Canada-EU trade summit Thursday will likely be postponed: top official

European Parliament President Martin Schulz told German radio on Tuesday that he did not expect a free trade deal between the European Union and Canada to be signed this week.

Belgium said on Monday it could not formally back the Comprehensive Economic and Trade Agreement (CETA) which needs the unanimous support of the 28 EU nations because its French-speaking Wallonia region opposes it.

"I don't think that we'll get a solution this week," Schulz told Germany's Deutschlandfunk radio station. "That would seem to be very, very difficult to me."

He added that it would therefore be necessary to postpone an EU-Canada summit planned for Thursday.

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Whether or not an agreement can be reached this week depends on the federal Belgian government reaching an agreement with Wallonia on Tuesday, Schulz said. He said he was "skeptical" about that but thought they would ultimately find a compromise.

Freeland: CETA isn't dead yet

8 years ago

Duration 0:58

International Trade Minister Chrystia Freeland says that CETA isn't dead yet, but that the ball is now in the Europeans' court.

In a broadcast statement on Monday Schulz said he was optimistic about finding a solution: "There is not only still hope with CETA. We are on the way to finding a compromise and to finding a solution for questions raised by the Wallonians, which are questions raised by a lot of citizens all over Europe."

Walloon not "herald of anti-globalization"

Wallonia premier Paul Magnettesaid Tuesday that hisBelgian region was not opposed to a planned EU-Canadafree trade deal in itself, but that an arbitration scheme neededto be dropped and public services protected.

"Let's be clear, I'm not a herald of anti-globalization, Iwant a deal," Magnette told French daily Liberation in aninterview published on Tuesday.

But he said a court system specifically created to resolvedisputes between investors and governments could be exploited bybig business to dictate public policy.

"I would prefer that this entity disappears pure and simpleand that we rely on our courts," he said. "Or at the very least,if we want an arbitration court, it must provide equivalentguarantees to domestic ones."

Magnette referred to a mechanism known as Investor-statedispute settlement (ISDS), which allows foreign companies tochallenge state interference, such as expropriation.

Typically, the lawsuit is brought before a panel of privatearbitrators, its members appointed by the investor and state indispute. The mechanism has been criticized because of lawsuitsbrought by companies against tighter rules on public health,environmental and labour standards.

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After a steady march toward globalization, trade deals like NAFTA, CETA and TPP are under fire

Magnette said Canada agreed with Wallonia on this issue. "Intruth, it's a debate that is purely internal to the EuropeanUnion," he said.

Magnette said Wallonia was ready to accept a legally binding amendment to CETA that would interpret provisions on arbitration courts, public services and environmental legislation, although it would have preferred a complete re-negotiation.

• Graphic: What's in theCanada-EUtrade deal