President of European parliament makes last-ditch bid to save talks as Chrystia Freeland announces ‘failure’ of Ceta over Wallonia objections

This article is more than 3 years old

This article is more than 3 years old

A landmark trade deal between the European Union and Canada is in meltdown, after Canada’s trade minister walked out of talks with the Belgian regional parliament that has been blocking the deal.

The Canadian trade minister, Chrystia Freeland, was on the verge of tears on Friday as she announced the “end and the failure” of talks with the Walloon government.

However the head of the European parliament said late on Friday he would hold emergency talks in a bid to save the deal.

Leaving the Élysette, the home of the Walloon government in Namur, Freeland said: “It seems obvious that the EU is now not capable of having an international agreement, even with a country that shares European values such as Canada, even with a country that is so kind and patient.

“Canada is disappointed. I am personally very disappointed. I have worked very very hard. We have decided to go home. I am truly very, very sad.”



Facebook Twitter Pinterest A placard reads ‘Stop Ceta’ outside the Walloon parliament in Namur, Belgium. The banner appears to have had its wish granted. Photograph: Bruno Fahy/AFP/Getty Images

The comprehensive economic and trade agreement (Ceta), which would eliminate tariffs on most goods between the EU and Canada, has been seven years in the making. But it has stumbled near the finish line as the Belgian region of Wallonia, with a population of 3.5 million, blocked Belgium’s government from signing the deal. The EU, a single market of 510 million people, requires unanimity on trade deals.

Martin Schulz, the president of the European parliament, said he would meet Freeland early on Saturday and Walloon premier Paul Magnette after that to revive the talks. “We can’t stop at last mile,” he said on Twitter.

A spokesman for Freeland said he could not confirm the meeting would take place but said Freeland was still in Brussels as of Friday night.

Cecilia Malmström, the EU trade commissioner, insisted it was not the end of the road for Ceta. “Good progress has been made in most areas of concerns for Wallonia in talks on Ceta. I sincerely believe this is not the end of the process,” she wrote on Twitter. The commission had “engaged wholeheartedly” with Wallonia over the last days and it was “truly sad talks have been halted”, she said.

Wallonia continues to have concerns about the threat of surging pork and beef imports from Canada and an independent court system to settle disputes between states and foreign investors, which critics say may be used by multinationals to dictate public policy.

Many EU leaders also suspect the local government in Namur of using its devolved powers to play domestic politics.

The collapse of talks in Namur will be a heavy blow to EU leaders, who have warned that Europe’s credibility is on the line. Canada’s prime minister, Justin Trudeau, was due to fly to Brussels on 27 October to sign the agreement.

Some see the disintegrating Ceta deal as a bad omen for the UK, which wants to negotiate a post-Brexit free trade agreement with the EU.

“If we can’t make it with Canada, I don’t think we can make it with the UK,” the EU trade commissioner, Cecilia Malmström, quipped this week.

Canada's trade deal with EU a model for Brexit? Not quite, insiders say Read more

British officials have played down similarities, arguing that putting up trade barriers will be a very different exercise to taking them down.

The German chancellor, Angela Merkel, also dismissed talk of a parallel. “The issues that we have been discussing now in relation to Ceta is not something that brought to mind the discussions with Great Britain,” she told reporters after an EU summit in Brussels.

As recently as Thursday, EU officials hoped to get Wallonia on board, but the outlook had darkened by Friday morning, when the Belgian prime minister, Charles Michel, denounced the “radicalisation of positions” from Walloon negotiators.

Belgium, a founding member of the EU that prides itself on its ability to find compromises, is likely to experience heightened tensions between its Flemish and Francophone regions.

The scramble to rescue Ceta overshadowed a Brussels summit, where EU leaders failed to agree on reforming Europe’s trade defences against a glut of cheap Chinese steel.

Reuters contributed to this report.