ANALYSIS OF FREE TRADE AGREEMENT CETA (PART ONE)

frihandelsavtalet ceta_handelsbarriärer_eu

November 2019

 

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CETA stands for Comprehensive Economic Trade Agreement and is a free trade agreement between EU and Canada. All EU member states approved the treaty, the European Parliament approved the deal and it got operative in 2017.  When the CETA deal was signed the EU praised the deal  and said that everything would become fantastic because of CETA.

A PRIVATE COURT

In the CECA-treaty we have the now famous mechanism called Dispute Resolution Mechanism. This is a mechanism which bypass a nations own court system and creates a supranational court system.

THE LISBON TREATY

The Lisbon Treaty was approved by the European Parliament in 2008 and entered into force in December 2009. One thing the Lisbon Treaty does is that individual EU member states can no longer make trade agreements with other countries,  EU makes the international treaties for them. The Lisbon Treaty is more or less the Constitution of the European Union.

The Lisbon Treaty also  means that individual EU member states are not allowed to decide in certain areas if the EU already has done so. Those areas are: the internal market, social policy, agricultural and fishery, environment, consumer protection, transport, energy and some  public health matters. The EU has exclusive decision authority in the customs union, competition rules of the customs union, monetary policy for the euro, conservation of marine biological resources (fishing), common commercial policy and international agreements.

They say that CETA has resulted in that 98 % of tariffs between EU member states and Canada are gone.

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No more deals in the dark” a demonstration against the TTIP free trade agreement.

MY COMMENT

The Lisbon Treaty was a huge power grab from sovereign national states to Brussels. One could say that the Lisbon Treaty created the United States of Europe. After the signing of the Lisbon Treaty individual EU-member states parliaments got the role of implementing EU-policy in their countries.

Do you think that getting rid of tariffs is a good idea? Well have a look at USA and what the NAFTA free trade agreement did for them (NAFTA = a free trade agreement between USA and Canada). NAFTA meant that the U.S. was flooded with cheap  imported products from other countries which resulted in that American products were sold less and which resulted in that less job were created in USA.

Another thing that happened with NAFTA was that the manufacturing of products went abroad because of the cheap labor in other countries. This resulted in that jobs in USA disappeared. It also resulted in a weaker workers union since companies threaten to move their production abroad if the unions demanded too much. Salaries for workers in U.S. has been staggering since NAFTA introduction.

Do you like the idea of a private court system? Well ask Canada what they think of NAFTA. After NAFTA Canada became the most sued western country because of the private court system in NAFTA. There is even a documentary about this called Might is right.

With this private court system global corporations  can sue a country if that country makes a policy or law that inhibits the profit of the company. This has happened several times.

 

Photo
M0tty [CC BY-SA 4.0], via Wikimedia Commons

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