This article is an update on negotiation of the free trade agreement between Canada and the European Union as of June 29th 2015

1. Comprehensive Economic and Trade Agreement between the European Union and
Canada (CETA)
By Ronald Bannon MBA, C.Adm., FCMC
June 29th
2015
(Free translation by the author authorized by the Editor of Le Monde Économique available on
the web at www.monde-economique.ch)
In this new series of articles on management and international trade, I will address various
topics related to management and foreign trade based on my vision as a private expert working
from Canada as a Certified Management Consultant (CMC). As my first subject, I have chosen
to address the thorny issue of CETA signed between the European Union and Canada. This
treaty was signed October 18, 2013 by the President of the European Union, José Manuel
Barroso, and the Prime Minister of Canada, Mr. Stephen Harper. This agreement, however,
must be ratified by the twenty-eight (28) EU member. This is a historic achievement for Canada
and for the EU as it will bring down all tariff barriers and allow the free flow of goods, people and
capital, which will circulate freely between the two political entities and geographical.
For Canada, the EU is an even bigger market than the United States because the total
population will exceed five hundred (500) million compared to three hundred and thirty (330)
million for the US. Clearly, this opening would allow Canadian companies to boost foreign trade
with the EU without constraints and expecting benefits that will have a huge impact on the
overall Canadian economy. For the Prime Minister of Canada, Mr. Harper, he is currently
playing his political career in the endless waiting for ratification. For the EU, Canada is a small
country with less than thirty-five (35 million) people, but for EU enterprises, it represents a
stepping stone to the lucrative United States market.
The final text of the agreement includes provisions on the recognition of the State's rights on
investors and on the adoption of a regulation in the public interest that satisfy the EU
Commissioner allowing the Canadian Minister of International Trade to believe that the
negotiations have ended since no changes were required by the representatives of Europeans.
Despite this recent statement, irritants persist and hinder the final ratification of the agreement
that is now makes the envy of the United States. The American giant has also begun
negotiations for a similar agreement with the EU. But one particular irritant remade continually
surface in the same negotiations with the US is the settlement mechanism and disputes
between investors and the State members called Investor-state dispute settlement or ISDS that
allows a court action by investors if they feel mistreated by any States of the Union. Germany is
not comfortable with this arrangement which sees a threat to its sovereignty. Chancellor Angela
Merkel is currently coaxing by the Prime Minister of Canada, to obtain their support on behalf of
Germany, the latter playing a dominant economic role in the EU with almost forty percent (40%)
of all European exports. On the side of France, the Canadian meat exports should be free of
any trace of antibiotics and growth hormones to meet their standards. Canadian producers have
committed to deliver meats that meet the requirements of France.
By press release, France has also indicated that on 29 June 2015, it will not sign the Treaty if
there are no changes to Article 33 of the Treaty ISDS mechanism, citing Australia, which was

2. been sued by the American tobacco company Philips Morris and Germany, sued by the
Swedish electricity supplier Vattenfall. For France, this clause of the agreement is unacceptable
and created an unbalance in favor of large enterprises to the disadvantage of public interest
(see article in the Journal Le Devoir dated the same day entitled "La France ne signera pas
sans modifications").
On this side of the Atlantic, the Canadian Association of Milk Producers and the Union des
Producteurs Agricoles du Quebec (UPAQ) anticipate a major economic impact on small
producers, especially for those who make cheese on an artisanal basis. They will be threatened
if not eventually force out of business with the large incoming quantities of dairy products from
Europe. A business withdrawal mechanism with financial compensation provided for in the
agreement to allow a balance of forces, given the current production capacity of the players
involved in this transaction.
Warning to readers: please do not be confused with CETA and TAFTA: The TAFTA (Trans-
Atlantic Free Trade Agreement) is the agreement that the EU is currently negotiating with the
United States of America.
For more information on CETA, I invite you to visit the website of the Ministry of Foreign Affairs,
Trade and Development Canada at the following address: http://international.gc.ca/trade-
agreements-accords-commerciaux/agr-acc/ceta-aecg/understanding-comprendre/overview-
apercu.aspx?lang=eng
Next article: The role of the Management Consultant in the context of globalization
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By Ronald Bannon MBA, C.Adm.By Ronald Bannon MBA, C.Adm.By Ronald Bannon MBA, C.Adm.By Ronald Bannon MBA, C.Adm., FCMC, FCMC, FCMC, FCMC
(Ronald.Bannon@asselinbannon.com)
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