What did the Secretary of State for Exiting the European Union, David Davis, mean when he stated that Britain required a CETA-Plus-Plus...Plus agreement with the EU?
Since the beginning of CETA's ratification this past Autumn, many in the News, on Twitter and at social gatherings have been praising the agreement and a number of Brexiters are using it as proof that there is nothing to be nervous about: If Canada can reach an agreement, the UK will have no problem accomplishing the same feat. That said, CETA itself is a hefty 1598 page document, the culmination of over a decade of discussions and negotiations, and will take several years to fully implement if, that is, each EU partner agrees to ratify.
CETA: Negotiation to Ratification
On the 21st of September 2017, the ratification of the Comprehensive Economic and Trade Agreement (CETA) between Canada & the EU, by EU member countries began. Hailed as the 'the most far reaching agreement the EU has ever concluded', this agreement is the culmination of seven years of negotiation and is one of the biggest bilateral agreements Canada has engaged in. The finalisation of this agreement will mean 98% of tariffs between Canada and the EU will be eliminated over a transition period of 5 to 7 years, though it must be noted that it does not completely remove quotas. Furthermore, it also includes 'Temporary Entry for Professionals', which benefits intra-corporate transfers, contractual service providers, and new working profiles.
However this agreement has not been without opposition. While the EU states in its 'Guide to the Comprehensive Economic and Trade Agreement (CETA)' that Canada will have to meet EU food regulation standards, critics have highlighted that mutual recognition of regulatory standards is mentioned but that it will be the two sides who will establish a framework for future discourse. Critics believe that this will lead to 'dilut[ed] environmental standards and labour laws' with new courts siding with business over government.
CETA-Plus-Plus...Plus: A Reason to Hope?
Canada's trade deal with the EU covers the trade of goods, but does not include services. This is one of the gaps that Bexit Secretary David Davis is referring to. A new trade deal between Britain and the rest of the EU states would require a whole other set of negotiations to iron out the agreement and the British Government is keen to demonstrate that time is of the essence and that they will have a deal in place by March 29th, 2019. Last month Theresa May informed her MPs that the UK wouldn't pay the agreed £39B financial restitution to the EU unless the whole agreement was finalised, which includes a trade deal. What is in the UK's favour is that it currently has the same regulations as the EU and therefore isn't as much of a hindrance when it comes to negotiating an agreement. However one of the main arguments for leaving during the referendum was to remove the EU from dictating UK law, which then begs the question: Would the UK commit to accept EU standards going forward in order to ensure a quicker deal?
CETA: A Short-Cut or a Loss Leader?
Both the UK and EU recognise the importance of a trade agreement, however how long it will take, if any EU regions will act as blockers (for example, Wallonia), and whether the UK is willing to accept something less than adequate, will have yet to be seen. While it is an accomplishment, at best CETA is mild starting point: removing 98% of tariffs is a great feat, however with the quotas involved and exclusion of services it is definitely lacking where the UK's specific interests are concerned. Swiftness in a negotiation comes down to how much one has in common with the other and what you can live without. For sure, the UK can use Canada's experience as a starting point, but whether it makes the process faster and meets their objectives is definitely debatable.