10/14/2016 08:40 EDT | Updated 10/14/2016 09:00 EDT

Canada-EU Trade Deal In Peril After Belgian Region's Rejection

Opponents fear deal will worsen standards for food, work and industry.

BRUSSELS — A Belgian region on Friday rejected a wide-ranging trade deal between the European Union and Canada, threatening the agreement which is supposed to be signed in two weeks and requires unanimous approval.

Paul Magnette, the leader of the region of Wallonia, said he would "not give the full powers to the federal government'' to back the deal at an EU meeting Tuesday, where the 28 member states have to decide on full approval of the agreement.

Wallonia, a francophone region of 3.5 million in the south of Belgium, fears the deal with Canada will leave the farming and industrial sectors too exposed to cheaper imports from Canada. Environmental activists and trade unions have all warned such international deals could worsen local standards for food, work and industry.

Andre Antoine, chairman of the Belgium's French-speaking region of Wallonia parliament, gives a speech during a plenary session of the Walloon parliament in Namur, on October 14, 2016. Lawmakers in the small Belgian region of Wallonia voted to block an EU-Canada trade deal in a move with serious implications for future trade talks with the US and a non-EU Britain. (Photo: Bruno Fahy/AFP/Getty Images)

Magnette said that "the guarantees are insufficient'' and said labour, environmental and legal standards needed to be improved before such a deal could be approved. "We have to say 'no' so we can negotiate,'' Magnette said. The regional legislature rejected the deal by a 46-14 margin, with one abstention.

All EU nations need to back it, and under Belgium's byzantine constitutional rules to appease different linguistic blocs, one region can effectively veto such a deal for the whole country.

"I will not give the full powers to the federal government and Belgium will not sign CETA on the 18th of October,'' Magnette said.

"We are certainly brave.''

— Marie-Dominique Simonet, Walloon Christian Democrat party

The agreement has already been backed by an overwhelming majority of the 28 member nations of the EU, a bloc of half a billion people. It is scheduled to be officially signed at an EU-Canada summit in Brussels with Canadian Prime Minister Justin Trudeau on Oct. 27, seven years after talks started.

The Belgian national government and the dominant Dutch-speaking region on Flanders back the deal.

"We are certainly brave,'' said Marie-Dominique Simonet of the Walloon Christian Democrat CdH party.

Walloon Minister President Paul Magnette (centre) meets with protesters ahead of a plenary session of the Walloon parliament in Namur, Belgium, on October 14, 2016. (Photo: Bruno Fahy/AFP/Getty Images)

The Liberal MR party, which is also represented in the national government, was scathing. "You are taking Belgium and Europe hostage,'' said Virginie Defrang-Firket in the legislature. "Nobody will trust us anymore,'' she said.

The EU says the Comprehensive Economic and Trade Agreement deal with Canada will improve trade, create jobs, and remove just about all tariffs and custom duties while at the same time guaranteeing European standards on anything from food and health quality to labour rights.

For many, the CETA is only a prelude to an even bigger free trade deal, called TTIP, that is being negotiated with the United States, and which has given rise already to massive protests in several member states, including Belgium — and Wallonia.

Talks are planned ahead of Tuesday to see to whether Wallonia might withdraw its rejection.

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