EU, Canada, Brexit and Trade Negotiations

The trade agreement (CETA) between the EU and Canada, signed today in Brussels, took seven years to negotiate. This is a long time. However, we should note that there was good will on both sides and not too many marked differences in terms of the underlining economic philosophies. But trade agreements touch many details, they are complicated, slow processes. This is especially true for the EU because the European Commission has to keep all the member states on board as the discussions progress. That’s far from being easy and it is actually becoming even more difficult as we look ahead and take into consideration the current state of the Union.

In the circumstances, and following the Brexit decision, it seems rather improbable to reach an agreement with the UK within a two-year time frame, as required by the EU treaty. We might find ourselves confronted with never-ending ping-pong. Unless both sides are reasonable in their demands and state very clearly what they want to achieve as part of a mutually beneficial compromise. The discussions call for a wise, constructive approach. But the politicians, of either side, are rarely up to that task. They see it as a fight and then everyone loses.