Concept in Definition ABC

The acronym CETA stands for Comprehensive Agreement on economy Y Commerce, which in English is equivalent to Comprehensive Economic and Trade Agreement. It is, therefore, a trade agreement and it was reached in 2017 to enhance economic relations and investments between the European Union and Canada.

From this agreement it is intended to increase the commercial flow between a part of the territory European and the country North American. CETA's main proposal is based on the removal of obstacles to trade relations, especially in the food and agricultural sectors.

On the other hand, the agreements are aimed at limiting the capacity of governments to economic activity from their respective countries

In the European Parliament, the majority voted in favor of CETA, but there was significant opposition (408 votes in favor and 254 against). This fact highlights that there are two different positions.

Arguments in favor of CETA

Supporters of the bilateral agreement emphasize a number of aspects:

1) it will mean a significant saving in relation to trade tariffs and this will benefit consumers who finally purchase a product,

2) an increase in exports is foreseeable,

3) the bureaucracy between the European Union and Canada will be reduced and this factor will boost the creation of jobs in both territories and

4) European companies will be able to compete in equality conditions in Canada and this circumstance will especially favor small and medium-sized companies.

Those who defend the agreement consider that it is an advance that can favorably influence the ratification of the TTIP, the trade agreement between the European Union and the United States that in 2017 is in the process of negotiation. On the other hand, it is believed that the alliance between Canada and the European Union can act as an antidote to combat the protectionist and nationalist positions that exist in the European Union and in the United.

Arguments against CETA

Different parties and organizations of the European Union have expressed their total rejection of this agreement. Among the arguments used, we can highlight the following:

1) Public services that are privatized or outsourced may not return to the hands of the organisms public,

2) the CETA agreement has not been ratified by the different national parliaments of the European Union, so it is considered to be an illegitimate agreement,

3) It is believed that the creation of arbitration tribunals independent of governments will not favor citizens and will only benefit large multinational companies and

4) it is foreseeable that the public services of Canada and the European Union will weaken.

Photos: Fotolia - Redpixel / Bjorn Braun

Topics in CETA