Lurking beneath the triumphant march toward the TTIP (the Transatlantic Trade and Investment Partnership between the EU and the USA), formal negotiations for which began on 7th July, lies the somewhat less celebrated attempt at a trade agreement between the EU and Canada.
Don't know about TTIP? Watch our Essential Guide to the Transatlantic Trade and Investment Partnership (TTIP) here: |
Sceptics of the TTIP point to the stalled EU-Canada negotiations, arguing that if we can’t get these off the ground, how can the more ambitious TTIP ever succeed? Talks for the EU-Canada trade deal began four years ago, and their objectives now sound eerily familiar. After the US, the EU is Canada’s largest trading partner and it made sense to make importing and exporting between the two markets easier.
On paper, the EU-Canada negotiations should have run a lot smoother than the TTIP. In terms of scale, it is a much less ambitious project and, thanks to the cultural fervour of French-speaking Canada, the exception culturelle allowing France to safeguard its cinema industry was not an issue.
But the 2012 deadline for reaching an agreement has long passed and negotiations seem frostier than ever. A major sticking point concerns the exchange of Canadian beef and EU dairy products. Both sides are holding out for a better deal, but this stubborn determination has significantly hindered proceedings.
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Compared with the heralded EU-US agreement, the thusfar unsuccessful EU-Canada relationship looks like the under-achieving sibling – attempts were made to nurture it but it is increasingly overshadowed by the promise of a bigger and better agreement. So, should we throw in the proverbial towel, accept that neither child was destined for greatness and get a dog instead? |
In short - no. Despite the warning signals kicked up by the ever-flailing EU-Canada deal, there is reason to hope that the TTIP will emerge. An agreement between Canada and the EU may seem convenient, but the EU economy is in fact 10 times larger than Canada’s. The EU and the US, in contrast, are much more evenly matched which makes for firmer foundations for a trade deal.
There is also a lot of political motivation on both sides of the TTIP to form a trade alliance, thanks to the sluggish US economy and the recession clouding much of Western Europe. This motivation is what seems significantly absent from EU-Canada talks.
One of the TTIP’s most compelling features is negotiators’ seemingly unswerving determination to implement changes quickly, with enticing promises to wrap up talks within 18 months. Again, this contrasts with the EU-Canada talks which lacked a sense of urgency.
All considered, the furore surrounding the TTIP may not be symptomatic of chronic optimism after all. It is possible that this trade agreement will benefit from the wisdom that EU-Canada talks have so graciously provided, and from the political will and energy of the EU and the US to boost their economies. Only time will tell if the TTIP will be a roaring success or just another forgotten trade deal but right now the optimism, though potentially misplaced, is contagious.
If you liked this blog, you'll love our Transatlantic Trade and Investment Partnership (TTIP) Whitepaper:
