Trudeau makes a trade deal with Europe

Trudeau arrives in Europe to hail trade pact as countermeasure to isolationism

STRASBOURG, France — Prime Minister Justin Trudeau arrived in Strasbourg, France, hours ahead of what was billed as an historic, confidence-building speech to European lawmakers. Trudeau landed in the eastern French city that borders Germany in the early morning hours Thursday — a day after Canada and the European Union approved a free trade deal.

Politicians in Canada and Europe are hailing Wednesday's approval of the Comprehensive Economic and Trade Agreement by the European Parliament as a win for the values of openness in the face of anti-trade movements, including the Donald Trump administration.

The Strasbourg legislature approved trade deal by a margin of 408-254, with 33 abstentions. The vote clears a major hurdle for the deal that saw its first round of bargaining almost eight years ago and has had to overcome mounting anti-trade populism in Europe.

Trudeau hammered home his anti-isolationist and anti-protectionist message in his address Thursday to the European Parliament, a first for a Canadian leader, and to top business leaders a day later in Germany.

"I think it's an illustration that when you put forward a progressive trade deal that recognizes the responsibility of governments to create jobs, create inclusive growth, not just for a few, but for everyone, we can move forward on globalization," Trudeau said.

International Trade Minister Francois-Philippe Champagne, who was in Strasbourg ahead of the vote, said, "this is the right deal at the right time. Good for workers, consumers and a new standard for trade."

EU Trade Commissioner Cecilia Malmstrom took direct aim at anti-globalization forces in remarks to Parliament, in what appeared to be a thinly veiled rebuttal to Trump's protectionist and anti-immigration policies.

"With Canada we share the democratic values of tolerance and openness. We co-operate in tackling common challenges such as migration, sustainable development, climate change and terrorism," Malmstrom said.

CETA, as well as its companion strategic partnership agreement, would strengthen not only Canada-EU economic relations but our "geopolitical alliance ... making that partnership deeper and more powerful, reaffirming our fundamental values, political principles, and using them to shape globalization."

The deal will help each side "serve its citizens" in the 21st century, Malmstrom added.

The Conference Board of Canada called the agreement good for both sides, since economic history demonstrates that greater free movement of goods, services and people is a catalyst for economic growth.

"Amid worries of U.S. protectionism, the opportunities CETA creates provide a shining example that international trade is not a zero-sum game," said Craig Alexander, the board's chief economist.

"Canada is in a unique position to show that trade is good for people and I think we're going to make that case across the world."

Politicians need to do more to sell the merits of free trade to an increasingly skeptical public, but the deal will also sell itself once it is fully ratified, he added.

"When people see in practice what it means for them, I would think that over time people will see the benefits."

Critics of the deal "may be philosophically driven, just being against any trade," Champagne noted.
Wednesday's vote should close the drawn-out approval process across the 28 member states, where some governments and legislatures had tried to modify or scupper the deal. The Netherlands could still block it if it demands an advisory national referendum on the deal.

CETA is designed to unite the markets of Canada with Europe. The vote comes as populist parties in Europe and Trump in the U.S. have been looking increasingly inwards, thwarting a trade deal with Pacific countries and floating the idea of tariffs on imports.

David Martin, a European parliamentarian for Scotland, called CETA a "watershed moment" that has had to overcome many obstacles.

"Together with our Canadian allies we are standing firm against growing global protectionism, championing open trade in a time when others are losing faith," he said in a statement.
At a time we should be globalizing trade, creating a network that would support global economy and stabilize markets, many countries are becoming more isolationist. The problem may be fear of making that leap of faith, suspicion about the integrity of other countries and fear of being at the bad end of a worse trade bargain. It seems to be an era of building walls instead of bridges. The Canada - EU trade deal is a small step toward changing that attitude. But walls of suspicion and distrust are hard to break down. And the US is setting the example.