Canada and EU Deepen Free Trade and Economic Cooperation
In a significant step toward enhancing global economic integration, Canada and the European Union have agreed to strengthen their free trade ties and economic cooperation. The move builds on the foundation of the Comprehensive Economic and Trade Agreement (CETA), which has been provisionally in effect since 2017. Since its implementation, trade in goods between the two economies has increased by over 50%, underscoring the agreement's positive impact.
The renewed commitment comes at a time of growing global trade tensions and rising protectionism, particularly from the United States. Canadian Trade Minister Mary Ng emphasized the importance of diversifying trade partnerships to ensure stability and growth for Canadian businesses. Key areas of focus include critical minerals, digital trade, and support for small and medium-sized enterprises.
On the European side, leaders are also looking to reinforce economic ties with transpacific partners, including those in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), of which Canada is a member. This strategy aims to fortify a rules-based global trading system amid increasing uncertainty.
Despite the overall success of CETA, not all member states have ratified the agreement. France's Senate recently voted against ratification, reflecting domestic concerns about the impact on local farmers. Nonetheless, both Canada and the EU remain committed to advancing economic cooperation, recognizing the strategic importance of their partnership in a shifting geopolitical landscape.
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