The free trade agreement between Canada and the European Union is in danger. The French Senate is very reluctant to vote for its ratification, even if the French National Assembly has done so. To the point where some actors are sounding the alarm.
If France does not ratify this treaty could bring it down. With serious consequences both in Europe and in Canada.
For 7 years, the free trade treaty between Canada and the European Union has been applied provisionally, even though it has so far only been ratified by Canada and 17 European states.
The treaty was beneficial for both Europe and Canada.
This is because the level of development of Canada and that of European countries are similar. The signatory countries are democracies. European and Canadian laws are comparable and the legal systems of both entities are based on the rule of law.
AFP
Lots of benefits
David Ricardo’s theory, which justifies free trade negotiations, is very open to criticism when unemployment is high or when the signatory countries are unevenly developed. This is because free trade agreements free up a lot of labor and specialize economies in certain sectors of production.
However, the free trade agreement between Canada and Europe relieves the labor shortage. It reinforces specialization on both sides in highly industrialized sectors, and not only in sectors that are not very promising.
The treaty, which for 7 years has been applied almost entirely in all areas except investment and dispute settlement, has not caused any of the economic cataclysms that some feared. On the contrary, it was rather beneficial to each game.
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Agricultural problem
Unfortunately, French policy is trapped in a very unfavorable agricultural situation. The agricultural industry is at the mercy, among other things, of climate change and overly restrictive regulations imposed by idealistic European elected officials.
With the arrival of the European elections, some French senators are shouting haro on the donkey.
Rather than focusing on serious geopolitical issues that call for increased cooperation among democracies to confront the emerging axis of dictatorial countries, they are stirring up false fears to achieve political gains.
For example, the entry of Canadian hormone-treated beef into European markets has been hyped, even though European regulations prohibit it, to the point that only 1% of Canadian beef quotas on the European market have been used.
Should we be surprised? Senators close to Russia, that is to say those of communist allegiance or those close to Marine Le Pen, are those who are most opposed to the free trade agreement with Canada. Some centrist senators would like a more in-depth examination of the benefits of the treaty before signing it, understand here, dragging out the signing until the day after the elections.
There will perhaps be enough of them to bring down the treaty with France. The vote is expected to take place on Thursday.