After five years of drawn-out negotiations, Canada and the European Union have finally put pen to paper, creating one of the world’s largest free-trade blocs, while at the same time downplaying concerns over a possible negotiating rift with Germany.
Prime Minister Stephen Harper played host to EU leaders on Friday, under the banner of their regular summits, but clearly planned to highlight the signing of the Comprehensive Economic and Trade Agreement (CETA) and the long-awaited public release of the massive document.
The CETA pact, approved in principle last October, will overtake the North American Free Trade Agreement — which came into effect in 1994 — as Canada’s biggest cross-border deal.
CETA is set to begin in 2016. When fully implemented, the agreement is expected to increase two-way trade in goods and services between Canada and the 28-nation EU by 23%, or $36.8 billion, or 26 billion euros.
Under NAFTA, 29% of the then-existing tariffs were removed on the first day of the deal. With CETA, that initial figure will be closer to 98%.
