Problem with trade with Canada: Cyprus annoys Brussels with Halloumi question

The new European-Canadian economic and trade agreement (Ceta) is already largely in force, but Cyprus is now opposing a group of goods that particularly affects the island: Halloumi cheese.

Cyprus stands in the way of the EU's large free trade agreement with Canada – the island wants to renegotiate parts of the treaty that it feels are being overlooked. The EU member's parliament refused to ratify it on Friday evening. According to the left-wing AKEL party and the socialists, Cypriot Halloumi cheese and other agricultural products on the island are not adequately protected, the state broadcaster (RIK) reported. The Ceta trade agreement provisionally entered into force in September 2017, according to the EU, most of the agreement will therefore apply. Another EU free trade agreement has since entered into force. In the coming years, almost all customs duties on trade with Vietnam are to be abolished.

The national – and in some cases also the regional – parliaments in the EU countries still have to agree with Ceta so that it becomes fully valid. Halloumi cheese is one of the national dishes of Cyprus and is exported in large quantities. The left-wing parties also criticized the agreement because, in their view, it strengthened multinational companies and led smaller producers to the disaster, the state broadcaster further reported. Government officials said Nicosia would try to negotiate some exemptions for Cypriot products before the agreement is again submitted to the House of Representatives for approval.

So far, no such problem with Vietnam agreements

Such resistance has not yet been hinted at in the free trade agreement with Vietnam. Initially, tariffs on EU export goods such as pharmaceuticals, chemicals or machines are to be eliminated. Over the next ten years, there will be easing of trade restrictions for many other goods. In the end, 99 percent of the EU's exchange with the Southeast Asian country is said to be duty-free.

EU Commission President Ursula von der Leyen said she hoped this would create jobs and "new emerging markets" for European companies. The agreement also offers a great opportunity for the people of Vietnam. "The agreement (…) holds considerable economic potential that will help build up after the Corona crisis," said Trade Commissioner Phil Hogan.

Vietnam is an important country for the production of electrical appliances and textiles for the European market. Coffee, rice, seafood and furniture are also often sold to Europe. Conversely, the country with its 95 million inhabitants is an interesting market for European companies. They mainly sell machines, aircraft, vehicles and pharmaceuticals.