EU Commission: CETA to Face Votes in National Parliaments

Nations Assert themselves, Follow Brexit

The European Commission proposed that a planned trade deal with Canada be signed and provisionally applied, while also announcing that it would be submitting the pact for approval from all EU national parliaments, as well as the European Parliament and Council.

Provisional implementation

The news marked a change in stance by the EU’s executive arm, which previously said that the deal would not need to go to national parliaments, citing the Treaty of Lisbon.

Specifically, if a deal’s provisions fall exclusively under EU competences, it would only need to go to the Council and the European Parliament.

However, if it features provisions that address areas falling under the responsibility of EU member states, this qualifies the agreement as “mixed” – therefore meaning that individual member states would need to ratify the accord in their own legislatures as well. Examples where this could occur would be investment, or some regulatory matters.

Given that the issue of “mixity” has arisen repeatedly in EU trade policy process, Commission officials flagged a pending ruling by the European Court of Justice (ECJ) on whether a separate deal with Singapore also requires national parliament approval as having the potential to give much-needed legal clarity.

While the ruling will be specific to the deal with Singapore, officials say that it could help clear up long-standing differences between the Council and the Commission on how to interpret the provisions of the Lisbon Treaty which relate to trade deals. The EU’s executive arm requested the ruling in October 2014.

Meanwhile, the Commission has suggested that the pact could be applied “provisionally” until the full ratification process is completed.

The news of the Commission’s decision comes at a trying time for the EU’s trade policy, as it works to clinch another deal with the United States this year, while also navigating the potential implications for its trade agenda from the UK’s vote to leave the EU.

Meanwhile, the heated public debate over the merits of trade deals – including CETA – has already spilled over into discussions in some EU national legislatures.

For example, the Belgian regional parliament of Wallonia has said it would need to see guarantees on certain issues before approving CETA, while Bulgaria and Romania have raised separate concerns regarding visa-free travel with Canada that could make it difficult to give their sign-off to the

The process of negotiating the EU-Canada pact already dates back several years, kicking off in 2009. The pact has attracted significant public scrutiny since the talks began, and even after negotiations were concluded in 2014.

Following the legal scrub of the pact, the two sides announced earlier this year that they had revised the investment protection parts of the deal to incorporate an EU proposal for an investment court system, while stressing the “right to regulate” in the public interest by domestic governments.

Officials said at the time that the changes were designed to answer concerns by citizens and businesses on both sides of the Atlantic. However, the debate failed to die down, with concerns continuing to arise over how effective these reforms would be, among other aspects of the deal.

Meanwhile, speculation had grown in recent weeks as to how the Commission would propose treating the deal in the ratification stage, particularly in light of earlier statements by both the EU and Canada that they hoped to see the deal signed this year and implemented in 2017.