What is CETA – and why is the EU-Canada trade deal still in limbo?
The EU-Canada trade deal has been provisionally in force since 2017, but ten EU countries have still not ratified it. What is CETA – and why, a decade after it was signed, is it still in limbo?
The European Union and Canada have been negotiating an ambitious trade agreement known as CETA for seven years. Signed in 2016, the Comprehensive Economic and Trade Agreement has already seen provisional implementation since 2017, eliminating most tariffs and boosting transatlantic trade. However, despite its provisional entry into force, the deal remains unfinished as ten EU countries have not ratified it, including Belgium, Bulgaria, Cyprus, France, Greece, Hungary, Ireland, Italy, Poland, and Slovenia.
CETA streamlined trade in goods and services between the EU and Canada, with 98% of EU-Canada traded goods now being tariff-free. The agreement also opened up more of the Canadian market to European companies in various sectors, including financial services, telecommunications, and transport. The deal has significantly increased EU-Canada bilateral trade, reaching €130 billion in 2025 compared to €72.1 billion in 2016, when CETA was signed.
Despite its benefits, CETA faces resistance in EU countries due to concerns over food safety, environmental standards, and unfair competition. European farmers have raised concerns about Canadian production rules, arguing that some are less stringent than those in the EU. Additionally, the Investor-State Dispute Settlement provisions in CETA have been criticized, as they allow companies to bring claims against states before an arbitration tribunal if they believe a law discriminates against them and harms profits.
The EU has addressed these concerns by including safeguards in the deal and replacing the Investor-State Dispute Settlement mechanism with an Investment Court System. However, concerns remain, and the ratification process is effectively blocked in several EU member states. The situation is further complicated by the fact that there is no clear timetable for ratification, as the process is currently frozen in countries like France, Poland, and Italy, where the deal was rejected or blocked due to concerns about GIs (geographical indications) and the protection of EU farmers' interests.
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