By Keith Nuthall, Kitty So, Poorna Rodrigo
The Canadian government has welcomed a European Commission
(EC) ruling that should see the European Union (EU)
Comprehensive Economic and Trade Agreement (CETA) finally on
its way to ratification.
After months of legal arguments, Brussels has agreed that
CETA is a mixed agreement, including trade and non-trade
regulatory aspects; meaning that for it to come into force
permanently, all 28 EU member state parliaments will need to
ratify its terms, as well as the European Parliament and the EU
Council of Ministers.
However, the EC has argued that with the two EU legislative
bodies’ approval and the approval of the Canadian
parliament, the agreement could be applied provisionally, which
could now happen in early 2017.
The deal, which was negotiated in 2014, will scrap duties
for good on industrial minerals traded between the EU and
Canada as well as mining machinery, while removing trade red
tape hindering commerce.
This could aid, for instance, Canadian shipments of potash,
a key export – the country produced 11.35m tonnes in
2015, generating Canadian dollar (C$) 6.6bn ($5bn*) in
receipts. It also produced 1.63m tonnes gypsum, earning
producers C$21.1m ($16.2m); 2.09m tonnes quartz, worth C$98.9m
($76m); 14.72m tonnes salt worth C$803m ($617.5m); and 5.21m
tonnes elemental sulphur, worth C$390m ($300m).
Danica Vaillancourt, a spokesperson for Natural Resources
Canada, a federal government ministry, told IM
that the Canadian government looked forward to signing the deal
in October and for it to be ratified early next year,
predicting that "the vast majority of CETA will be
provisionally applied once the Council of the EU and the
European Parliament approve the agreement."
This would cover tariff and quota abolition, services
commitments, intellectual property rights and government
procurement obligations.
"While Canada’s industrial minerals industry
is, in general, regionally oriented, with mined minerals
consumed domestically, CETA does means more growth," she
predicted.
Jessica Draker, communications director for the Mining
Association of Canada, also welcomed the move. She said:
"Access to important markets is a key component of the Canadian
mining industry’s competitiveness. CETA is one
example of a trade deal that would benefit our industry through
the elimination of tariffs on mineral and metal products, and
enhanced regulatory cooperation and labour mobility
provisions."
One reason legal arguments have held up ratification is that
some EU member states are uneasy about investor protections
written into the agreement, which could see companies
compensated for government decisions that damage their
interests. German campaigners have in particular objected to
these provisions, demanding that national parliaments have
their say.
The EC is backing this element of the deal however, noting
in a statement that "CETA introduces a new investment court
system and enhanced rules on investment protection [that]
guarantees the right of EU governments to regulate in the
interest of their citizens, while still encouraging foreign
investors by protecting their investments". It argued that the
new system also "makes the resolution of investment disputes
fairer and more transparent".
The UK government has said that it will ratify the deal,
regardless of the 23 June Brexit referendum vote, although it
would not automatically apply to Britain should it quit the
EU.
*Conversions made July 2016