France has dealt a crushing blow to the European Union’s flagship trade deal with Canada by rejecting its ratification after criticism by farmers that it brings in unfair competition from overseas.
The EU-Canada Comprehensive Economic and Trade Agreement, or CETA, provisionally went into effect in September 2017 after all EU governments agreed to it – but its full implementation still requires approval by both French legislatures.
Yesterday’s 211-44 vote in the Senate does not necessarily mean that France ultimately will reject the treaty completely.
The vote sends the bill back to the powerful National Assembly, which had approved it in 2019 and can still move to override the Senate rejection and give final approval to the measure.
Nevertheless, French President Emmanuel Macron’s centrist alliance, which has pushed for CETA’s adoption, lost its majority at the lower house in 2022, meaning the outcome of any new vote is hanging in the balance.
Should the Assembly ultimately reject the legislation, that would signal France’s failure to ratify and could unravel the EU trade deal.
In the Senate, opposition from both the conservative majority and leftist legislators centred on concerns about protecting local farmers from what they consider unfair competition, as well as France’s food sovereignty. No date has been set so far for the Assembly to consider the legislation.
Across the bloc, the ratification process has been slow, with France and nine other EU countries, including Italy and Belgium, not yet giving their approval.
As of 2020, the value of trade between the EU and Canada stood at just over £42billion.
There have been significant increases in trade volume between the EU and Canada since the trade deal provisionally went into effect. From 2017 to 2023, trade between the two jumped by 51 percent, with French exports to Canada rising by 33 percent.
Figures published by the EU two years ago suggested CETA saved £463million in duties in 2022.
Despite these economic gains, CETA has faced criticism, including over its impact on European farmers and the environment. Critics claim it risks undermining local agriculture and increasing greenhouse gas emissions due to more transport of goods.
CETA aims to eventually eliminate almost 99 percent of tariffs.
It includes special recognition for certain European products like Agen prunes and Savoie reblochon.
The Senate’s rejection pressures the National Assembly, which only narrowly passed CETA in 2019.
If France or any other EU member state definitively rejects the treaty, it could fall apart, affecting the parts of the agreement already in operation.
French senators’ vote comes after farmers across France and Europe demonstrated on their tractors earlier this year in protests over low earnings, heavy regulation and what they call unfair competition from abroad, often criticising free-trade agreements, including the CETA.
