PSometimes it’s better to strike while the iron is hot. By delaying the approval of CETA, the global economic and trade agreement concluded between the European Union (EU) and Canada, the government unwittingly jeopardized its ratification by the Senate.
Implemented provisionally since 2017, adopted by the National Assembly in 2019, the text had still not been submitted for approval to the Upper House, due to lack of inclusion on its agenda by the government. The communist group in the Senate has decided, as part of its parliamentary niche, to allow elected officials to finally decide on CETA, during a vote on Thursday March 21.
If the approach is unexpected, it owes nothing to chance: coming out of the agricultural crisis which shook Europe, free trade is more than ever a flammable political subject. While a convenient alliance between a part of the left and a majority of Republicans is taking shape in the Senate, the choice of this timetable aims to weaken a text which, overall, is favorable to the French economy.
Agricultural anger has particularly thrived on the denunciation of the free trade agreement with the Mercosur countries (Argentina, Brazil, Paraguay and Uruguay). The adoption of this treaty was rightly postponed indefinitely, notably under pressure from France. The environmental and social ambitions did not meet European standards and threatened to lead to unfair competition for our farmers. By putting CETA on the agenda in the Senate, the communists want to take advantage of this dynamic of contesting free trade to oppose this agreement.
First favorable assessment
However, CETA should not be put on the same level as Mercosur. The two texts do not have much in common. The negotiated clauses, the structure of exchanges, the level of development of the commercial partners are very different. Above all, the provisional implementation of the agreement with Canada allows us to draw up an initial assessment, which leans very favorably towards the European side.
In six years, exports to Canada have increased by a third, and the surplus in the agricultural and agri-food sectors has been multiplied by three. Many sectors (steel, textiles and services) were big winners. As for fears about livestock farming, they did not materialize: the share of Canadian meat imports in European consumption remained epsilonesque. By imposing European health standards to be able to export to the EU, CETA notably blocked the entry of Canadian beef produced with growth hormones. At the same time, customs taxes have been lifted on dozens of European geographical indications, which remain protected from counterfeiting.
Beyond the contribution to the balance of our foreign trade, CETA has made it possible to secure certain value chains for critical metals essential to the energy transition and to diversify our hydrocarbon supplies, while we no longer have access to gas. and Russian oil.
The era of happy globalization and unbridled free trade is well and truly over. But it is necessary to show a minimum of discernment and avoid falling into demagoguery. In a fragmented world, where the number of acceptable trading partners is shrinking, it would be damaging both economically and geopolitically to give up trading on a balanced basis with countries that share our interests.