(VOVworld)- After 7 years of negotiations, the Canada-EU Trade Agreement is at risk following Belgium’s disapproval. If the agreement is not signed, the EU’s trade will be seriously affected, especially when the organization is dealing with Brexit and stagnant growth. Diplomatic efforts to save the agreement are underway.

Canadian Prime Minister Justin Trudeau at a press conference in Ottawa on October 20, 2016 (Photo: Xinhua/VNA)

The Canada-EU Trade Agreement is expected to be signed during Canadian Prime Minister Justin Trudeau’s visit to Brussels on October 27. But, last week, the Walloon regional parliament passed a resolution against it due to concerns about standards on consumption, environmental protection, and the labor market. Without approval from regional parliaments, the Belgian government can’t ratify the trade deal. To take effect, the deal needs unanimous agreement by the parliaments of all 28 EU members plus 10 regional parliaments.

Why was CETA rejected?

So why was a trade deal which is expected to increase two-way trade 20% and generate 80,000 jobs rejected? Will it make it more difficult for the EU to sign other trade agreements?

According to the Wall Street Journal, if signed, CETA would boost EU economic output by 5.8 billion euros a year. There’s growing concern that the failure of CETA will cast a shadow on the EU’s other trade policies, including the Transatlantic Trade and Investment Partnership, or TTIP, with the US. EU Council President Donald Tusk has warned that the EU will never sign another FTA if CETA is rejected.

Many countries are worried that CETA may lower standards on the environment and labor laws. Walloon administration fears that cutting 99% of all tariffs will make their products unable to compete with products from Canada. Over the past year, the EU has seen rising protests against free trade agreements which some say give too many rights to multinational companies and put workers at a disadvantage. EU officials say FTAs are the best chance for Europe to shape globalization to benefit the people.

Efforts to save CETA

Shuttle diplomacy is underway to save the deal. On October 24, EU Council chief Tusk discussed the deal with Belgian Prime Minister Charles Michel and met with President of the Walloon government Paul Magnette. The EU has set a deadline for Belgium to decide if it would sign the deal after 7 years of negotiations. Canada expressed hope for a solution though it previously criticized the EU for failing to find a common voice.