Romania’s foreign minister has said his country could scuttle the Canada-EU free trade deal if Canada doesn’t remove visa requirements for Romanians.
"I do not believe the Romanian parliament will ratify the EU-Canada free trade agreement without the Canadian authorities first adopting fair measures concerning the freedom of movement of Romanian citizens," Titus Corlatean said Thursday, as quoted at the EU Observer.
All 28 EU member states must ratify the Comprehensive Economic and Trade Agreement (CETA), as the trade deal is known, in order for it to come into effect. Canadians provinces also have to ratify the deal, but they appear to be largely onside, as they were part of the negotiations.
As part of its announcement of the trade deal, the Harper government said it would lift visa restrictions on citizens of the Czech Republic. But the government did not address visa requirements for citizens of Bulgaria and Romania.
"The fact that visa requirements for Czech citizens were lifted, in the context of the EU-Canada [deal], is an important precedent for Romania,” Corlatean said, as quoted at Bulgarian news site Novinite.
Canada had lifted visa requirements for Czechs in 2007, but reinstated them in 2009 after an influx of refugees, many of them Roma. Similar concerns about refugees are likely keeping the government from lifting visa rules for Bulgaria and Romania, the two poorest members of the European Union.
Trade Minister Ed Fast said during a press conference that the government views visas and trade deals as separate issues, but expressed confidence the visa issues would be resolved.
Corlatean noted that the EU has put into place a new law that requires reciprocity on visa rules. Canada will have to remove visa restrictions on EU members states or face the possibility that Canadians will require visas to travel to European countries.
The rule isn’t expected to come into force for another two years, Romania Insider reports.
It's Not A Done Deal Yet
The trade pact needs the consent of Canada's provinces and EU member states to become law. So far, it's looking good on the provincial front: Quebec, Manitoba, New Brunswick, Newfoundland and Saskatchewan's leaders have all praised the deal, and Ontario seems open to it assuming it can get compensation for some of its industries that will be harmed by the deal. <em>Pictured: Canadian Prime Minister Stephen Harper and European Commission President Jose Manuel Barroso shake hands following a joint media availability Friday, October 18, 2013 at the European Commission in Brussels, Belgium.</em>
Canada will partially extend patent protection for brand-name drugs, which would delay the introduction of cheaper generics by up to two years. Officials say it will be eight years before any impact of these changes show up as higher costs for provincial drug plans. Earlier reports have suggested the cost to the health care system of extended drug patents could run between $1 billion and $3 billion annually. Jim Keon, president of the Canadian Generic Pharmaceutical Association: The EU trade deal will "delay market entry of cost-saving generic prescription medicines in Canada in the future, increasing health-care costs for provinces, employers that sponsor drug plans for their employees and Canadians who pay for their prescription medicines out-of-pocket." The federal government has suggested it will compensate provinces for higher costs as a result of the agreement.
Domestic car producers will be able to increase sales into Europe to 100,000 units from about 10,000 today under relaxed rules. The EU will phase out its 10-per-cent tariff on imports, and Canada will phase out a 6-per-cent tariff on European car imports. That could be good news for Canadian fans of European luxury cars, as those vehicles will be cheaper. But that, in turn, could be bad news for Canadian auto manufacturers. Dennis DesRosiers of DesRosiers Auto Analysts: "I don’t think anyone can definitively know what the impact of the current EU Agreement will be on the automotive sector. ... The [Canadian] industry peaked in the year 2000 and has been struggling since and, indeed, just finished one of its worse decades in history and continues to deteriorate. Was this the long term result of FTA and NAFTA? We don’t know but it could be."
Canadian beef farmers increase their quota by 50,000 tonnes, in addition to 15,000 tonnes for high-quality beef. Pork farmers will see their quota rise to 80,000 tonnes from the current 6,000. But producers will have to convert to hormone-free product for the European market, which experts say can add about 15 per cent to costs. Martin Unrau, president of the Canadian Cattlemen's Association: "The removal of long-standing barriers in this agreement, such as high tariffs, finally enables Canadian beef producers to benefit from the high value that the European beef market represents." Dairy Farmers of Ontario: "It will take income from Canadian dairy farmers and their communities and give it to the European industry."
Companies will be allowed to bid on major government procurement contracts right down to the municipal level. A joint study showed the new access will give European companies leeway to bid on federal contracts worth between $15 billion and $19 billion an year, and municipal contracts worth $112 billion a year. Critics say that, because of the common practice of "hiring Canadian" in government contracts, EU access to them could mean job losses in Canada. Trade Justice Network: "Canadian governments would lose a powerful tool for spurring job creation and economic development."
Foreign takeovers of Canadian firms now require a formal federal government review if the deal is worth $1 billion or more, but this agreement will raise that to $1.5 billion.
Water For Profit?
Labour and consumer groups fear CETA could lead to the privatization of Canada's water supply and infrastructure. According to early leaks from the negotiations, <a href="http://www.thestar.com/business/2012/01/25/canada_seeks_to_carve_out_agriculture_telecom_in_eu_trade_talks_documents.html" target="_blank">Canada did not try to protect water resources as part of the trade deal</a>. The Council of Canadians writes: "This deal will give French companies Suez and Veolia, the two biggest private water operations in the world, access to run our water services for profit. Under a recent edict, the Harper government has tied federal funding of municipal water infrastructure construction or upgrading to privatization of water services. Private water operators charge far higher rates than public operators and cut corners when it comes to source protection."