for Belgium’s French-speakers, voted to reject the Comprehensive Economic and Trade Agreement (CETA) and repeatedly refused to support the deal. While all 28 member states supported the deal, Belgium could not give its official approval without the backing of its five sub-federal administrations, including Wallonia. They rejected the deal with Canada over concerns about public services and agriculture, and emergency talks this afternoon could not sway their decision.

GETTY A proposed EU-Canada trade deal has broken down after regional opposition

Canadian trade minister Chrystia Freeland walked out of the talks, which have been going on for seven years, after they broke down. Wallonia, which has to ratify the trade treaty if it is to be adopted by the EU, feared it would allow huge multinationals to crush small Walloon enterprises and the country's way of life. Approximately 3,240,000 Walloons live in Belgium which has three official languages: Dutch, French, and German. A number of non-official, minority languages and dialects are spoken as well.

The breakdown is an embarrassing failure for the EU, who are now scratching their heads over how their much-heralded trade deal was shut down by a regional federation. As she left the talks in Brussels, Canada's Trade Minister Chrystia Freeland said: "It seems evident for me and for Canada that the European Union is not now capable of having an international accord even with a country that has values as European as Canada." She added: "Canada is disappointed, but I think it is impossible." Christoph Leitl of the business alliance Global Chamber Platform said: “It’s crazy. If we allow a regional parliament to block a trade deal that will benefit the whole EU, where does this lead us to?”

GETTY Canadian trade minister Chrystia Freeland walked out of the seven-year talks

GETTY A tiny region of Belgium has managed to block a lucrative deal with Canada

Canada is disappointed, but I think it is impossible Canada's Trade Minister Chrystia Freeland

Canadian Prime Minister Justin Trudeau also said: “If Europe cannot manage to sign this agreement, then that sends a very clear message not just to Europeans but to the whole world that Europe is choosing a path that is not productive, either for its citizens or for the world, and that would be a shame.” Wallonia's Minister-President said the region could shutdown future EU votes. Paul Magnette said: "I said this already and I say it again to our Canadian friends - we are sorry that your treaty is the first one to go under such attention.

GETTY Jean-Claude Juncker has been left humiliated by the regional opposition

"But if we pay so much attention here on this treaty, it is because we are going to create a precedent." The rejection will also set alarm bells ringing in the UK. Theresa May and her Brexit ministers had been preparing their own EU trade deal under the expectation of simple negotiations with the Union. Mrs May said it was "important" that the bloc secures the deal with Canada.

GETTY Theresa May said Britain would not use the EU-Canada model when agreeing post-Brexit trade deals

This breakdown shows how fragile an operation setting up a new trade deal will be - especially EU states aiming to make an example of the break-away nation over the next few years. The Prime Minister sought to reassure the public that she would still push for the best trade deals for Britain and would not form deals based on the EU-Canada model.

EU summit 2016: EU leaders meet Fri, October 21, 2016 EU Leaders meet to discuss migration, trade and Russia, including its role in Syria, it will be also the first summit attended by new British Prime Minister Theresa May. Play slideshow AFP/Getty Images 1 of 29 Italy's Prime minister Matteo Renzi (L) speaks with Luxembourg's Prime minister Xavier Bettel during the second day of an European Union leaders summit