Comprehensive Economic And Trade Agreement Research Articles

Paradiplomacy and the European Union’s trade treaty negotiations: the role of Wallonia and Brussels

ABSTRACT Because of their integration in the elaboration of national positions in the European decision-making process, Belgian subnational entities have since the 1990s favoured collaborative paradiplomacy. This has been particularly the case for Wallonia and the Brussels Region since they have a stronger stake in keeping Belgium together. Cooperative paradiplomacy has therefore been their default option, only interrupted by the crisis over the signature of the Comprehensive Economic and Trade Agreement (CETA) treaty, which was refused by these two regions. This article therefore analyses the dynamics of the conflict over the signature of the CETA treaty and the specific contribution of the two regions, Wallonia and Brussels.

The European Commission and the “Europeanisation” of EU trade diplomacy: the case of EU-China relations, 1999–2021

In recent times, the European Commission has shown to have increasing difficulty keeping up its central position in trade diplomacy towards China, in the face of a growing wariness and assertiveness of the member states. In this article, we observe a changing balance, a development from EU diplomacy towards European diplomacy, meaning a growing influence of EU member states in the process. We call this the “Europeanisation” of EU economic diplomacy. This is not limited to China and reflects a broader development, as is visible in the politicisation of the negotiation processes towards the (failed) Transatlantic Trade and Investment Partnership (TTIP) and the (provisionally applied) Comprehensive Economic and Trade Agreement (CETA) between the EU and Canada, and also in the trend towards mixed agreements that require member state ratification. However, it was particularly in the relations with China that such trends became visible for the first time and have continued to manifest themselves throughout the years. Apart from the member states assembled in the Council, also the European Parliament has strengthened its position in the process at the expense of the Commission.

The Legal Nature of New Generation Free Trade Agreements: Lessons from the CETA Saga

The Comprehensive Economic and Trade Agreement (CETA) is a “new generation” bilateral “mixed” free trade agreement signed on 30 October 2016 between Canada and the European Union alongside its Member States. In the European Union, “mixed” trade agreements follow an adoption procedure that determines, in the best-case scenario, a substantial delay to their entry into force, and, in the worst, a veto by Member States that damages the international standing of the European Union. The European Com­mission bowed to Member States’ pressure and decided to qualify CETA as a “mixed agreement” instead of an “EU-only agreement”. That the “guardian of the Treaties” had no constitutional leeway on the choice of CETA’s approval form became clear after the decision of the Court of Justice on the free trade agreement nego­tiated between the European Union and Singapore (Opinion 2/15). CETA’s “mixed” nature determines that its application is limited and provisional, and under a permanent Damocles sword existential threat.

Article 8 - CETA as the EU’s First Third-Generation Trade Agreement: Does It Act Like One?

The Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union (EU) has been hailed as the trend-setter for third-generation trade agreements, which focus predominantly on beyond-the-border impediments to international trade (e.g., rules and regulations) than at-the-border barriers (e.g., tariffs). CETA formed the basis for subsequent EU trade agreements, which are a key element of the EU’s trade policy. It also provided inspiration for third-generation trade agreements outside the EU. The big question for trade policy, in the EU and beyond, is whether third-generation trade agreements achieve their intended objectives with respect to beyond-the-border obstacles to trade. In other words, are they effective instruments in liberalizing international trade? After all, facilitating trade through regulatory and administrative cooperation is much more difficult than eliminating or lowering tariffs on imported goods. Having been in force (provisionally) for five years, CETA offers the best case to study the effectiveness of third-generation trade agreements. 

Embedded Neoliberalism and the Legitimacy of the Post-Lisbon European Union Investment Policy

Much has been written about the ongoing legitimacy crisis of the global investment treaty regime and the system of investor-to-state dispute settlement (ISDS). In the European Union (EU), the proposed inclusion of investment protection provisions and ISDS in negotiations on the Comprehensive Economic and Trade Agreement (CETA) with Canada and the Transatlantic Trade and Investment Partnership (TTIP) with the United States triggered unprecedented levels of contestation. This article seeks to explain why EU responses to such contestation, in the form of an investment court system and a multilateral investment court, did not bring about a clear break away from the traditional ISDS model. Drawing on critical political economy perspectives, it regards the EU investment policy following the entry into force of the Treaty of Lisbon as deeply embedded in a broader neoliberal project mediated by material, institutional, and ideological configurations. Several factors have inhibited possibilities for more fundamental changes. The European Commission construed the lack of legitimacy as stemming from ISDS’ procedural features rather than questioning its social purpose. There has been no shift in the underlying social power balance, and no comprehensive counter-project has been proposed. The European Commission enjoys relative autonomy vis-à-vis other parts within the EU institutional ensembles and wider societal interests, allowing it to block more radical solutions. Finally, there were no clear signs of a fundamental departure from the neoliberal path in terms of wider EU economic regulation.

Ratification of the Comprehensive Economic and Trade Agreement (CETA): Towards A New Structure of Political Conflict?

Abstract Has the high-profile public opposition to recent EU trade agreements supplanted the traditional socio-economic pattern of competition in European trade policy with a value-driven one? This article draws on new data analysing the outcome of the ratification process of a mixed free trade agreement (CETA) in the European Parliament and in all national parliaments that have so far completed ratification. With help of a logistic regression model analysing the vote-outcome, this article demonstrates that despite high social salience, economic considerations remain prominent. Values (TAN-GAL cleavage) were relevant but played a different role than expected. Against the expectation, green parties associated with the GAL-spectrum voted against CETA demonstrating that party preferences on specific values do not necessarily coincide or generate the same policy preference.

UK-Canada Trade Post-Brexit: Leading with Circular Economy Trade

This research explores the viability of and considerations for circular economy international trade, a new international trade concept developed from an established circular economy concept. This work derives insights from literature to initiate a new branch of international trade, augmented by several trade experts’ reviews to ensure the feasibility of the ideas. Academic and practical insights include advice for future trade agreements and suggestions for future international trade research, opening up a new field of circular economy trade. The original 2018 academic research was jointly commissioned by the UK and Canada to consider how to design a trade agreement between the two countries post-Brexit. As of April 1, 2021 and as predicted by our original 2018 work, an agreement, called the Canada-United Kingdom Trade Continuity Agreement (Canada-UK TCA), much like the Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union is in place to support UK-Canada trade. CETA incorporates some principles of sustainable development. Taking sustainable development aims further by explicitly embedding circular economy trade into the UK-Canada agreement would represent progression of international trade agreements and possibly support a worldwide “race to the top”. According to expert opinion, our nations could engage in circular economy trade because our countries are aligned on internal circular economy policy. Moreover, although traditional views on international trade could remain as barriers, even the World Trade Organization subscribes to this new model. Overall, this research opens up paths for future research opportunities in international trade.

Conflicts of sovereignty over EU trade policy: a new constitutional settlement?

This paper investigates whether the politicization of a new generation of trade agreements has led to the transformation of EU trade policy. It provides a qualitative study of multilevel contention based on sources from civil society and the parliamentary archives in Belgium, Germany, and the European Union concerning the EU-Canada Comprehensive Economic and Trade Agreement (CETA) and three subsequent agreements concluded by the EU with Japan, Vietnam, and Singapore. We argue that, far beyond mere institutional disputes, the contention surrounding CETA has epitomized two conflicting visions of sovereignty: on the one hand, a vision where national executives qua states share sovereignty under the auspices of the European Commission, and on the other hand, a claim to reassert popular sovereignty (and the channelling thereof by parliaments) in a multilevel fashion. We demonstrate that the strengthening of the latter vision has been limited as the empowerment of parliaments was not sustained when civil society’s mobilization waned. The EU institutions have successfully curtailed the category of mixed agreements thus limiting the involvement of national and regional parliaments. CETA was a climax in the politicization of trade yet failed to bring about a new constitutional settlement that enhances the popular component of sovereignty in the EU.

Stress Test for EU’s Investment Court System: How Will Investments Be Protected in the Comprehensive Agreement on Investment?

On 30 December 2020, the European Union (EU) and China agreed in principle to a revamped investment treaty: The Comprehensive Agreement on Investment (CAI). Notably, the EU and China have not decided which investment dispute resolution system will be included under the new agreement. Instead, the EU and China are continuing negotiations on this contentious topic. This article discusses the key features of the proposed investment court system in the context of the CAI negotiations to assess whether China could agree on such a paradigmatic change that would have systemic consequences. The article explains the objective reasons behind China’s partial support for the proposed reforms to the existing investor-state arbitration system. For example, China has supported adding an appellate body without accepting the EU’s full-fledged investment court proposal. Finally, the article identifies the points of convergence and divergence which will shape the CAI negotiations and pave the way to global investor-state dispute settlement (ISDS) reform. comprehensive agreement on investment (CAI), investor-state dispute settlement (ISDS), investment court system (ICS), United Nations Commission on International Trade Law (UNCITRAL Working Group III), Comprehensive Economic and Trade Agreement (CETA), EUVietnam Free Trade Agreement (EVFTA), State-to-state dispute resolution, Achmea case, financial responsibility regulation, European Commission

Explaining Sub‐Federal Variation in Trade Agreement Negotiations: The Case of CETA

AbstractSub‐federal units have emerged as increasingly important actors in international trade policy. This is puzzling as they usually have no formal competencies in this area. Using the Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union as a case study, this article examines one key driver behind this development ‐ the provisions in new free trade agreements. The article conceptualizes such provisions as instances of negative and positive integration. We show that while the Canadian provinces largely supported both types of provisions, sub‐federal units in Belgium, Germany and Austria resisted unfettered liberalization through negative integration and market‐creating positive integration. At the same time, they demanded stronger market‐correcting positive integration measures. Three categories of sub‐federal interests explain these differences in motivation. The Canadian province's engagement was motivated by (regional) economic interests, whereas bureaucratic self‐interest and political interests mobilized sub‐federal units in the European federations.

When politicization meets ideology: the European Parliament and free trade agreements

AbstractSince the Lisbon Treaty, the European Parliament (EP) has considerably increased its competencies in European Union (EU) trade policy. At the same time, a ‘new generation’ of free trade agreements (FTAs), including the Transatlantic Trade and Investment Partnership (TTIP) with the United States, Comprehensive Economic and Trade Agreement (CETA) with Canada, and the agreement with Japan, have been negotiated by the European Commission. Although existing literature has tackled the process of the EP's institutional self-empowerment in this policy area, there is no systematic research investigating the lines of conflict within the EP over FTAs. Through a newly collected dataset of all EP plenary debates between 2009 and 2019 on six relevant FTAs, we extract EP Members’ (MEPs) preferences by means of a manual textual analysis. We then test the explanatory power of the two traditional lines of cleavages within the EP over MEPs stated preferences: position on the left-right axis and support for EU integration. We find that both these dimensions fundamentally shape the conflict in the EP over FTAs. The impact of these two ideological cleavages is magnified in the context of politicized FTAs, namely the TTIP and CETA. Through these findings, the paper significantly contributes to the research on competition in the EP and, more broadly, to the understanding of EU trade policy and its emerging politicization dynamics.

When actions do not match aspirations - comparison of the European Union policy claims against what has been negotiated for health services, trade and investment

BackgroundObligations arising from trade and investment agreements can affect how governments can regulate and organise health systems. The European Union has made explicit statements of safeguarding policy space for health systems. We assessed to what extent health systems were safeguarded in trade negotiations using the European Union (EU) negotiation proposals for the Transatlantic Trade and Investment Partnership (TTIP) and the negotiated agreement for the EU-Canada Comprehensive Economic and Trade Agreement (CETA).MethodsWe assessed if and to what extent the European Union policy assurances were upheld in trade negotiations. Our assessment was made using three process tracing informed tests. The tests examined: i) what was covered in negotiation proposals of services and investment chapters, ii) if treatment of health services differed from treatment of another category of services (audiovisual services) with similar EU Treaty considerations, and iii) if other means of general exceptions, declarations or emphases on right to regulate could have resulted in the same outcome.ResultsOur analysis shows that the European Union had sought to secure policy space for publicly funded health services for services chapter, but not for investment and investment protection chapters. In comparison to audiovisual services, exceptions for health services fall short from those on audiovisual services. There is little evidence that the same outcome could have been achieved using other avenues.ConclusionsThe European Union has not achieved its own assurances of protection of regulatory policy space for health services in trade negotiations. The European Union trade negotiation priorities need to change to ensure that its negotiation practices comply with its own assurances for health services and sustainable financing of health systems.

THE IMPACT OF GLOBALIZATION AND THE INTERCONNECTEDNESS WITH THE COMPREHENSIVE ECONOMIC AND TRADE AGREEMENT BETWEEN CANADA AND THE EUROPEAN UNION

Elimination of the trade barriers and stimulation of business activity through trade liberalization led to the expansion in the field of the global economy. There are plentiful hesitations about who gains the highest benefit from free trade, especially when it comes to the Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union. Analogously, the previous mention guides to the dilemma about the trade negotiations and their position in the same agreement in which are the labor standards. Additionally, trade liberalization has influenced the creation of a close link connection between trade, labor, and globalization. This paper focuses on the effects of globalization and trade liberalization with their connection apropos the provisions from CETA; especially with an emphasis on Chapter 23: 'Trade and Labour’.

Community responses to international trade policy: A Newfoundland case study

Fisheries in Atlantic Canada are going through a period of transition due to environmental, economic, and policy changes that are impacting resource sustainability and community viability. One change is the Canada-European Union (EU) Comprehensive Economic and Trade Agreement (CETA), which came into effect in December 2017, offering increased market access for fishery-reliant provinces such as Newfoundland and Labrador. How CETA is locally perceived, how it plays out on the ground, and the effect it may have on the sustainability of the province's fisheries and communities is not yet known. Through interviews with key informants, including representatives of the fishing industry and government officials, this paper examines stakeholders' perceptions and initial responses to CETA in the Great Northern Peninsula (GNP) region, Newfoundland and Labrador. Our research shows that while tariff reductions for seafood products into the EU are considered a positive change, there are concerns that the phasing-out of a provincial policy that protects local employment may enhance vulnerabilities of coastal communities. Further, domestic funding support created to bolster the fishery sector is inadequate in addressing long-term issues. Considering that the coastal communities of the GNP are facing both market pressures and a lack of adequate resource access, it is unclear the extent to which CETA influences the existing situation or induces further change effecting local viability. A principled governance of seafood trade policy is imperative to elevate local protections over the homogenizing effect of free trade.

Comprehensive Economic and Trade Agreement (CETA) and air pollution

ABSTRACT The study empirically investigates and shows that on average, the implementation of the Comprehensive Economic and Trade Agreement (CETA) may contribute in the fight against global warming. This study finds that on average, a 1 percent increase of a percentage point in the bilateral volume of trade as a portion of GDP between Canada and a typical EU member could help reduce annual per capita emissions of GHGs in an average CETA member by about .57%. The results also show that the presence of CETA may decrease annual per capita emissions of GHGs in almost all CETA members. There is no statistically significant evidence suggesting an increase of GHGs per capita emissions in any CETA member, regardless of the model or statistical method employed in the paper. These results stand because of the combinations of the factor endowment hypothesis (FEH), the pollution haven hypothesis based on population density variations (PHH2) and the pollution haven hypothesis based on national income differences (PHH1) between each EU member and Canada.

A Paradigm Change: The CETA Investment Chapter

The Investment Chapter of the Comprehensive Economic and Trade Agreement (CETA) can be seen as an unofficial blueprint of future EU Investment Agreements and Chapters. It was developed under immense public pressure and had to fulfil multiple conditions resulting from the EU constitutional framework. This contribution highlights the political and juridical background of EU investment policy, and then analyses the most significant new approaches in international investment law - both with regard to substantive standards and investor-State dispute settlement - as exemplified in the CETA. With regard to the substance, it can be witnessed that states are more proactive in defining investment protection standards, leaving less discretion for adjudicators. With regard to dispute settlement, the EU managed to introduce a completely new Investment Court System (ICS) with preselected adjudicators and an appellate mechanism. In light of all these developments, this article argues that we are currently facing a complete change of paradigms in EU investment law, heading towards the EU’s long-term goal of establishing a Multilateral Investment Court (MIC).

Article 8.30: Ethics in CETA (EU-Canada Comprehensive Economic and Trade Agreement)

Article 8.30: Ethics in CETA (EU-Canada Comprehensive Economic and Trade Agreement)

Values and objectives of the EU in light of Opinion 1/17: ‘Trade for all’, above all

In Opinion 1/17 the Court of Justice of the European Union (CJEU) ruled that the new Investment Court System (ICS) in the Canada–EU Comprehensive Economic and Trade Agreement (CETA) is compatible with the EU constitutional framework. This article examines the CJEU’s analysis of the ICS in its Opinion through the prism of EU values and objectives. Given the judicial nature of the ICS, the article unfolds around the concept of the rule of law. The scope and the content of this core EU value are considered under both EU law and the European Convention on Human Rights (ECHR). In particular, the ICS is analysed in light of the two core rule-of-law requirements: equal treatment and the independence of courts, enshrined in Articles 20 and 47 of the Charter of Fundamental Rights (CFR). Importantly, in Opinion 1/17 the CJEU for the first time applied Article 47 CFR to a court outside the EU judicial system. While the CJEU ruled that the ICS complies with the CFR rule-of-law criteria, this article argues that it nevertheless falls short of the rule-of-law standards required for judicial bodies under EU law. The article demonstrates that the CJEU prioritises free and fair trade as the CETA’s core objective, rather than the rule of law, and endorses the ICS as the conditio sine qua non of guaranteeing such trade. The Court’s findings have wider consequences for the rule of law in international law as the EU continues to pursue the establishment of a Multilateral Investment Court (MIC).

The Proposed EU-UK Partnership Agreement as a Canada Style Agreement

This paper looks into the question of differentiation in EU foreign policy. Does the Trade and Cooperation Agreement (TCA) reached between the EU and the UK in December 2020 fall within a familiar differentiation track? In particular, is it a ‘Canada style’ agreement rather than, say, a ‘Norway style’ agreement? To what extent is it an attempt by the EU to nudge the UK into conformity with EU regulation? Does the agreement show that ‘geography matters’? We shall see that it is most of all a new generation deep trade agreement, like the Comprehensive Economic and Trade Agreement (CETA) between the EU and Canada. In a typology of international agreements, deep trade agreements have their distinct place. Their features allow parties to build a meaningful partnership while keeping a fair amount of control. This paper points to parallels between the EU-UK TCA and such an agreement. It gives the UK the opportunity to ‘take back control’, leaving it much more freedom than under a Norway style agreement. Its main feature is ‘freedom to legislate’, subject to the maintenance of a level playing field, and human rights protection. At no instance, there is a hard obligation for the UK to accept stricter environmental or sanitary standards on its territory than hitherto (the unique alignment of Northern Ireland having been laid down earlier in the 2019 Withdrawal Agreement). Importantly, the sophisticated dispute settlement provisions of the TCA have a unique feature, namely, that of facilitating divergence between the EU and the UK. The TCA allows the parties to inflict tariffs or to suspend (parts of) the agreement only under specific circumstances. Arguably, these circumstances are uniquely applicable to the TCA.

Short-Term Effects of the Comprehensive Economic and Trade Agreement on Municipal Procurement in Canada

The Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union, which entered into force in 2017, is the first international trade agreement that grants access to government procurement markets in Canadian municipalities. In the short term, will the agreement lead to major changes in the policies and procedures of Canadian local government procurement authorities or to changes in the proportion of foreign-controlled companies that win contracts? The magnitude of the impact depends on how the current practices of municipalities differ from those that are required under CETA. We focus on large Canadian municipalities and build our arguments on the basis of key informant interviews, analysis of legal and policy documents, and the econometric analysis of contract-level municipal data. Our conclusion is that CETA will not greatly affect process or outcomes, at least not in the short term.