A landmark trade deal between the European Union and Canada is expected to go ahead after the Belgian government cleared a major hurdle.

Belgium's Prime Minister Charles Michel said his national government had reached an agreement with the holdout region of Wallonia, whose opposition had held up the deal for weeks.

The free-trade deal, known as CETA (Comprehensive Economic and Trade Agreement), needs unanimity from all 28 EU governments to be signed.

"Belgian agreement on #CETA. All parliaments are now able to approve by tomorrow at midnight. Important step for EU and Canada," Mr Michel tweeted.

EU President Donald Tusk said on Twitter he was "glad for good news."


Belgian agreement on #CETA . All parliaments are now able to approve by tomorrow at midnight. Important step for EU and Canada — Charles Michel (@CharlesMichel) October 27, 2016

Canadian Prime Minister Justin Trudeau had been due to travel to Brussels today to sign the deal, but the plan was scrapped as the negotiations with Wallonia dragged on.

In a cautious welcome, Canada called the announcement a "positive development".

The new text agreed in Belgium will still have to be put to the other EU nations, and no date for a new visit by Mr Trudeau has been set.

Still, the Belgian go-ahead will be a huge relief to EU leaders, as the CETA pact has been seven years in the making and liberalises trade between the EU bloc of 500 million consumers and 35 million Canadians.

Furthermore, the negotiations were seen as a litmus test ahead of Brexit talks.

I am glad for good news from PM @CharlesMichel. Only once all procedures are finalised for EU signing CETA, will I contact PM @JustinTrudeau — Donald Tusk (@eucopresident) October 27, 2016

The pact aims to eliminate 98% of tariffs between the EU and Canada and could increase trade by 20%.

But it has also drawn several protests, with critics saying the agreement took the interest of giant corporations more at heart than those of common people.

Wallonia, a Socialist stronghold, said it wanted more transparency and was opposed to an arbitration system it said gave too much power to multinational companies.

It also feared the deal would put further strain on Belgium's struggling agricultural community.

With its de-facto veto, the region, a small French-speaking area of just 3.6 million people, was accused of hijacking the deal and holding the EU hostage.

Image: President of Wallonia Paul Magnette was the last holdout

For EU leaders, its opposition has been both frustrating and embarrassing.

The new text approved in Belgium provides guarantees for farmers and answered Wallonia's concerns over the corporate settlement, officials said.

"We always fought for treaties that reinforced the social and environmental standards, protect the public services and that there is no private arbitration" in dispute settlements, Wallonia President Paul Magnette said.

"All this is achieved as of now."

He added: "I am sorry for all the other Europeans we made wait and for our Canadian partners.

"But if we took a bit of time, what we achieved here is important, not only for Wallonia but for all Europeans."