The European economy is hoping for a boost in trade with Canada and for further trade agreements with other countries such as Chile and Mexico. The approval of CETA is part of the newly established international trade strategy of the new center-left German coalition.
This new trade strategy also aims to deepen trade relations between the EU and the US, which are currently overshadowed by massive subsidies for companies producing in the US.
Furthermore, sustainability standards must become a standard part of future trade agreements. At the urging of the Greens, additions have been included to apply the same climate and environmental criteria used in the EU in trade treaties.
Germany thus has its voice back on trade policy, said Minister of Economic Affairs Robert Habeck (Greens). The EU still lacks approval from several countries,
CETA can only come into effect once all 27 EU member states have given the green light. However, many countries are still missing, including Italy and France. The provisions of the agreement have been provisionally applied since September 2017.
This means that 98% of all goods traded between the EU and Canada are no longer subject to customs duties. Canada itself has already completed ratification. According to industry organizations, the volume has already increased by about one fifth since the provisional application of CETA.