A decade in the making, Canada and the EU's massive trade deal remains unfinished.
In short: The Comprehensive Economic and Trade Agreement is one of the most ambitious trade initiatives in modern history, removing 98% of tariffs between Canada and the European Union. Yet, despite being provisionally applied since 2017, the deal faces a complex, years-long journey toward full ratification across every individual member state.
The path to CETA began in 2004 with a framework for a Trade and Investment Enhancement Agreement, which aimed to move beyond simple market access. By 2009, negotiations for a broader agreement were officially launched. The final text was concluded in 2014, but the process of bringing it into force has been anything but straightforward. Because it is a mixed agreement, it requires approval from the European Parliament and every individual EU member state, a process that has triggered intense constitutional debates and legal challenges across Europe.
Significant hurdles emerged in Belgium and Ireland. In 2016, the Walloon Parliament in Belgium nearly scuppered the deal, requiring a last-minute internal compromise before the federal government could sign. Meanwhile, in Ireland, the Supreme Court ruled in 2022 that ratifying CETA would be unconstitutional under existing law, necessitating legislative amendments to the Arbitration Act of 2010. These were finally addressed by the Arbitration (Amendment) Act 2026, signed into law in June 2026.
The agreement also faces scrutiny over its dispute resolution mechanisms. Critics have long voiced concerns that investor-state tribunals could undermine state sovereignty. In response, the CETA Joint Committee has worked to clarify protections, issuing narrow interpretations of concepts like fair and equitable treatment. As of May 2026, only 17 of the 27 EU countries have fully ratified the agreement, while Cyprus has voted against it. Despite these delays, the provisional application continues to facilitate significant economic exchange, with Canadian goods and services exports to the EU reaching €48.3 billion in 2024.
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- Summary by Intellect · source: Comprehensive Economic and Trade Agreement
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