BRUSSELS, Belgium (Reuters) — The European Union-Canada free trade deal has hit another snag.
A committee of the European Parliament concluded earlier this month that the Comprehensive Economic and Trade Agreement will destroy jobs in Europe and should be rejected.
The two sides signed the deal in October but only after hesitation in Austria and other countries and opposition from a region of Belgium.
CETA needs backing from the European Parliament, and that vote is expected in February.
Parliament’s employment committee voted 27-24 Dec. 8 for a motion saying parliamentarians should not approve the deal because studies showed it could lead to 204,000 EU job losses.
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Parliament’s trade committee is the lead body responsible for CETA, but before it holds a vote in January, other committees are allowed to offer their opinions. The environment and foreign affairs committees are also expected to give a view, with the latter expected to be in favour.
CETA has struggled to secure approval in Europe two years after the agreement was reached.
Even after the European Parliament vote, CETA would take effect only provisionally, most likely in the form of import tariff removal because it needs approval from the EU’s 28 member states and Belgium’s regions.
Supporters say CETA will in-crease Canadian-EU trade by 20 percent and boost the EU economy by $18 billion a year and Canada’s by $12 billion.
The main focus of protests against CETA is the system to protect foreign companies’ investments against state intervention. Critics say its arbitration panels to rule on disputes allow multinational companies to dictate public policy, such as on environmental standards.
